CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

CSR annual report Hoogesteger 2019

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,
  • the use of water to wash them,
  • the manner of cooling the environment in which raw materials are pressed and stored,
  • 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.

For 2017, 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 CO₂footprint in 2019 is equal to:

  • The energy consumption (gas and electricity) of 511 households, or
  • 1,474 round-trip flights to New York City.

 In 2019, we took the following measures to reduce our energy consumption:

  • Purchase of frequency-driven air compressors.
  • Purchase of a frequency-regulated labelling line equipped with LED lighting.

Other 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 CO₂.
  • All doors are designed to minimise the outflow of cold air.
  • The production location is equipped with LED and automatic lighting.

Our CO₂footprint for 2019 increased by 28% relative to 2017. Our production increased by 29%. In relative terms, our footprint has thus decreased slightly. In 2018, our footprint was slightly higher. This was mostly due to circumstances that required us to fly more in that year. This returned to normal in 2019.

CO₂-footprint for Hoogesteger 2019

Total 2.543 tonnes CO2

    Relative development of the CO₂ footprint

    Emissions (in tonnes per million litres of juice produced)

    CO₂emissions in the chain

    Transport

    A large share of our CO₂ emissions in the chain is caused by transport. To minimise these emissions, we use 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. 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.

    Upstream

    For the majority (80%) of our raw materials, we calculate the annual volume of CO₂ emissions due to upstream transport (i.e. from the supplier to our production location). The following overview clearly demonstrates the relationship between emissions resulting from transport and the emissions from our own production location. These figures do not include road transport in the country of origin.

    Our carbon footprint in relation to CO2 emissions from transport

    • Footprint (Scopes 1 and 2) 2019: 2.543 tonnes 25.43% 25.43%
    • Transport upstream (part of Scope 3) 2019: 8.687 tonnes 86.87% 86.87%

     Downstream

    For transport from our production location to the customer, we work with transporters who operate as sustainably as possible. For example, our neighbour and main transport supplier, Heinis Logistics, uses only Euro-6 trucks.

    In addition, we are continuously working to improve our logistics, with the goal of delivering our juices to our customers as quickly and as fresh as possible, with as few trips as possible. By cooperating more efficiently within the chain, we have been able to achieve the following improvements:

    • Delivery time within the chain has been reduced by 0.8 day, with the remaining THT available to be used for the customer.
    • The number of shuttle trips has been reduced by 57% by eliminating a link in the chain, and the number of barrel trips has been reduced by 37% by coupling barrel trips to out-going trips.

    Increase in load factors

    for transport to our logistical partner XPO

    relative to base year 2017

    2019: 6%

    2018: 3.8%

     

    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. Again this year, one of our partners has achieved a fine result. FruitMasters, the largest fruit cooperative in the Netherlands, installed 7,000 solar panels. They achieved this using a growth voucher from the Oost NL development company and a SDE+ grant.

    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.

    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 2019 total 17,161 tonnes (in %)

      Disaggregated by destination

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

        Disaggregated by destination

          Destination residual flows 2017 – 2019 (%)

          Total waste 2019: 1,575 tonnes,
          excluding residual flows (in %)

            Waste flows

            • We received a new pressing machine in late 2018. It has delivered on the investment. Our total waste flow has decreased by 30% relative to 2018, while our production has increased by 7%.
            • We were able to use 95% of this waste flow as livestock feed, as compared to 55% in 2018.  
            • This left 5% over for conversion to biogas through fermentation, as compared to 45% in the previous year. 

             Industrial waste

            • Our industrial waste is separated and recycled as much as possible by an external party, Recycling.nl.
            • Our total volume of waste increased by 4% relative to 2018, against a 7% increase in production.
            • 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 17% (as compared to 18% in 2018 and 20% in 2017)
            • Part of our plastic waste has been used for high-calorie incinera.

            Packaging

            • In 2019, 90.5% of our bottles were packed in recycled cardboard. This had been 43% in the previous year, thus translating into an improvement of 47.5%.
            • See the section later in this report with regard to the use of R-PET for our bottles.
            • The wooden crates in which our oranges arrive are either returned to the circuit or shredded for use as fuel.

            Ladder of Moerman

            The increasingly higher-quality use of our waste streams is a matter of constant attention. We were able to make a major stride in this regard by purchasing our new pressing machine. These improvements have been achieved by reducing the total waste streams—thus leaving more for human consumption—as well as through the use of almost all remaining waste for livestock feed.

            Although we had obviously expected improvements, the returns on this substantial investment turned out to be even better than expected. We are obviously thrilled with this result.

            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. In 2019, this share unfortunately decreased again to 31.3%, due to a capacity problem at the Food Bank.  

            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 addition to recycled PET (R-PET), we are exploring possibilities for reduction. Whereas we were able to save 8% in 2018 by reducing the weight of our litre bottles by 3 grams, we addressed our 500 ml and 250 ml bottles in 2019. We were able to reduce the weight of these bottles by 3 grams and 1 gram, respectively, which translated into an additional plastic reduction of 7% plastic in 2019. In absolute figures, this amounted to 45,000 kg less plastic.

            In addition, we cooperated with our customers to convert 4 of the total 17 bottles in our assortment to recycled plastic. This had already been done for two bottles. The result was an R-PET volume of 35% in 2019.

            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.

            This year, we were able to reduce the water consumption per litre of juice produced by 10%. This was largely due to our new pressing machine. Because the vegetables and fruit are now fed directly into the machine, without first going through the peeler, less cleaning is needed. 

            The decrease in 2018 we achieved mainly by adopting economical water use as a critical performance indicator (CPI) for the cleaning company with which we work. The decrease of 0.3 litres in 2017, as compared to 2016, we achieved through efforts including adjusting our reels and replacing spray nozzles in machines with more efficient versions.

            Water consumption per litre of juice produced

            2019: 3.5 litres

            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. We cannot exercise much influence in this regard. This is related to two aspects that make us less interesting to separate suppliers. 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’.

            ICSR Food Products Covenant

            Last year, our sector organisation (FNLI) signed the ICSR Food Products Covenant. This created the opportunity to address risks within the chain, with the cooperation and assistance of ICSR (international corporate social responsibility organisation). This year, we completed a self-assessment, which confirmed that we are already investing considerable effort in the area of ICSR. It also provided us with insight into the manner in which we can go even further in incorporating ICSR into our business operations. In response to this self-assessment, we have established an improvement plan. We will start by adjusting our purchasing policy and our purchasing documents. This will ensure that our policy also reflects our attention to ICSR. By including ICSR in our purchasing documents, we will be imposing supplementary requirements on our suppliers.

            99% of our suppliers have been audited according to the code of the BSCI or similar (relative to 90% last year)

            Raw materials are

            99,5%

            traceable

            100%

            of our suppliers have signed our Code of Conduct

            We visit 56% of our suppliers 

            personally for audits

            96%

            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.

            Staff conditions

            • 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

               

            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

             

            Mateusz is grateful for the opportunities that he has received

             

            ‘I do have to put on my hairnet in order to transfer this juice’. Mateusz Sterecki knows the procedures. Since early 2020, he has been an assistant in the NPD department at Hoogesteger. One of his tasks involves developing new flavours and juices. The samples must obviously be made in the most sanitary way possible. This requires good work clothing.

            Mateusz is from Poland, where he studied food technology. Although he also found employment in that field, it turned out not to be what he wanted. Mateusz had the feeling that he would not be able to develop to the fullest within his discipline. Two years ago, therefore, he decided to seek his fortune elsewhere, and he ended up in the Netherlands. ‘A great country. Everyone here is cheerful. People greet you on the street, the weather is good. There’s freedom in the Netherlands. If you want to build a career, you can do it here,’ he adds optimistically.

            His career did not start in the discipline he had studied. Mateusz started as a production worker at Mars in Veghel. He later followed a friend to Zwanenburg, and was hired by Hoogesteger, where he started as a packer. It quickly became clear that he could do more. Team leaders in Velsen asked him if he would like to become an operator on the labelling line. This resulted in a permanent contract for Mateusz. He also learned how to drive a forklift. Then, a great opportunity arose in the New Product Development (NPD) department.

            He was hired for a position that matches his degree, and he is very happy with his job. ‘I learn new things every day. Each day is different’. One day, he might compare Hoogesteger juices to the competition. The next day, he might help to develop new flavours. At home, he practices English —‘I haven’t spoken it since primary school’—and Dutch—‘Because I need it in order to work here’.

            In a nutshell, Mateusz Sterecki is happy at Hoogesteger. He is grateful for the opportunities that the company has given him, and he is certainly planning to take full advantage of them.

             

             

            Niels is having a fine time

            ‘I had actually imagined an entirely different career for myself. But the way things have gone is also good’. Niels de Waard works in Technical Services at Hoogesteger. He could not have predicted that a few years ago.

            At the age of 17, he got a job in Defence. He was even sent abroad twice on foreign missions: including to Afghanistan. After 14 years in Army fatigues, however, he felt that it was time for something else. At first, he tried to follow an educational programme through Defence, but he was unable to complete it, due to the requirements of his job. Defence ultimately helped him to find VAPRO, where he started a process-oriented educational programme. He was seconded to the filling department at Hoogesteger.

            ‘After completing the VAPRO programme, I didn’t think that I’d keep working here as an operator. I was looking for something more exciting, perhaps at a larger company. And then, all of a sudden, HR approached me’, recalls Niels. They asked him whether he would be interested in a position in the Technical Services at Hoogesteger.

            He was indeed interested. After trying it out for about a week, both parties were positive, and Niels was hired for Technical Services. The independence and freedom were the most appealing aspects of the job. ‘And the variety. I might be working on the roof and then, an hour later, I’m on my back under a filling machine’.

            He actually thought that he didn’t have the knowledge he would need for the job. That is obviously not the case. He does have his hands full with continuing education. He is currently taking a course in Power Switching. He thus keeps learning, to his great satisfaction. Niels de Waard is happy at Hoogesteger.

             

            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

            With our sponsorships, we focus on local projects. Each year we contribute to ‘Spijkerdorp’ in Zwanenburg. Similarly, in 2019, 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.

            ‘Bijen is Leven’ Foundation

            To contribute to bio-diversity, we 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. Each year, we donate at least  €1,500 to this foundation, and they maintain three apiaries for us.

            In addition to caring for the health and growth of the bee colonies, Bijen is Leven makes the public aware of the importance of bees. It also provides recommendations for vegetation and insect-friendly management (e.g. for a military airport).

            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 2019, we had two interns. One in the Quality Service department and one in the Product Development department.

            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 took place for the first time in 2019. This demonstrates that we produce our products at the highest level of food safety.

            WORKING TOGETHER ON CSR

            Innovation and sustainability go hand in hand. We are constantly innovating in terms of our pressing techniques and the use of new, healthy ingredients. Real impact is 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.

            Extracting value from waste streams

            Since 2019, we have been participating in a project, in collaboration with Wageningen Food & Biobased Research (WFBR) and a number of other companies. The objective of the project is to use pectin and chitin from waste streams to make functional, high-value ingredients for food, as well as for domestic purposes and personal care. This corresponds to our CSR objective of extracting the greatest possible value from our waste streams. In addition to making waste streams available to this project, we contribute €10,000 each year.

            How does the technique work, and what is the benefit?

            Pectin is abundantly available in waste streams (e.g. from the potato or fruit-processing industry), and chitin is plentiful in sidestreams of the processing and fermentation industries for crustaceans and shellfish. The isolation and valorisation of these polysaccharides is an important step towards waste reduction and economic growth within these industrial sectors. Moreover, it implies greater efficiency in the use of agricultural land and marine resources. As a company with large volumes of residual waste, we are happy to contribute to these efforts.

            MVO Nederland

            To stay abreast of specific developments in the area of CSR and to come into contact with other parties who are interested in continuing to invest in these efforts, we have joined MVO Nederland (CSR Netherlands).

            Our CSR team

            Over time, CSR has become firmly embedded within our organisation. All departments contribute to these efforts, and good ideas are proposed by our employees. We are therefore quite pleased with the results that we have achieved in 2019, which we are presenting in this, our third CSR report. We would like to thank everyone, both within and outside Hoogesteger, for their involvement and for reading this report. 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 Core 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 2019. 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, renate.ludeking@hoogesteger.nl.

            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