< Previous10 SUSTAINABILITY REPORT 2018 Sustainable Development Goals (SDGs) and FRoSTA Which of the 17 United Nations (UN) Sustainable Development Goals (SDGs) are most significant for us and our most important stakeholders – our employees, customers, suppliers and our social environment – and where can we make a real difference? We addressed this question during several workshops in 2017 and 2018 and identified the following SDGs as essential and relevant. In doing so, we are concentrating on measures and goals that affect our core business, i. e. production and sale of frozen food. SDG 2 ZERO HUNGER End hunger, achieve food security, improve nutrition and promote sustainable agriculture FRoSTA is one of the largest producers of frozen vegetables in Europe (organic or conventionally grown). This allows us to influence how vegetables are cultivated. We give conven- tional farmers strict guidelines, from seeds to the use of fer- tilizers and pesticides to tillage For organic farmers, all this is stipulated under EC Organic Regulations. SDG 4 QUALITY EDUCATION Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. We train for various professions in all our plants, such as investing in our own junior managers with our in-house trainee program. We promote "learning on demand" and offer many further training courses and e-courses that can be taken regardless of time or SDG 5 GENDER EQUALITY Achieve gender equality and empower all women and girls With over 1,500 employees from 30 nations, of whom 37% are women, we have both the responsibility and the power to influence equal opportunities and are in favour of a strong stance against any form of discrimination. Our goal is to increase the proportion of women in the top three manage- ment levels to 30% by 2025 In order to detect discrim- ination at an early stage, we appointed a "diversity officer" at the beginning of 2019, who is available to employees as someone they can trust to support .11SUSTAINABILITY REPORT 2018 SDG 7 AFFORDABLE AND CLEAN ENERGY Ensure access to affordable, reliable, sustainable and modern energy for all We consume energy for the production, shipping, pro- cessing and storage of our products. We can exert a direct influence by further increasing the energy efficiency of our production facilities and increase the proportion of renewable energy used at our To this end, we have set ourselves SDG 8 DECENT WORK AND ECONOMIC GROWTH Promote sustained, inclusive and sustain- able economic growth, full and productive employment and decent work for all We are responsible for our own employees and the working conditions at our suppliers. The promotion of creativity and entrepreneurship is firmly anchored in our corporate values. We invest continuously at all our locations, thereby increasing our productivity. We are committed to sustainable production and set our- selves goals for continuous . Our goal is to continue to grow profitably and thereby secure jobs as well as by investing in the training of our own junior staff. Our "Code of Conduct", which every supplier must sign, regulates working conditions and insists on compliance with those conditions. It is also required for suppliers from BSCI risk countries and checked by means of social audits. In we contract with our sup- pliers, among other things, that the wages and benefits for their workers must at least meet the legally required and industry-standard minimums and not only cover the basic needs of the workers and their families, but also provide them with freely disposable SDG 10 REDUCED INEQUALITIES Reduce inequality within and among countries Our internal QM manual prohibits any form of unfair treat- ment and discrimination, both of our employees and of third parties. With regard to the employees of our suppliers, equal treat- ment is also laid down in the Code of Conduct. At our largest location in Bremerhaven, we contribute to the integration of refugees by offering them the opportunity of an internship with the prospect of an apprenticeship. In addition, we are also involved in the project in SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION Ensure sustainable consumption and production patterns We publish the CO2 footprint for each FRoSTA dish and include on the packaging the countries of origin for all ingredients Our packaging is recyclable, we do not use aluminium or plastic wrap for FRoSTA Gourmet Fillet and we have reduced the weight of our packaging by 10% . Frozen food is a good way to prevent food waste because frozen food is rarely thrown away due to its long shelf life. Many FRoSTA products can also be portioned as desired. All organic waste from our production goes to a biogas plant. We donate the remainders of our stock to social . Every two years we publish our sustainability .12 SUSTAINABILITY REPORT 2018 SDG 13 CLIMATE ACTION Take urgent action to combat climate change and its impacts We calculate and publish the CO2 footprint for each FRoSTA dish and also use this information to develop new dishes. Every two years we compile and publish a and set ourselves targets for further reduction SDG 14 LIFE BELOW WATER Conserve and sustainably use ocean, sea and marine resources for sustainable development For our brand FRoSTA we exclusively use fish from sus- tainable, MSC certified and in addition we cooperate with a small, regional fishery from the North Sea whose standards go way beyond those of the MSC cer- tificate. For example, they use even larger net meshes Our CO2 reduction target helps to achieve i.e. minimising ocean acidification. reduction of plastic waste in water, is highly relevant. Above all, we are contributing to this by further reducing plastic packaging and improving recyclability. SDG 15 LIFE ON THE LAND Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and halt biodiversity loss We do not use palm oil in any of our FRoSTA prod- ucts. In the future, we will focus even more sharply on pre- serving biodiversity and formulate concrete goals for this as 13SUSTAINABILITY REPORT 2018 Relevance for FRoSTAhigh high R elev anc e for stak eholder s Materiality matrix Biodiversity Cooperations with our suppliers Stakeholder involvement Animal welfare Sustainable suppliers Fair employment Crises management Employees health Compliance Social commitment Lifecycle management Innovations Consumer information & communication Water & Sewage Market presence Climate protection & energy Health & product safety Diversity & equal opportunities Sustainability management Economy Ecology Social Multiple We held three workshops in 2017 and 2018 attended by around twenty employees from our sustainability team. We also invited our colleagues from Poland and Italy to get involved during these workshops. We discussed in detail which sustainability issues are important for us and our stakeholders and which ones we will have to tackle more intensively in the future. A description of our management of sustainability can be found in our first EMPLOYEES • Discussions and exchanging views on sustainability issues on our "myFRoSTA!" intranet • Surveys on cooperation and appraisal by superiors • Sustainability workshops and information events • Suggesting social projects via “myFRoSTA!” • Regular "Townhall Meetings" on results and strategy CONSUMERS Discussion and feedback opportunities: • Social media (Facebook, Instagram, Blog, Twitter) • Consumer helpline • Product reviews on www.frosta.de • Sensory tests NGOS Exchanging information on the following topics with various non-governmental organisations (NGOs): • Animal welfare • Packaging • Nutrition labelling • Food declarations • Sustainable fishing • Climate & Mobility • Social Projects SUPPLIERS • Suppliers Day October 2017 • Supplier visits and audits Materiality matrix and stakeholders14 SUSTAINABILITY REPORT 2018 FRoSTA’S OWN VEGETABLE PROCESSING Climate protection & energy, health & product safety, waste water, fair employment, diversity & equal opportunities, compliance direct responsibility FRoSTA’S OWN VEGETABLE CULTIVATION IN GERMANY (27 % OF ALL RAW MATERIALS) Biodiversity, traceability all the way back to the field, water quality, climate protection & energy, health & product safety direct responsibility PROCESSING AT SUPPLIERS Social standards/sustainable suppliers, cooperation, climate protection & energy, health & product safety, compliance indirect responsibility SHIPMENT TO FRoSTA Climate protection & energy indirect responsibility SOURCINGPROCESSINGTRANSPORT VEGETABLE FARMING, FISHING AND HUSBANDRY Biodiversity, water quality, sustainable suppliers, sustainable fishery, animal welfare, cooperation along the supply chain, health & product safety indirect responsibility Our responsibility: From seed to waste disposal (yellow bin bag in Germany) Our supply chain starts with sowing and ends with our customers… in the kitchen. We have a direct responsibility for sustainability in all our production plant processes. We can only have an indirect influence on what happens at our suppliers, in the retail trade and at the consumer end. The following chart shows which sustainability issues are important in each case:15SUSTAINABILITY REPORT 2018 CITY, MUNICIPALITIES AND SOCIETY Social commitment, stakeholder involvement We are involved in social projects at our four production sites and in the countries of origin of our ingredients. We are also committed to consumer-friendly food labelling. And we ensure greater transparency in the food indus- try by letting journalists and television teams take a look behind the scenes. WASTE DISPOSAL Recycling indirect responsibility TRADE PARTNERS Collaborations, market presence, compliance indirect responsibility CONSUMER Consumer information & communication direct responsibility DISPOSALTRADEPRODUCTION PACKAGING MANUFACTURER Climate protection & energy, health & product safety, sustainable suppliers indirect responsibility FOUR FRoSTA PLANTS Fair employment, diversity & equal opportunities, climate protection & energy, health & product safety, innovations, sustainability management, compliance, lifecycle management/recycling direct responsibility16 SUSTAINABILITY REPORT 2018 SUSTAINABILITY GOALSBISSDG PRODUCT QUALITY AND SAFETY Reduce the complaint ratio by 20% (calculated based on the number of complaints received against FRoSTA brand products in ppm) 202012 Development and phased implementation of a FRoSTA animal welfare standard, which promotes animal health by supporting the natural behaviour of the animals and focussing on good stable management. This goal replaces the goal from 2016. We are now focusing more strongly on animal health. 2022 Increase the share of fish sourced from the North Sea by 20% compared to 2018.202014 ENVIRONMENT AND CLIMATE Long term goal: continue to reduce specific greenhouse gas emissions related to the manufacturing of our products. Our long-term goal is to achieve completely carbon-neutral manufacturing processes. Interim goals: 7, 12 Reduce the FRoSTA Group's specific CO2e emissions (CO2e/tFW) (Scope 1–3) by 7.5% compared to 2018. Unfortunately, with a reduction of only 1.9% we did not achieve our target of –5% (2013–2017). See also our 20227 Reduce business travel inc. company vehicles (in pkm/t FP) by 20% compared to 2018. We reached our reduction target of 5% (2013–2017) with a value of –8.8%. 20227 Reduce CO2e emissions of the FRoSTA fleet by 5% per year. This goal replaces our goal from 2016 "Average emissions from FRoSTA AG fleet max. 95g CO2/km”. Instead of relying on the manufacturer's information, we now look at the actual CO2 emissions that we calculate based on the actual fuel consumption of our vehicles. 7 100% electric or alternate-fuel company vehicles.20257.2 Reduction of total meat content of all ingredients of FRoSTA products by 20% by 2022. This goal replaces the goal "Increase sales of vegan and vegetarian products from 30% to 40%" by 2020. We already offer a large number of vegetarian dishes. We now want to reduce the proportion of meat out of all ingredients used, as meat has a high carbon footprint. 202212 PACKAGING AND ENVIRONMENT Long term goal: Our packaging has no negative effects on humanity or the environment. Interim goals: Reduce materials consumption for outer packaging by 5% 202012 Ratio of folded boxes to foil bags at 50:50 202012, 14 Our goals for the future17SUSTAINABILITY REPORT 2018 SUSTAINABILITY GOALSBISSDG SUPPLY CHAIN 100% of our producers from BSCI risk countries have a regularly updated social audit according to an internationally accepted standard, accepted by FRoSTA (eg SMETA, BSCI or SA8000). This goal replaces the two goals for the More 20208 SOCIAL COMMITMENT Long term goal: We take responsibility for the living conditions in the regions of our plants and those of our suppliers and make a contribution to improving these conditions. Interim goals: 1, 4, 10 2% of FRoSTA AG’s dividends from the previous year are spent on social projects. Support for social projects at our four sites are selected by our employees. yearly Plan International: continuation and extension of the educational project in Ecuador by supporting 100 additional teenagers in three additional communities. 20211, 2, 4, 5, 17 Continuation of the FRoSTA culinary school for children in Bremerhaven with the goal, to teach more than 1,000 children per year how to cook. In addition, we want to host 20 intercultural cooking events for refugees and people from Bremerhaven with a total of more than 500 participants. 4 Integration of refugees by offering internships with the option for an apprenticeship 4, 10 JOBS/EMPLOYEES Long term goal: We take responsibility for the well-being of our employees. We offer attractive jobs and enable all of our employees to contribute their expertise and creativity. By 2025, the proportion of women in the first three management levels is 30%. This goal replaces the goal formulated in 2016 “We strive to achieve a balanced gender ratio at all levels”. 20255 Introduction of a company health management (BGM) in Bremerhaven and extension to the remaining locations in 2019. Implementation of three measures each to improve the health of our employees 3 Develop and introduce flexible employment models20205, 8 Introduction of a mobility concept for all employees with company cars in order to promote ecological and flexible travel 20198, 1318 SUSTAINABILITY REPORT 2018 SPAGHETTI CARBONARA – WITH BACON Bacon is treated with potassium nitrite (E249) to increase its shelf life and to give it its nice red colour. Unfortunately, without potassium nitrite, the bacon looks grey and goes off quickly. VEGETABLE PAN WITH BLACK SALSIFIES AND OLIVES Black olives are often coloured with E579, black salsifies are peeled with the help of alcaline solutions. Unfortunately, we could not buy these two ingredients without these two agents that do not need to be declared. E249 FISH PAN MARSEILLE WITH WHITE WINE White wine is treated with sulphite (E221), which is a preservative. Unfortunately, we just cannot find a suitable white wine without sulphite. So, no more Fish Pan Marseille since 2003. E221 Alcaline solutions E579 Products that, sadly, will never be available from FRoSTA … FRoSTA’s Reinheitsgebot has been in force since 2003. This applies consistently across all FRoSTA products and ingredients – without exception! We do this even when we are making life difficult for ourselves. Our consistent refusal to use any additives, fla- vourings and other artificial nasties means that there are products that we cannot offer because we cannot procure some of the ingredients without additives. Here are some examples. BAKED FISH – IN TRADITIONAL BATTER To make the classic batter you need baking powder, but since this is also an additive, namely E500, we don’t use it. E50019SUSTAINABILITY REPORT 2018 Why are FRoSTA products more expensive? with flavourings with colourings with emulsifier Margarine Butter FRoSTA‘s without beta carotene OUR BUTTER IS FOUR TIMES MORE EXPENSIVE THAN CONVENTIONAL MARGARINE from the lab Flavouring FRoSTA's stock traditionally cooked SEASONING A DISH WITH REAL STOCK IS MANY TIMES MORE EXPENSIVE THAN USING FLAVOURINGS PRODUCED IN A LABORATORY pure rock salt without additives FRoST A'S salt with iodine anti caking agents Conven- tional salt OUR SALT IS 60% MORE EXPENSIVE THAN CONVENTIONAL SALT Mechanically pressed FRoSTA'S sunflower oil chemically extracted Conven- tional sunflower oil OUR SUNFLOWER OIL IS 50% MORE EXPENSIVE THAN CONVENTIONAL SUNFLOWER OIL Using additives and flavourings makes food cheaper but rarely better. We have worked out how much more expensive our ingredients are now since the introduction of the Reinheitsgebot:Next >