< Previous20 SUSTAINABILITY REPORT 2018 Three most common positive and critical feedbacks What our consumers say 1. Why do so many ingredients come from so far away? 3. There was a piece of seashell in my paella! FRoSTA: "Of course this should not happen! Unfor- tunately, foreign bodies cannot be 100% avoided with natural products despite the greatest care taken.” FRoSTA: "Just as in every good restaurant the cook has the final say, it is like that at FRoSTA. For us, it's the taste that is most important although we do also keep an eye on the salt content.” 2. When I eat a bag of Bami Goreng, I have already consumed the daily amount of salt recom- mended by the German Nutrition Association (DGE). Schlemmerfilet without aluminium tray – super! Thank you for giving the country of origin on the packaging. Great concept, nice that FRoSTA doesn't use additives. FRoSTA: "We always buy from places where our vegetables grow and ripen best on open grounds and never ship them by plane, but by ship. Of course, vegetables from Germany are really our favourite source. That's why we grow many local vegetables ourselves. In any case, we ensure transparency and state the country of origin of all ingredients clearly on the packaging."21SUSTAINABILITY REPORT 2018 Sustainability in the supply chain the agenda were our expectations regarding compliance with social standards. We visit and audit our suppliers on a regular basis. We intend to increase the frequency of our unannounced social audits by 20% by 2020. We have slightly modified We don't expect a Sedex membership from all suppliers anymore, because we realised that this means big bureau- cratic hurdles that are especially difficult for small suppli- ers. More important to us than formal Sedex membership is that all suppliers from BSCI risk countries are subject to a regularly updated social audit according to an internationally recognised standard accepted by FRoSTA (e.g. SMETA, BSCI or SA8000). How do we ensure that all our suppliers don’t just sign but also consistently comply with The basic prerequisite for this is our direct and regular contact with them. At the end of 2017 we invited our suppliers to attend the first "FRoSTA Supplier Day" in Bremerhaven for two days. Over 100 suppliers from 19 countries took part, including many from the BSCI risk countries. At the top of days of travel by our employees to our suppliers in 2017 and 2018 Time we spent in 2018 weighing and mixing our curries instead of buying in finished curry blends: 416 hours ... Romania Netherlands Spain China Italy Switzerland Ecuador Brasil Hungary Denmark Serbia Portugal Thailand Belgium USA Czech Republic UK Peru22 SUSTAINABILITY REPORT 2018 Climate and environment CLIMATE PROTECTION: OUR LONG-TERM GOAL IS THE CLIMATE NEUTRALITY OF OUR MANUFACTURING PROCESSES� Unfortunately, we did not of reducing specific CO2e emissions by 5% compared to 2013. This is primarily because transportation between our four loca- tions increased due to relocations and secondly because we have invested heavily in new facilities at all locations and these facilities have not yet been operating efficiently in the first few months after commissioning. Since both are temporary effects, we have set ourselves the target of further over the next few years. COOKING YOURSELF VS. FRoSTA DISH The CO2 footprint is about the same because it is mostly vegetables from heated greenhouses that are used when cooking fresh. This can be set off against the higher emissions from the storage and transport of FRoSTA products. OUR TOMATOES always come from outdoor cultivation, mainly because they taste better that way. In addition, they have a significantly lower CO2 footprint. Tomatoes from outdoor cultivation 0.24 k CO2/k Source: GEMIS 4.2/Uni Gießen Tomatoes from greenhouses heated by fossil fuels 9.2 k CO2/k BROCCOLI Our broccoli comes from Ecuador and many of our customers are afraid that the CO2e footprint is much higher than that of Euro- pean broccoli: But that's not true! Broccoli from Ecuador - Transport by ship - Two harvests per year - Fields are cultivated by hand 570 CO2/k Broccoli from Spain - Transport by truck - Only one harvest per year - Fields are cultivated with machines 600 CO2/k CO2 FOOTPRINT Of all FRoSTA dishes, our new beetroot & sweet potatoe pan has the lowest CO2 footprint, the wild salmon in a puff pastry the highest. 713 CO2 /100 160 CO2 /100 GEMÜSE PFANNE MIT ROTE BETE & SÜSSKARTOFFELN23SUSTAINABILITY REPORT 2018 NO ALUMINIUM Our FRoSTA Schlemmerfilets are not supplied in aluminium trays. In 2018 we saved 492 tons of alumin- ium. This corresponds to the weight of about 1094 male polar bears. TRAVELLING Overall, we travel less, fly less frequently and travel more by train. This is the summary of our travel activities since 2013. We have invested in modern video technology at all our loca- tions and have therefore been able to avoid many trips. The only exceptions are long-haul flights because we have had to increase our supplier visits and audits. From 2019, our company car users will no longer automat- ically receive a car but a mobility budget. They decide for themselves whether they want to spend it on a car, a bicycle or a rail card. What is left may be used for private purposes. In this way, we create incentives to travel less and more economically. PACKAGING AND ENVIRONMENT Our aim is to continuously improve the eco-balance of all our pack- aging. In 2016, we converted our packaging in Germany to a new, recyclable mono-material and reduced the CO2 emissions of the packaging by 20%. Rail journeys 2018/2017: +20% Car journeys 2018/2017: –12% Short flights 2018/2017: –7% Long-haul flights 2018/2017: +17%* Total trips 2018/2017 (in pkm): –10% LESS PACKAGING Due to the conversion, FRoSTA bags were also 10% lighter. In 2018 we saved 710 tons of packaging – this corresponds to about 30,870 female emperor penguins. SCHLEMMERFILET WITHOUT PLASTIC FOIL We put our Schlemmerfilet directly into the packaging – without using any cling film. In 2018 we saved about 484,000 square meters of plastic foil. This would cover about 68 football pitches. 68 FOOTBALL PITCHES484,000 QM PLASTIC FOIL 12 34 56 78 91 01 1 492 TONS OF ALUMINIUM 1.094 POLAR BEARS *on a low basis of only 17 long-haul flights 24 SUSTAINABILITY REPORT 2018 "I come from Afghanistan and I took part in the 'Über Den Tellerrand Kochen' initiative a year ago where I got to know some FRoSTA apprentices. After finishing the qualifying year, I will now start my own apprenticeship at FRoSTA in August.” Yaser, 1st apprenticeship year FALET (Specialist in food technology) Social commitment "With our annual donation budget of 2% of the total dividends, we support social projects at our sites and in the origin countries of our ingredients." DONATIONS Our employees decide which projects we support at our locations. Over the past two years, these have mainly been projects for children, such as the "Rückenwind" association in Bremerhaven Lehe, the financing of the "Bäderbus" (free bus trips to public swimming pools) in Lommatzsch and the support of sports clubs for the integration of refugee children. In Bydgoszcz, Poland, we supported the “Dr. Clown Foundation” and two children's hospices. FRoSTA CULINARY SCHOOL IN KLIMAHAUS In 2018 more than 1,000 children took part in cooking courses in the at Klimahaus in Bremerhaven. More than 700 people from different countries came together to cook Syrian, Afghan, Iranian, Iraqi, Kurdish and German delicacies over nineteen 19 Cooking events 700 participants from more than 10 nations not only looked but also cooked "Über den Tellerrand" in the FRoSTA cooking school in 2018. afternoons in the FRoSTA Culinary School during the initiative. By supporting these events, FRoSTA contributes to the integration of refu- gees in Bremerhaven. More than 1,000 children took part in cooking courses in the "FRoSTA Culinary School" in 201825SUSTAINABILITY REPORT 2018 "We are convinced that trade is the right way for providing development aid. Aid often leads to dependency and passivity. If all the coffee Ethiopia exports were processed in the country, then more than 280,000 jobs would be created within the country. That would achieve far more than all the classic development aid projects." Felix Ahlers, CEO, speaking about the Solino project SOLINO We help the coffee brand to sell roasted coffee in Germany and thus generate more added value and better jobs in Ethiopia. Solino's goal is to create 1,000 qualified non-agricultural jobs in Ethiopia. "We actually made it! We have our own bakery. We worked together with everyone, the members of the club, the leadership and our parents. A dream came true for us and we have to develop this dream – for us and for our families." Yadira, 17, San Isidore, Ecuador, participant of the Plan training project 2017/2018 PLAN INTERNATIONAL The two-year we implemented in collab- oration with Plan International in Ecuador has come to its conclusion. Over the course of two years, 200 young people were taught how to develop and implement their own business ideas. In six different communities a total of three bakeries with delivery services as well as three small businesses with vegetable cultivation and chicken breeding were established, all of which are run by young adults who attended the project. Encouraged by this success, we decided to continue our commitment with Plan International in Cotopaxi (the region in Ecuador where we have been buying our broccoli for over 20 years). 19 tons of food donations in 2018 © P la n Int er na ti ona l26 SUSTAINABILITY REPORT 2018 FRoSTA supports the petition of the German Additives Museum. It is all about making three concrete demands regarding the policy for more transparency with food: "We support the demands of the petition, because the current food laws prevent consumers from being able to distinguish between qualitatively completely different products. Essential information is currently only available to the manufacturers or additive suppli- ers themselves. And that needs to change urgently." Hinnerk Ehlers, Head of Marketing, Sales and Human Resources Over the next two years, we will support the already estab- lished companies alongside the children's aid organisation as well as training more young people in other communi- ties in Cotopaxi. By the way, our trainees are the ambassadors of our Plan project! They also take care of the communication with our 14 Plan sponsored children, who are also all from the Coto- paxi region. SUSTAINABLE CONSUMPTION AND CONSUMER EDUCATION In 2018, we launched a major MSC (Marine Stewardship Council) awareness campaign for sustainable fishing in Poland. FRoSTA is the only frozen fish brand in Poland that guarantees 100% fish from MSC certified sources. We support in Hamburg. Here visitors learn why more than 6,000 different additives are used in our food and how to decipher the lists of ingredient. With six events about sustainable fishing in big Polish cities we reached Thousands of consumers.27SUSTAINABILITY REPORT 2018 Employees RECRUTING & RETENTION In the last 2 years we have built up a young and competent recruiting team in our personnel department because suc- cession planning coupled with a shortage of skilled workers will be a major issue for us over the next few years. We have achieved our goal of developing a first-class trainee program for all corporate divisions with currently ten trainees in six demanding programs. This enables us to train our own junior managers in all areas. Also new is our company health management system (BMG), which we launched at our Bremerhaven site in 2018. The expansion of the program to our other locations is planned for 2019. Through measures such as ergonomic analyses, health days, sports activities and preventative stress man- agement programs, we aim to ensure the long-term health and well-being of our employees at all locations. INFORMATION, COMMUNICATION & FEEDBACK Information, communication and feedback are important prerequisites for high motivation and commitment. Our intranet, to which all employees have access, enables direct, hierarchy-independent communication on a daily basis. Colleagues from different departments regularly present current questions and results in our own "Web Cast" the "FRoSTA Results News Channel". Several times a year, the Executive Board members provide live information on our results and strategy in the so-called "Town Hall Meetings". All employees in the administrative sector and all salaried employees with employee responsibility receive honest and constructive feedback from their superiors during the annual performance reviews. "We take responsibility for the well-being of our employees. We offer attractive jobs and enable all our employees to make full use of their skills and creativity." " FRoSTA is the place you can grow and develop. Both business and personal wise." Anna Janik, HR Manager. Anna started her career at FRoSTA as an assistant 15 years ago.28 SUSTAINABILITY REPORT 2018 DIVERSITY AND EQUAL OPPORTUNITIES In order to do justice to the importance of diversity and equal opportunities at FRoSTA, we have had a Diversity Officer since the beginning of 2019, who will be specifically respon- sible for this topic in the future and is available as a confi- dential contact person. In Bremerhaven we set a visible sign for equal opportuni- ties for all: On the occasion of the International World Girls' Day, and initiated by our partner Plan International, build- ings and landmarks around the world were floodlit in pink on this day to draw attention to the still inadequate equal- ity of opportunity for girls in many countries. On 11 October 2018, our trainees in Bremerhaven not only ensured that for the first time ever our refrigerated warehouse shone a deep pink for 24 hours, they also took part in the worldwide "Youth Takeover" and directed FRoSTA for one day as a department manager, QA manager or head of PR. "Organising and implementing the World Girls' Day was a special experience for me and the other apprentices. I had the opportunity to have an interesting discussion with our sales manager in Bremerhaven about women in management positions and was also able to address the topic in the weekly sales meeting." Jacqueline Harmuth, apprenticed as Industrial Clerk "Diversity and inclusion at FRoSTA means accepting the diversity of our employees in all relevant dimensions, promoting it and integrating it into the company in order to achieve sustainable success. Diversity is the secret recipe for our future." Anna Mucha, Diversity Officer29SUSTAINABILITY REPORT 2018 Employees 20172018 FRoSTA Administration362409 of which administrative218245 of which operative 144164 FRoSTA Production Facilities1,3621,369 of which at Bydgoszcz 573577 of which at Bremerhaven 469442 of which at Lommatzsch 178201 of which at Bobenheim-Roxheim 142149 Group Total1,7241,778 Employees by age group 31.7% over 50 18.6% under 30 49.7% 30 – 50 68% industrial workers 32% salaried employees Employees by type of employment 63% male 37% female Employees by gender Employees by nationality Germany52.8% Poland32.4% Turkey4.3% Portugal4.3% Italy2.0% Ukraine1.0% Hungary0.5% Bosnia0.3% Croatia0.2% Serbia0.1% Other2.1% THE FRoSTA TEAM We are very proud to have an international team, that is growing more closely together each year. Please refer to for further information on our employee share program.Next >