CSR annual report Hoogesteger 2018

CSR annual report Hoogesteger 2018

CSR annual report Hoogesteger 2018

CSR annual report Hoogesteger 2018

CSR annual report Hoogesteger 2018

History

Our founder, Bert Hoogesteger, believed that everyone should be able to enjoy fresh juice. Back in the 1990s, fresh juice in bottles was not available in supermarkets, due to its maximum shelf life of one day. Bert Hoogesteger developed his own technique, which made it possible to extend the shelf life of fresh orange juice. To this day, we continue to follow his vision.

Hoogesteger and CSR

With our mission of letting everyone enjoy fresh fruit and vegetable juices, we are close to nature. We therefore feel responsible for our impact on the environment. For example, we consider the consequences of the transport of raw materials and the use of water to wash them. Other considerations include the necessity of cooling the environment in which raw materials are pressed and stored, and, finally, the packaging in which the juice is bottled.

We also make sure that we are aware of the insights of our suppliers. How do they deal with the environment, and—equally important—how do they treat their employees? Because we purchase raw materials from suppliers in various high-risk countries, we devote considerable attention to chain responsibility.

Last year, we defined a baseline measurement with the goal of enhancing our understanding of our direct and indirect impact. This measurement has given us a better view of where we stand and which steps we can take next. To bring guidance and focus to our efforts, we subsequently formulated our CSR policy and associated objectives and measures. We also introduced a digital version of our CSR annual report so that everyone can continue to follow our plans and progress.

Above all, I am very proud of the zeal and enthusiasm with which the CSR team has started working on our CSR plans. Setting goals is one thing, but actually initiating their implementation is often another. This new annual report is partial proof of the permanent place that has been assigned to CSR in the daily operations of Hoogesteger.

Edo Abels, Managing Director

ENERGY AND CLIMATE

Our carbon footprint

Our products are produced and stored in a refrigerated environment. This requires a relatively high level of energy usage. For example, our footprint is equal to:

  • The energy consumption (gas and electricity) of 498 households, or
  • 1,435 round-trip flights to New York City

We have taken various measures to keep our energy usage as low as possible.

  • All areas are cooled using one of the latest cooling systems based on ammonia and CO
  • All doors are designed to minimise the outflow of cold air.
  • The production location is equipped with LED and automatic lighting.

We are constantly minimising our carbon footprint. Now that we have an overview, we will continue monitoring our progress properly.

In 2018, we replaced a number of single-glass windows in the offices and canteen with double glass. We also invested in a new energy-efficient cooling machine and a new press machine. We purchased the press machine at the end of 2018, and we hope to see the results in 2019.

In 2018, our carbon footprint increased by 23% compared to 2017. Most of this increase can be explained by a 20% increase in production. The expanded footprint is also due to a number of purchasing trips made by air travel, including several visits to the supplier of our new press machine. In addition, the business kilometres claimed were not included in the calculation of the footprint for 2017. These figures have now been included, and they will be included from now on, thus completing Scopes 1 and 2 of our carbon footprint. We hope and expect to be able to show a relative decrease in our carbon footprint next year.

CO₂ footprint for Hoogesteger 2018

Total 2.476 tonnes CO2

    Development of the CO₂footprint in relation to production (in %)

    Base year is 2017

    CO₂emissions in the chain

    Minimising COemissions in the chain

    The chain includes sourcing, transport, waste and commuting. To ensure a targeted start for these efforts, we charted our emissions from transport. Packaging is another important point of attention. In this regard, we aim to use as few materials as possible and to use recycled materials wherever possible. In 2018, we achieved a 15% reduction in the materials used for our labels.

    In addition to these efforts, we must obviously make the most conscious choices possible during our daily activities. This digital CSR annual report is a good example, as is the shift to digital payslips, with which we saved 22.8 kilograms of paper. To increase our impact, we are cooperating with sustainable partners whenever possible, and we continue to engage our partners in discussions about CSR

    Purchasing partners

    We do not have the same level of influence everywhere in the chain. Fortunately, this does not mean that our partners are not making progress. For example, we received the good news that United Plantations Swaziland, one of our suppliers in South Africa, has established a large installation of solar panels. We hope that many other parties will follow this good example.

    Transport

     

    A large share of our CO₂ emissions in the chain is caused by transport. To minimise these emissions, we use train and boat transport where possible. In addition, we adhere to the philosophy of ‘as close as possible and as far as necessary’. We source apples, pears and various kinds of vegetables in the Netherlands as much as possible. We also work with transport suppliers that carry their freight as sustainably as possible. For example, our neighbour and main transport supplier, Heinis Logistics, uses only Euro-6 trucks.

    The fact remains that the raw materials for our daily fresh juices are sourced from all over the world, including from South Africa, Egypt and various countries in Central and South America. The source of our supply depends on where the quality of the harvest is highest at any given time.

    To gain a better understanding of the amount of CO₂ emissions caused by transport, we have charted the transport-related emissions for the majority (80%) of our raw materials. How do they travel from the supplier to our production location (upstream)? What volume of emissions does this produce? The graph below shows emissions from transport in relation to emissions from our own production location. This graph does not include transport by road in the country of origin, nor does it include transport from our production location to the customer (downstream).

    Our carbon footprint in relation to CO2 emissions from transport

    • Footprint (Scopes 1 and 2) 2018: 2,476 tonnes 5% 5%
    • Transport upstream (part of Scope 3) 2018: 44,444 tonnes 89% 89%

    Cold storage and logistics

    Our storage facility in Velsen is largely self-sufficient, due to the use of solar and wind energy. This is a result of the sustainability policy of our partner Kloosterboer, from whom we rent our storage space. Kloosterboer works according to the Dutch Green Building Council standards, and it was the first cold storage facility to receive the Lean & Green award.

    For their refrigerated and frozen storage facility in Rotterdam, Kloosterboer achieved the BREAM-NL certificate of ‘outstanding’ in 2018, with a score of 86.8%. In another favourable development, one of our suppliers, OFD, moved into Cool Port’s sustainable building this year.

    Sustainability and CSR also take high priority in the company policy of our partner XPO Logistics in Nieuwegein. They are ISO 14001 certified, publish annual ‘sustainability reports’ and are officially committed to the basic principles of the UN Global Compact.

    CIRCULAR ECONOMY

    With the Raw Materials Agreement, the government aims to achieve a circular economy by 2050. For us, this will mean:

    • Maximising the reuse of waste
    • Minimising food waste
    • Minimising plastic

      Maximising the reuse of waste

      Residual flows of fruit and vegetables in 2018 total 24,492 tonnes (in %)

      Disaggregated by destination

        Total waste 2018: 1,510 tonnes,
        excluding residual flows (in %)

          Destination residual flows 2017 and 2018 (%)

          • 13,506 tonnes of our residual flows are used as animal feed (55% of the total residual flow, relative to 50.5% in 2017).
          • 10,986 tons of our residual flows have been converted into biogas via fermentation (49.5% of total residual flow, relative to 45% in 2017).

           

          • Our industrial waste is separated and recycled as much as possible by an external party, Recycling.nl.
          • According to the Milieu Centraal foundation, it should be possible for households to have no more than 20% in residual waste left after waste separation. This share is currently around 45% for households. Even though we are a company, we are happy to report that we have managed to stay below this target of 20%, with a residual waste share of 18%.
          • Since 2018, part of our plastic waste, which ended up in residual waste last year, has been used for high-calorie incineration.
          • We use recycled cardboard as much as possible for packaging our bottles. In 2018, we were able to do this for 43% of our production.
          • The wooden crates in which our oranges arrive are either returned to the circuit or shredded for use as fuel.
          • Juices that are not available to the customer (e.g., due to a minimum shelf life that is too short) are given to our employees and the food bank as much as possible (see also below).
          • Starting this year, juices that cannot be delivered to the food bank are sent to Kwaliflex, a company that provides power to three villages through the use of their fermentation installations.

          Ladder of Moerman

          Given the large quantities of residual flows, we regard them as an opportunity to use them even more efficiently. In 2018, we were able to use 4.5% more residues as animal feed relative to fermentation. This is the result of our new press machine, which we brought into operation at the end of 2018. This could be promising for 2019.

           

          Minimising food waste

          In addition to converting residual flows into animal food as much as possible, we prevent food waste in the following ways:

          • Our juices are made exclusively from Class 2 and 3 fruits and vegetables. These are known as ‘outsiders’, meaning that they do not meet the requirements to be displayed on the shelves of the supermarkets or greengrocers.
          • We use PEF and HPP technology to treat part of our products, thereby ensuring a longer shelf life while preserving taste and nutritional values.
          • Bottles that are not suitable for delivery to our customers are offered to our employees. This is free during working hours, and at a discount if they wish to take the products home with them.

          Food bank

          Juices that are no longer allowed to be sent to customers from the XPO storage facility are donated to the food bank whenever possible. This is done in close collaboration with our customers, as the bottles often contain brand names.

          In 2018, 38.6% of these juices were donated to the food bank on time, as compared to 19.9% in 2017.

          Minimising plastic 

          With plastic packaging, we are addressing an important CSR theme. Together with our customers, we are constantly looking for ways to increase the sustainability of our packaging. In 2015, results of a life-cycle analysis indicated that it would be more sustainable to work with PET than with glass.

          In addition to recycled PET, we are considering ways to reduce the amount of plastic in our operations. In 2018, we were able to reduce the amount of plastic used in each litre bottle by 3 grams, for a reduction of 8%.

          In addition to increasing the sustainability of our packaging material, we strive to maximise waste separation by the end user. One way that we do this is by providing information on the label. Because we are a private label, we do this in collaboration with our customers. At present, 90% of our customers who deliver directly to consumers have logos or text on the label regarding the recycling of the bottle.

          WATER

          Water consumption

          We use a vast amount of water to clean the raw materials and machinery. We have linked the amount of water used to the litres of juice produced, and the result is a lot to take in. It is therefore our goal to reduce water consumption where possible.

          Despite the purchase of a second HPP machine, which consumes a large volume of water, our water consumption in 2018 decreased by 0.1 litre per litre of juice produced, as compared to 2017. We achieved this mainly by adopting economical water use as a critical performance indicator (CPI) for the cleaning company with which we work.

          We achieved a 0.3-litre decrease in 2017, as compared to 2016, through efforts including adjusting our reels and replacing spray nozzles in machines with more efficient versions.

          Water consumption per litre of juice produced

          2018: 3.8 litres

          2017: 3.9 litres
          2016: 4.2 litres

          Waste water

          Of all the water we use during the production process, 80% ends up as waste water. The first purification step takes place in our factory. The sludge released during this process is collected and converted into gas (1,600 tonnes per year) via fermentation. The purified waste water undergoes a second round of purification at the installations of the Dutch Water Board. This water is nutritious, as it contains sugar. The bacteria found in water that contains sugar are characterised by their ability to convert contaminated water into harmless substances. The waste water produced in our production process therefore helps the Water Board’s treatment plant to clean water.

          CHAIN RESPONSIBILITY AND HUMAN RIGHTS

          CSR risks

          Our fruit and vegetables often come from high-risk areas in terms of CSR. Although certificates are important, they do not always offer the guarantee that we seek. For this reason, we visit our suppliers frequently. In addition, all of our suppliers sign our Code of Conduct, which includes criteria relating to the environment and working conditions. Nevertheless, we still cannot offer full guarantees.

          Transparency in the chain remains a challenge. For this reason, we aim for gradual improvement in this regard. We do this by charting specific CSR risks and translating them into more specific criteria in our audits, which we aim to carry out unannounced more often.

          Influence

          To reduce the risk of failed harvests, partly due to climate change, we are forced to work with many different suppliers. In addition, we buy Class 2 and 3 products, which are regarded as ‘outsiders’. Both of these aspects make it more difficult to exert influence as a single party. We therefore want to make dialogue and collaboration (e.g. with business relations who purchase Class 1 products) a more structural part of our processes.

          Of our suppliers, 90% have been audited according to the BSCI code or similar standards.

          90% of our suppliers have been audited according to the code of the BSCI or similar

          Raw materials are

          99,5%

          traceable

          100%

          of our suppliers have signed our Code of Conduct

          We visit 47% of our suppliers 

          personally for audits

          97%

          of our suppliers are Global GAP and GFSI certified

          OUR PEOPLE

          Staff composition

          * Estimated average based on total inflow and outflow

          Ages

          Flow-through

          Safety, personal development and good rewards

          We ask a lot from our people, and we are happy to reward them well for their efforts. In addition, we do everything we can to provide our employees with a safe working environment. We believe it is important for them to feel at home and to have opportunities for personal development. This also applies to our temporary employees, for whom we have a good flow-through scheme. After six months, a joint assessment will be made concerning whether the contract can be converted into employment. This year, we hired 18 temporary employees. It is important for our employees to feel heard and to reflect society.

          A few examples

          • Lowest salary is 125% of the minimum wage
          • Overtime paid out by at least 150% (temporary employees 120%)
          • Diversity among employees
          • Annual performance reviews
          • Annual appraisal interviews
          • Training budget per employee
          • Pregnancy policy with adapted tasks
          • Whistle-blower policy
          • Confidential Advisor
          • Works Council

             

          Active occupational health and safety service

          18 emergency response officers

          2 prevention officers

          Safety, health and environment training (VCA) for all Team Leaders

          18 temporary received permanent contracts in 2018

          Periodic occupational health medical examination

          Absenteeism 4.78%

          Daily monitoring of and follow-up on reports and incidents

          Vitality and sustainable employability

          With regard to health and personal development, the ageing workforce is posing an increasing challenge. Our employees are getting older and are having to work longer, and their tasks are often physical. To date, we have succeeded in finding suitable alternatives for employees whose original jobs have become too physically demanding. Nevertheless, we do not know how this will work out in the future. We consider it important to be prepared for these developments and to ensure that our employees are prepared as well. We have therefore started to address this issue by including sustainable employability as one of the CSR pillars in our policy.

          One of the options for offering more flexibility to our older employees involves ensuring a good age distribution throughout the entire workforce. This year, we have succeeded in recruiting relatively more new colleagues in the younger age groups.

          Employees speak

          Are you proud of your work? Priscilla Beukers certainly is.

          Priscilla has been working at Hoogesteger since February 2018. She started as an operator and soon became a line coordinator. ‘At first, I thought I would never be able to do that. I would need a forklift certificate, and I thought that was only for men. But my team leaders encouraged me to take a course. Since then, I’ve been enjoying my work even more.’

          Sustainability is important to Priscilla. She has noticed that things are arranged well, especially at the location in Zwanenburg. In the cold-storage facility in Velsen, however, she noticed that juices were sometimes thrown away (‘Such a waste’). She also noticed that plastic was not routinely separated. On the other hand, the cold is sealed in, and everyone wears a bright orange coat to guard against the cold and to be visible to the forklift drivers. ‘And we recycle paper and cardboard.’

          Priscilla is particularly happy with her friendly colleagues and the professional team leaders, who take her seriously.

          PS: We are very happy to have critical employees like Priscilla. In the meantime, arrangements have been made to allow employees in Velsen to take along unsellable juices. We are also discussing the possibility of plastic separation with the owner of the building.

           

          What is it like to be a forklift truck driver at Hoogesteger? Lukasz Ajchel speaks.

          Crates, caps, labels—everything passes by on his forklift. Lukasz is also responsible for administration. ‘The variety of tasks is enjoyable, although it can sometimes be monotonous.’ Lukasz is pleasantly surprised to see how naturally waste is separated, how waste water is purified and how peels are used as animal feed. He was not familiar with these things in Poland.

          Most important, however, is the pleasant ambiance. Hoogesteger is a melting pot of cultures, and everyone interacts in harmony—from directors to production employees. ‘We are not treated as robots, and the managers are not aliens.’ Lukasz does not yet speak fluent Dutch, but he is well on his way, thanks to a language course offered by Hoogesteger. With his personal motto, ‘If you are flexible, the company will be flexible’, Lukasz feels that he is in the right place with his job.

           

          Hoogesteger and society

          As little inconvenience as possible

          Our production location is situated in a residential area. It is important to us that the residents experience as little inconvenience as possible. To this end, we installed a noise barrier a few years ago, with which we have been able to minimise noise pollution. Around Christmas and Easter, when extra production takes place and transport is coming and going day and night, we provide juices to local residents.

          Social activities

          Each year we contribute to ‘Spijkerdorp’ in Zwanenburg. Similarly, in 2018, we sponsored this event by donating 3,000 pallets. It is fun and impressive to witness what the children from and around Zwanenburg can build with these materials.

          As we do each year, we provided the village breakfast in Halfweg with juice, and we sponsored an artist’s performance at the festive week in Zwanenburg.

          Opportunities and knowledge development at Hoogesteger

          As a recognised training company, we offer learning programmes for students from a variety of study programmes. In addition, we regularly work with interns. In 2018, we had four interns in the following departments: Supply Chain, Quality Service and Product Development.

          We also try to deploy people who are at a distance from the labour market wherever possible. For example, one person we employed through the Disablement Assistance Act for Handicapped Young Persons has now been with us for more than 25 years.

          Food safety

          Food safety is of the utmost importance. All of our suppliers are Global Gap and GFSI certified. Food safety is paramount in these certification schemes, as well as in our audits of suppliers. Hoogesteger itself is certified at BRC A grade and IFS higher level, and we have volunteered for unannounced audits. This demonstrates that we produce our products at the highest level of food safety.

          Innovation and the Bijen is Leven foundation

          Innovation and sustainability go hand in hand. We have therefore developed a new product line in which part of the returns of every product sold is donated to the Bijen is Leven (Bees Are Life) foundation.

          In addition, we continue to develop and use innovative pressing techniques, while following trends and continuing to expand our knowledge in the field of ingredients. This has led to healthier juices, including vegetable juices and juice drinks with a lower sugar content.

          WORKING TOGETHER ON CSR

          Sustainable entrepreneurship starts within your own organisation. Real impact is thus realised together. With regard to food safety, innovation and knowledge development, we work with a variety of parties, including Eurofins, Allergen Consultancy, I3 Food, Food Tech Brainport in Helmond and KTBA. With regard to our PEF and HPP fresh-keeping techniques, we collaborate with Wageningen University and the Deutsche Institut für Lebensmitteltechnik. By maximising shelf life without sacrificing freshness, we can prevent waste. Now that we have formulated our CSR policy, we are eager to share our objectives with our partners and identify opportunities for working together.

          Our CSR team

          We have been very pleased to get started with CSR in the past year—and obviously to be able to present our initial results in this second CSR annual report. Our enthusiasm has apparently been contagious, as we have been able to strengthen the CSR team with Sanne and Johan. Sanne is responsible for purchasing packaging, and Johan focuses on the logistics in the chain. It goes without saying that we are happy to have them on our team.

           We would also like thank you, as a reader of this report, for your involvement. Any questions, suggestions and ideas about this report or about CSR in general are very welcome. We would like to hear from you at Renate.Ludeking@Hoogesteger.nl.

          From left to right in the picture: Frank Kooter, Sourcing Manager – Meta Onrust, Manager HR – Johan van der Veer, Manager Supply Chain – Sanne van de Wiel, Buyer – Edo Abels, Managing Director – Richard Vrugt, Manager Operations – Renate Ludeking, SHEQA Manager

           

          JUSTIFICATION

          Information on the annual social report

          Commitment GRI

          This annual social report is based on the latest generation of guidelines in the Global Reporting Initiative (GRI). These guidelines have been applied at the SRS Referenced level. The report has been reviewed by the organisation itself, and it has not been verified by external parties. The GRI table is included as an appendix.

          Scope of the report

          This report covers the activities of Hoogesteger in the year 2018. No significant changes have taken place during the reporting period with regard to the size, structure or ownership of the organisation.

          Report frequency

          It is our intention to present a report annually.

          Contact

          If you have questions about this report, please contact Renate Ludeking, SHEQA Manager.

          Our juices are cold-pressed daily, raw and unpasteurized

          Full of nutrients and vitamins.

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          Contactdetails

          Domineeslaan 93
          1161 BW Zwanenburg

          info@hoogesteger.nl
          +31 20 407 30 00