2018 sustainability report - Nomad Foods
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Contents Introduction About this report This is Nomad Foods’ second Introduction Better Operations annual sustainability report, 4 Our CEO’s Message 24 Our Planet sourcing Better covering the period from January 5 2018 Sustainability Highlights 27 Packaging 6 Our Sustainable Path 28 Our People and Communities to December 2018. Our first report 7 Governance 28 Employee Wellbeing was published in spring 2017. 8 Our Supply Chain 30 Employee Health and Safety 9 Materiality 31 Diversity and Inclusion This report is influenced by the Global Reporting Initiative (GRI), Better Sourcing How We Do Business and includes standards defined by nutrition Better 11 Our Oceans 34 Food Safety, Quality and Traceability the GRI guidelines. 13 Our Fields 35 Corruption and Anti-Competitive 15 Our Ingredients Behaviour It meets the requirements of the 17 Our Supply Chain Ethics EU Directive on Non-Financial Better Nutrition Reporting. 19 Our Nutritious Food 21 Our Approach to Additives operations Better 22 Our Influence do business How we 2 | 2018 Sustainability Report
Better Better Better How we Introduction sourcing nutrition operations do business Introduction 3 | 2018 Sustainability Report
Our CEO’s message Introduction Welcome to Nomad Foods’ second sustainability report. I’m pleased to share our progress over the past year and to introduce our new sustainability strategy, Our Sustainable Path. sourcing Better Feeding a growing population sustainably, while seafood from sustainable fishing or responsible protecting the environment and biodiversity, is one farming by the end of 2025 to 100% of our consumer of the main challenges of our time. It is a challenge packaging will be recyclable by the end of 2022. that our consumers are increasingly concerned Measuring our progress is how we ensure about. They see the solution as a healthy and sustainability sits at the heart of our business on sustainable diet that is good for the environment a day-to-day basis and I’m proud of what we’ve and good for them too. It is a concern that I only achieved this year as outlined in this report, as expect to grow. well as the targets that we have set ourselves. I As Europe’s largest frozen food company, we are know that Our Sustainable Path puts us in the best nutrition Better determined to play a role in helping our consumers possible position to work towards a better future for eat sustainably. In 2018 we took a step back to both people and the planet. systematically assess our sustainability work and to determine our plan of action for the future. This culminated in the launch of our new Stefan Descheemaeker, sustainability strategy, Our Sustainable Path. It is a CEO European wide programme with the ambition of making a difference every day through affordable, sustainable food. We view what we do as contributing jigsaw pieces to the global efforts led operations Better by the UN and our new strategy focuses on where we can make a difference. We created our strategy by mapping our “We view what we do environmental and social impacts against the as contributing jigsaw UN’s Sustainable Development Goals and by building on the foundations we have established pieces to the global over the last 20 years. We identified three key efforts led by the UN and focus areas – better sourcing, better nutrition and our new strategy focuses better operations – and we have committed to on where we can make do business How we six ambitious targets to provide a clear sense of direction as we move forward; from 100% fish and a difference” 4 | 2018 Sustainability Report
2018 Introduction Sustainability Highlights Co-hosted SDG14 Life sourcing Better Launched Scored our new sustainability 90% Below Water 84 webinar to progress strategy, sustainably towards targets on Our sourced fish sustainable Sustainable and seafood raw material employee Path 95% engagement nutrition Better of our new to accelerate our product launches are in Our Voice Survey sustainability agenda Joined the healthier meal Sustainable choices Scored Launched Agriculture Top 40 Initiative Our operations Better in the 2% Well Way to roll out Dow Jones sustainable farming decrease a health and wellness programme Sustainability practices across all vegetable sourcing in carbon to support Index emissions our employees per ton of finished goods do business How we in own production 5 | 2018 Sustainability Report
Our Sustainable Path Introduction ER SOURCING In 2018, we launched our new sustainability strategy for Nomad BETT Foods: Our Sustainable Path. IN FISH AND V EADER EGE ISED L TAB Through extensive work with internal and external GN LE sourcing Better CO Our oceans SO stakeholders, we decided on three focus E UR E R C areas—better sourcing, better nutrition, better O ur fi eld s I TH operations—with a clear ambition to lead in NG ur in g re d ie nt BE material areas such as fish sourcing, sustainable O s vegetable farming and nutrition. To ensure progress, we have set time-bound targets in the ES six most material areas. And across these three OIC pillars, we hold ourselves to high standards on H governance, ethics and food safety. C nutrition Better DO M E GOOD, VE Our G POSITI Main UN Sustainable Development Goals that our strategy align with Sustainable O nc ditives R Path infl to a od SPIRIN BETTE fo ION d Ou Ou eo uni e Ou omm O oac ious T, IN r p pl ty rc MIN rp pr utrit ue h lan e DIE TRIT RO IMI ap r n et ED operations Better ZIN u ur O NC G ur NU PE LA O O UR NE BA RA G RE ER AT O IVE M O TI NS TA BE TT IM PAC S EA E T MILI HELP FA do business How we 6 | 2018 Sustainability Report
Introduction We spent 2018 embedding the strategy throughout Governance the business, using internal engagement sessions Our Executive Committee holds ultimate and webcasts, including targeted sessions for responsibility for Nomad Foods’ sustainability our Enterprise Leadership Team, and developing direction. To guarantee that we meet the action plans with dedicated teams. We will work targets set out in Our Sustainable Path, we have with partners throughout our supply chain to sourcing Better a Sustainability Steering Committee: a cross- achieve these commitments by 2025 at the latest. functional group chaired by our CEO, consisting We will ensure that new products lead the way in of seven members of our Executive Committee sustainability and will also use our media presence and representatives from different functions and and consumer communications to drive positive markets. Our Group Sustainability Director reports change. directly to the Chief Communications Officer, who sits on the Executive Committee and the Sustainability Steering Committee, ensuring that our business activities drive progress towards our “As the world population sustainability strategy. nutrition Better We want our strategy and commitments to grows and the demand be borne out in all new product development. for nutritious, sustainable Therefore, in 2018, we embedded detailed sustainability criteria into our NPD processes: a food increases, we need governance model for approving all new products to transform the way we in all markets. Products that do not comply with produce and consume food. our strict environmental and social standards are flagged by the system, and an action plan for We will play our part in that improvement must be developed in partnership transformation and have with senior management. operations Better shaped our new strategy to support the UN’s Sustainable Development Goals.” Annelie Selander, *per ton of finished goods from Group Sustainability Director our own operations do business How we 7 | 2018 Sustainability Report
Introduction Our Supply Chain Nomad Foods is a €2.2bn business Belgium, Finland, France, Germany, Ireland, Italy, have indirect control — for example when we the Netherlands, Norway, Spain, Sweden, Portugal purchase ingredients or products from another bringing together some of the and the UK. As a global company with a varied producer— we select suppliers who reflect our high biggest European frozen foods portfolio of fish and seafood, vegetable, chicken standards and agree to strict specifications. We and ready meal products, our supply chain starts also work in partnership with certification bodies, brands, including Birds Eye, Findus with securing raw ingredients and ends with our such as the Marine Stewardship Council (MSC), to sourcing Better and iglo. tasty products on our consumers’ plates. maximise our impact beyond our supply chain. We have direct operational control over many This year, we welcomed two new acquisitions to of the elements in our supply chain. This means 1. As we made both acquisitions in 2018, Aunt Bessie’s and our brand family: Aunt Bessie’s and Goodfella’s we design and implement policies, procedures Goodfella’s Pizza will be fully included in our 2019 sustainability report, when we can relate the development to a full calendar year of sales Pizza1. We work across 13 primary markets, led and processes to ensure that they meet all our data. We make an exception for palm oil, as the acquisitions resulted from our UK headquarters in Bedfont: Austria, requirements, including sustainability. Where we in more significant changes in this area. Primary Production Brands Consumers nutrition Better Fisheries and fish farms Farming >4mn (chicken, egg, households enjoying dairy, pork, beef) our meals daily Offices Employees Vegetables 164 operations Better 1/3 pur- 2/3 con- consumer contacts chased volumes tracted volumes Manufacturing Distribution daily on average through Nomad Retailers Consumer Production Careline Materials for sites packaging Food service Employees Other ingredients Export do business How we 8 | 2018 Sustainability Report
Materiality Introduction In 2018 we conducted a light-touch materiality assessment. We asked internal and external stakeholders—including representatives from within the company, customers and NGOs specialising in sustainable food, fishing and agriculture—to rank a range of sustainability issues in order of importance, and assessed their relative importance to our business and our ability to sourcing Better impact them through our value chain. Material Issues The chart is an illustrative representation of the results ➤ of our materiality assessment. All issues ranking within Responsibly sourced fish More important Human rights the top two thirds of both stakeholder importance & seafood and significant impact are covered in the report. We Animal welfare are not significant users of palm oil or eggs but have Nutritious profile of included them because of the level of interest from Employee health, safety portfolio external stakeholders. and wellbeing Some areas, such as food safety and quality, and nutrition Better Diversity & inclusion Energy & emissions legal and regulatory compliance, are fundamental Importance for stakeholders parts of how we do business and are covered in the Reducing food waste final section of this report. We also identified several Palm oil key principles for operating responsibly that we Egg standards Sustainable packaging Deforestation Sustainable agricultural apply to all aspects of our business— innovation, practices research, community impact and organisational Promoting plant- Employee training & based diets transparency. These are covered throughout the education Operational water & report where relevant to the issues being discussed. Responsible marketing waste management Labour & management The materiality assessment confirmed that our relations M new strategy covers the most material areas. We st o m operations Better will conduct a full materiality assessment in 2019 to at Soy er ensure that we continue to focus our efforts on the ia l is most important issues for our stakeholders and for GMO su es Artificial additives & the business. Locally grown preservatives produce Better sourcing Provision for alternative diets Better nutrition Better operations ➤ do business How we Impact of Nomad Foods More important 9 | 2018 Sustainability Report
Better Better Better How we sourcing nutrition operations do business Better sourcing 10 | 2018 Sustainability Report
Our Oceans Fish is an important ingredient to us—many of our most iconic and best-loved products are fish and fish products. Sourcing it responsibly sourcing Better is central to both the health of our oceans and the sustainability of our business. As the risk of overfishing already poses a serious threat to the health of marine life, it is imperative that responsible management and sustainable fishing practices are used to meet the increasing demand of fish globally. nutrition Better Aquaculture—the production of seafood in a farmed managed environment—is a growing industry and provides a way to reduce the the world. For the last 20 years, our brands have been working with the MSC to protect our oceans “Our aim is to transform the pressure on wild fisheries. Although there is a from overfishing and ensure the environmental market so that sustainable need to ensure that the environmental impacts of impacts of our operations are minimised. practices are standard, not aquaculture, particularly the use of wild fish stocks Part of our approach is to increase awareness of to create feed, are managed carefully, we believe the importance of choosing responsibly sourced the exception.” that responsible aquaculture has an increasingly fish amongst consumers and to make it easier for Andrew Papachrysou, important role to play. them to identify sustainably sourced fish when Procurement Director making purchase decisions. operations Better Our approach #1. We are committed to sourcing 100% of our fish from externally certified sources by the end of 2025. We are working towards this with long-term Our progress In 2018, we further increased the proportion of certified sustainable fish in our portfolio, driven by >90% partners including the Marine Stewardship Council both sales growth of existing products and new of fish and seafood (MSC) and the Aquaculture Stewardship Council product launches. We doubled our sales volume of (ASC), as well as our suppliers. ASC-certified products across Europe compared raw material is Nomad Foods is the largest branded producer to 2017 and launched eight new ASC-certified sustainably or responsibly sourced do business How we of eco-labelled wild-caught fish and seafood in products in 2018. 11 | 2018 Sustainability Report
In 2018, MSC assessed 14 of the largest fisheries we Ocean Festival in Oslo alongside the MSC to help and the farms we source from. In addition, we source from and found sustainability improvements consumers understand that their fish choices expect to see an additional one of our fisheries in all of them—from reducing the volume of matter. Findus Sweden also joined the MSC at the obtain certification as we continue to use our bycatch (the unintended catching of other fish Taste of Stockholm Festival. influence to keep raising the bar for sustainability species) to improving fish habitats. This is largely Transparency is important to our consumers. standards. due to the long-term commitments that fisheries Our Fish Provenance Tool, an online tool which sourcing Better have made to improving their operations and allows consumers to trace where their fish is from, to increasing demand from producers and operates in eight markets and we are developing consumers for sustainable fishing practices. plans to expand this as a means of increasing We have been working to introduce front-of- knowledge. pack eco-labelling to our certified products to underpin our commitment to only use responsibly sourced fish and seafood. As a result of this, 80% of Future Plans our sales volume is now MSC- or ASC-labelled. 2019 will be a key year in terms of progress towards In addition, our brands support local activities 100% sustainably sourced fish by 2025. We are to champion sustainable fish, such as Findus working towards a step change in certified farmed nutrition Better Norway participating in the annual Passion for raw material, in close collaboration with the ASC CASE STUDY SDG 14 Life Below Water webinar 703 Our oceans are suffering from in an online forum, to advocate for working with fisheries to achieve a host of issues, many of them ocean sustainability and promote MSC certification, and we are as a result of human impact. collaborative partnerships in setting out plans for group-wide operations Better Finding a solution is complex and progressing towards the targets. initiatives to combat plastic requires collaboration across the pollution and support ocean clean- Number of MSC/ board. That’s why, in November The webinar delivered a number ups, which are key activities for SDG ASC products across 2018, we partnered with the MSC of positive outcomes. Following 14.1. A collaborative approach is global portfolio2 and GlobeScan to host a global discussions on the importance of key to drive progress towards SDG webinar, discussing how we can farmed fish in meeting growing 14 as a whole, so we will continue work together to accelerate consumer demand for fish, we to work with other partners to find progress towards SDG 14: Life are developing an aquaculture solutions throughout 2019. Below Water. We brought together roadmap for our business. We are stakeholders from across the world also accelerating our efforts in 2. C ompared to 643 products in 2017 do business How we 12 | 2018 Sustainability Report
Our Fields As the number one frozen vegetable Our approach when to harvest vegetables, minimising food waste and preserving biodiversity as well as monitoring brand in Europe, it is essential that #2. We are committed to sourcing 100% of our quality and yield, and ensure adherence to our vegetables through sustainable farming practices we use nutritious vegetables grown by the end of 2025. We are already working closely high standards on pesticide use. We contract with third-party suppliers to procure the remaining in a way that minimises our impact with our suppliers to continue driving progress. part of our vegetable portfolio, and we will work Approximately two thirds of our vegetables are on the planet. sourcing Better with them to ensure high standards across all produced through contracted relationships with vegetables. individual farmers and growers across Europe, Maintaining soil health, making selective use of many of whom we have worked with for three pesticides and preserving biodiversity are key generations. Our experienced Fieldstaff work with targets within SDG 2 and crucial for ensuring the them to make crop management decisions around future of our agricultural supply chain. CASE STUDY Pea Breeding nutrition Better Since the 1980s, we have been working to address various environmental challenges through our pioneering pea breeding programmes. Our agricultural experts are developing new pea varieties which are more resistant to disease and environmental stress, producing high yields without excessive water usage and fertilisers whilst maintaining high nutritional value. So far, we have developed several new varieties of high- performing peas, all with the same taste that our operations Better customers expect and enjoy. Our current pea breeding programme is a key part of our work to secure the future of pea production across Europe and was expanded in 2018 to operate across several growing areas. This allows our team of scientists and experts to investigate new properties of peas in various environments, with the aim of developing a portfolio of genetically diverse pea varieties that will lead the way in the future of sustainable farming. do business How we 13 | 2018 Sustainability Report
Our progress Future plans In 2018, Nomad Foods joined the Sustainable We will continue raising the bar for sustainable Agriculture Initiative (SAI): a network of food farming practices amongst all our contracted companies and retailers who share our vision and farmers, leading the way with our hero crops principles of sustainable agriculture. This represents such as peas and spinach. We have also started the next step forward for our business and we mapping the rest of our supplier base and will sourcing Better are working hard to introduce all our farmers to engage with them fully over the course of 2019 the SAI Farm Sustainability Assessment (FSA). This to understand what sustainable agriculture will measure the sustainability of our agriculture standards are currently in use. We want all of operations, such as farm management, soil our vegetables to have the same sustainability health and crop protection. We have successfully credentials, whether produced by our contracted completed the pre-audit process and we are now growers or procured from third party suppliers. working with our growers to implement the FSA into We will continue to work with procured vegetable their practices. To aid compliance, we introduced suppliers to ensure sustainable practices are put a new policy to screen all new contracted in place before 2025. We will also extend the agricultural growers across all markets according screening of new suppliers to include this group. nutrition Better to the FSA’s approach to sustainable agriculture. “In 2018 we extended our exclusive pea varieties further across the operations Better Nomad markets, and we continue to breed new varieties focussing on improved tolerance against diseases and increasing weather extremes.” James Young, Agriculture Director do business How we 14 | 2018 Sustainability Report
Our Ingredients Although a large portion of Our progress our supply chain is focused on Poultry is our second largest source of animal protein after fish and seafood. In 2018, we sustainably sourced fish, seafood consulted with NGOs, suppliers and consumers to and vegetables, we also use a inform the development of a roadmap to increase chicken welfare. One focus is to eliminate cage- range of other ingredients in our sourcing Better reared chickens for poultry meat and we are products. already making good progress, with over 95% of our chickens that are barn-reared rather than We work with our global suppliers to understand cage-reared. and address the impact of issues such as animal Eggs are a secondary ingredient rather than welfare, human rights and deforestation through the primary ingredient in most of our dishes and responsible sourcing of high-risk ingredients such as we purchase low volumes of eggs. Where we do palm oil. use them, the majority of our eggs are from barn- reared chickens. We expect to transition to 100% Animal welfare barn-reared eggs by the end of 2020 at the latest. nutrition Better Currently, less than 0.5% of our total sales volume comes from products containing cage-reared Our approach eggs. We support the development of safe, responsible and sustainable food production systems, encompassing traceability and animal welfare as well as environmental and ethical concerns, and we are committed to going above and beyond 16% regulatory standards when sourcing animal Poultry products such as poultry and eggs. operations Better In consultation with our suppliers, we updated Purchase our Policy on Sourcing of Animal Products to ensure 8% 100% traceability, humane slaughtering practices, volume of Red and the responsible use of antibiotics to prevent suffering. Critically Important Antibiotics, those animals by meat that are listed by the World Health Organisation as breed type important for human health, need to be monitored carefully. We are working hard to increase chicken 76% welfare in our supply chain, thereby eliminating the Fish do business How we need for these high priority antibiotics entirely. 15 | 2018 Sustainability Report
Future plans significant user of palm oil, it is important that we although we purchase RSPO-certified palm oil, the minimise our impact on deforestation and respond palm oil is refined and processed with non-RSPO We have made good progress towards ensuring to the demands of our stakeholders. A number of palm oil, therefore losing traceability to its origin. that all our poultry and eggs are sourced from our markets, e.g. Findus Norway and Iglo Belgium, However, we have already initiated actions to barn-reared birds and will continue working are already using 100% RSPO-certified palm oil and replace all mass balanced palm oil in our supply towards eliminating cage-reared birds from our we are working to replicate this across all markets. chain with a segregated alternative, which is supply chain. We are also working with suppliers sourcing Better fully traceable and guarantees that only RSPO- to remove all use of Critically Important Antibiotics across our entire supply chain. We will continue Our progress certified palm oil is used. This process is due to be completed in late 2019 or early 2020. to build awareness amongst our suppliers of our In 2018, 98.5% of our palm oil was sustainably new policy as well as work in partnership with key certified: an increase of almost 3% from 2017, and stakeholders to further develop our standards and we are proud how the business has progressed in Future plans understanding of animal welfare. this area. In addition, no non-conformances were Our long-term goal is to use 100% RSPO-certified found during RSPO supply chain audits across the segregated palm oil in our products. We aim to Palm Oil business in 2018. Following the acquisition of Aunt Bessie’s and achieve this for iglo Netherlands by the end of 2019, becoming the third market that is 100% certified, Goodfella’s, our total use of palm oil increased. leading the way for others to follow. We will also Our approach nutrition Better Due to differences in policies between the newly continue to reduce our total volume of palm oil We are committed to sourcing 100% sustainable acquired brands and Nomad Foods brands, purchased by reformulating our products where palm oil, as certified by the Roundtable for mass balanced RSPO-certified palm oil was re- feasible. Sustainable Palm Oil. Although we are not a introduced into our portfolio. This means that 11% mass balance “Deforestation needs to be 1.5% operations Better addressed to halt climate non- change. Even though we are Palm oil certified not a major user of palm oil, when we use it, we require it to that is RSPO- be certified palm oil and are at certified 98% RSPO-certified already.” Annelie Selander, Group Sustainability 87.5% segregated do business How we Director 16 | 2018 Sustainability Report
Our Supply Chain Ethics We recognise that the supply chain Our progress of food production and processing We have created a three-stage plan to raise awareness of our SCoC to ensure compliance and is one of the sectors which may continuous improvement of practices across our be vulnerable to modern slavery, suppliers. In Phase 1, which was ongoing in 2018, we requested all direct suppliers to register with particularly due to the global sourcing Better the Supplier Ethical Data Exchange (SEDEX) and nature of suppliers. The broad scope complete a self-audit questionnaire. We increased the number of suppliers registered to 60% (up from of our suppliers, which varies from 50% in 2017), however this was below our ambitious small traders to large multinational target of 80%. This is mainly due to the process companies located in all continents, being more time-consuming than we anticipated and the acquisition of two further businesses into requires significant efforts and the group, increasing our supplier base. dedication in order to manage Future plans nutrition Better ethical risk. In 2019, the ambition is to have 75% of our suppliers registered with SEDEX, which is lower than the 2018 Our approach ambition, reflecting the learnings and the business changes resulting in the expanded supplier base. We work closely with our suppliers to implement our This will then allow us to move on to Phase 2 which ethical policies and practices, and we continually includes conducting more regular risk assessments evolve our approach to meet changing legislation and addressing issues of non-compliance. in all our markets. In 2018, we rolled out our We have also recruited an Ethical Compliance updated Supplier Code of Conduct (SCoC), which Manager to increase our focus on responsible operations Better requires all suppliers to apply the same standards trading. Besides maintaining our ethical supplier 60% of ethics and behaviour that we apply to ourselves. database, our long-term ambition is to move from This includes treating all workers with respect closing gaps to proactively addressing potential and dignity, supporting equal opportunities and non-compliance issues in collaboration with our taking all possible steps to prevent modern slavery, suppliers. human trafficking or child labour in all areas of of suppliers their supply chain. The code also requires suppliers registered with to meet wider sustainability criteria covering areas such as the environment and health and safety. SEDEX do business How we 17 | 2018 Sustainability Report
Better Better How we nutrition operations do business Better nutrition 18 | 2018 Sustainability Report
Our Nutritious Food We have seen increasing focus Our approach fruit, vegetables, nuts, fibre and protein. The resulting score determines which meals constitute from governments, policy makers, #3. We are committed to increasing the proportion a healthy choice. We train all of our research of healthy meal choices in our portfolio every NGOs, consumers and the media year, starting from 2017. Nutrition has always been and development experts in applying the NPT, including all our chefs. on combatting obesity and a priority for us and is a core focus area of Our Sustainable Path. Our nutrition strategy is peer- advocating balanced, healthy and reviewed by our Nutrition Advisory Board: a group Our progress sustainable diets. of independent nutrition experts. By the end of 2018, we had increased sales of We screen our products through our Nutrient healthy meal choices in our retail portfolio by €62 We are committed to making it easier for Profiling Tool (NPT), which uses an externally verified million compared to 2017. We are proud of this consumers across Europe to enjoy food that is scoring system to assess their nutrient content. achievement as we continue to strive for more. good for them and for the planet. Our responsibility Points are allocated for nutrients of public health Reformulating old favourites with their nutrient stretches from our ingredient sourcing and recipe concern including sugar, salt, saturated fat and profile in mind is key to our success, as it allows our creation to our communication of nutritional energy. These are then weighted against the total consumers to enjoy healthier options without a big information to customers. points scored for positive ingredients, such as change in their behaviour. In addition, a healthy nutrition Better nutrient profile is always a priority when developing new products. In Sweden, for example, we launched our new Pease range in 2018, combining the goodness of pea protein with a blend of herbs and spices to create protein-packed, meat-free meals. Taken together, 95% 3 of new or reformulated products were healthy meal choices in 2018. 3. Excludes Food Service operations Better % of new or reformulated products for retail which are a healthier meal choice according to our Nutrient Profiling Tool 2017 88% do business How we 2018 95% 19 | 2018 Sustainability Report
Nutritional labelling Future plans We know that labelling is a key part of helping We’re expanding the reach of our Nutrient Profiling CASE STUDY customers to make healthier choices. We use on- Tool (NPT) to our Food Service portfolio and our Nutriscore pack nutritional labelling across all markets and new acquisitions. We are already assessing Aunt adopt widely recognised schemes wherever they Bessie’s and Goodfella’s using the NPT and will In 2018, Findus France adopted the widely exist. This includes the Keyhole symbol in Sweden further support customers to make healthy choices recognised Nutri-Score labelling system. Products and Norway, the Heart Mark symbol in Finland, by introducing traffic light labelling to Goodfella’s now carry a colour-coded front-of-pack label Nutri-Score labelling in France and traffic light packaging in 2019. which rates products on a scale of dark green to red according to their nutritional value. Over labelling in the UK. We have also developed a Nutrition Retailer 89% of our portfolio is already rated green on Engagement Toolkit to inspire and enable our Nutri-Score, and we want to increase this to 95%. marketing teams to engage with retailers on We aim to have Nutri-Score labelling on 100% of nutrition. This is due to launch in January 2019. Findus France products by the end of 2019. nutrition Better operations Better do business How we 20 | 2018 Sustainability Report
Our Approach to Additives We know our consumers are Our progress Future plans concerned about artificial additives In 2018, we assessed each of our recipes across our Our main focus is delivering on our target to make entire product portfolio to establish our baseline, 100% of our portfolio free from taste enhancers, and preservatives. however we have been reducing additives in our artificial flavours and artificial colourants before our products for over 15 years. Most of our progress 2020 deadline. However, we also recognise that They expect us to create delicious meals that allow has been made by renovating existing recipes, but consumer tastes are constantly changing, and we our ingredients’ natural flavours to shine through we have also implemented a strong governance want to be quick to respond. With this in mind, we without requiring additional flavours, colours and process to ensure that 100% of our new products are developing a vision for broadening our clean taste enhancers. are free from taste enhancers, artificial flavours and labelling policy, challenging ourselves to continually artificial colorants. monitor and meet our customers’ expectations. Our approach 93% #4. We are committed to 100% of our portfolio being free from taste enhancers, artificial flavours and artificial colorants by the end of 2020. We are in a strong position, having had a clean of products without nutrition Better labelling policy in place for over 15 years which sets out our internal standards on how to select taste enhancers, ingredients when developing or reformulating artificial flavours products. Our standards already go above and and artificial beyond regulations, but in 2018 we went a step further, introducing a central Clean Label Steering colorants Committee to drive improvements in our recipes and ensure that we meet our target. Freezing is nature’s way of locking in goodness without the need for added preservatives. When we operations Better create a new product, we don’t add preservatives, although we do make exceptions for foods such as ham where ingredients are preserved in a traditional way, or where preservatives are necessary for food safety. do business How we 21 | 2018 Sustainability Report
Our Influence We want to change consumers’ politics. In Italy, we launched ‘Findus Green Camp’, an online video collection of four young explorers eating habits for the better. discovering how to grow crops responsibly. The resources are designed to educate consumers of We use the wider influence of our brands to inspire all ages about sustainable agriculture. people across Europe to enjoy a balanced diet, as well as making more sustainable choices. Future plans Our approach Plans are already underway to continue championing healthier eating in 2019. We’re The majority of our key marketing targets focus excited to be partnering with national television on promoting healthier options. To drive these channel ITV and several UK supermarkets on Veg forwards, in 2018 we articulated what our three Power: a major campaign to promote vegetables largest brands, Birds Eye, Findus and iglo stand to UK children and help tackle childhood obesity. for: ‘Helping the nation eat a little more goodness We have seen enormous growth in consumer every day’. This represents an important step in demand for plant-based options as a more putting health at the heart of our most popular nutrition Better sustainable alternative to meat. Following the brands. We also provide consumers with up-to-date launch of our Pease range, we are launching our scientific evidence about healthy eating, collected Green Cuisine range in four key markets in 2019. The by our in-house team of nutritionists. range uses pea protein to create protein-packed, We know that many of our products are enjoyed meat-free meals, inspiring both meat-eaters and by families. We operate a strict marketing policy vegetarians to make culinary choices that are to help parents and guardians make informed better for the environment. choices, and we never use messaging that encourages children to ‘pester’ their parents about buying products. operations Better Our progress We’re constantly working to inspire balanced diets. For example, in 2018, Birds Eye UK used TV and digital channels to educate millions of consumers about the health benefits of peas, partnering with Buzzfeed to share creative recipe ideas. We also use our position as an industry influencer to champion sustainability. Our Findus Sweden do business How we team participated several events throughout the Almedalen week—the leading event in Swedish 22 | 2018 Sustainability Report
Better operations operations Better do business How we 23 | 2018 Sustainability Report
Our Planet As a growing food business with We also have a responsibility to ensure that water, logistics. We have been working hard to establish energy and materials are used efficiently when measurement protocols in order to understand 13 manufacturing sites, plus 3 making our products. Halving global food waste our carbon footprint, and each site operates with additional sites following the by 2030 is a key target of SDG 12, and we are policies in place to manage their impact. Now that determined to help make this happen. we have a better understanding of the impact of acquisition of Goodfellas and Aunt our business as a whole, we are looking to create Bessie’s, Nomad Foods has an Our approach an environment policy that will manage and reduce our carbon footprint across our operations. important role to play in cutting #5. We are committed to reduce our greenhouse Our responsibility to manage our emissions, carbon emissions. gas emissions every year, from our 2015 baseline combat waste and safeguard environmental of 641.2 kgCO2e emitted per ton of finished goods resources extends beyond our factories. As a food Greenhouse gas emissions from our own operations. We know that reducing business, we need to carefully consider food waste, emissions begins with thorough, accurate data both within our operations and for our consumers. Scope 1: collection and analysis. We calculate our annual Freezing is a well-documented way to reduce food group carbon footprint by mapping out all sources waste at home, offering longer shelf life and making Direct emissions from owned and controlled sources of emissions and converting them into equivalent it easy for consumers to control portion sizes. We 57.8 • Natural and biogas • Liquid CO2 & Dry Ice tons of carbon dioxide. The footprint covers our work with retailers and consumers to raise awareness • Diesel/Petrol • Propane own operations, including factories operated by about food waste and promote frozen options. And • Lubricating Oils • Air Conditioning Nomad Foods (excluding co-packers, Goodfella’s we reduce food waste within our own operations and Aunt Bessie’s sites acquired in 2018), all owned through careful monitoring of our factories and Scope 2: and third-party warehousing and our inbound donating our surplus food to food banks. 56.1 Indirect emissions from the generation of purchased energy kgCO2e per ton of finished goods Our progress • Purchased Electricity • Purchased Stream All our environmental data is independently verified by an external auditor and allows us Scope 3: Start 594.1 kgCO2e to identify how and where best to reduce our operations Better 47.1 Indirect emissions that occur in our year environmental impact.* value chain 641.2 • Re-used materials & • Fertiliser *The reported total CO2eq emissions were confirmed with reasonable 170.5 waste • Fresh & effluent 2017 548.3 kgCO2e 54.9 assurance by GUTcert, an accredited verification body and member of the AFNOR Group. The scope of GUTcert’s verification includes scope • Diesel/Petrol (leased water 603.2 1, scope 2 and scope 3 of the Greenhouse Gas Protocol “A Corporate cars) • Electricity in external Accounting and Reporting Standard” and GUTcert’s procedure is based • Liquid nitrogen • Propane warehouses • Inbound logistics 2018 536.9 kgCO2e 55.6 on ISO 14064-3, taking into account ISO 14064-1 and the working draft ISO TR 14069 WD 1.” 592.5 284.4 kilotons CO2e total 2018 Own production Warehousing and logistics do business How we Reduction 24 | 2018 Sustainability Report
Carbon Emissions Several of our factories have taken steps to Water reduce their environmental impact in 2018. Our In 2018, we reduced our emissions per ton of finished Total fresh water consumption decreased by 5% reduction in scope 1 emissions is largely due to goods by 2% compared to 2017. We’re pleased that compared to 2017 due to several factors, namely our Tønsberg factory in Norway which now uses we have been able to increase our production the closure of the Bjuv factory site, which saved half its gas supply with renewable biogas, saving volume by close to 10,000 tons whilst only minimally 163,000 m3 alone, water-saving initiatives at our approximately 2,000 tons CO2e. Our reduction in increasing our absolute carbon footprint (0.02%). Lowestoft site and reduced production volumes at scope 2 emissions is partially due to our Lowestoft Our total Scope 1 fossil fuel consumption is our Tønsberg site. factory in the UK which switched to a 100% 267,621,332 kWh whereof 98.7% is natural gas. renewable energy supply in October 2018. Our scope 3 emissions increased on a per ton Scope 2. basis compared to 2017, The increase is due to 8% several factors. We saw an increase in waste 29% Renewable derived from animal products, which partly Municipality electricity self- accounts for this rise. The closure of one of our water generated / factory sites in Sweden meant that more raw 4,811,729 m3 227,675,048 kWh purchased materials and finished products were transported Volume of fresh to external warehouses resulting in increased diesel Breakdown of 23% road transport and more purchased electricity. water consumption, electricity and steam Steam We are already trialling ways of tackling broken down by consumption emissions associated with transport. In 2018, we source 71% conducted a pilot in which finished products from Well water 69% our existing production sites were transported using rail freight instead of diesel road transport, which Non-renewable avoided 271kg CO2e emitted per container. Due electricity to these promising results, we will be looking to purchased expand this in the near future. operations Better 4,045,593 Water discharge from factories in m3 do business How we 25 | 2018 Sustainability Report
Waste and Materials for re-use newly acquired businesses and calculating their annual carbon footprint. Once this is complete, In 2018, the total volume of waste produced by our we will be able to set emissions reduction targets CASE STUDY operations decreased by 5.7%. However, there is for them as well, to ensure that they align with our Norway more to do as the volume of materials for re-use progress on sustainability across the board. increased by 8%, the majority of which was used We will continue addressing food waste and three Every ten minutes, over five tons of edible food is for animal feed. of our markets have signed industry pledges to wasted in Norway. To raise awareness about this combat food waste. issue, Findus Norway mimicked five tons of food Food Waste waste in a clear container and placed it in Oslo We work hard to minimise avoidable food waste central station; one of the busiest locations in the Split of waste materials country. Passers-by were invited to take a pledge in our factories and achieved a 5% reduction compared to 2017. We also optimised our planning (excl. materials for re-use) to reduce their own food waste through planning their meals better and using their freezer more. The processes to reduce the amount of edible surplus team also created a website for people to take 4.3% food we produced. Where we did have excess the pledge online. food, nine markets partnered with local food 41.2% 29.9% 24.4% 0.2% banks to ensure it went to good use, sending the The campaign was featured on national television equivalent of 337,420 meals to food banks. 48,689 tons and the pledge has been signed by almost 1,500 Unusually hot weather conditions in 2018 Avoidable food waste, whereof 99.6% Recycled people, including the Norwegian Minister of impacted the harvest of our crops in some markets, Unavoidable food waste*, whereof 98.9% Recycled Climate and the Environment. resulting in lower yields or smaller vegetables. Packaging waste This in turn affected our harvesting practices, the Rest of Non-hazardous waste subsequent production of the vegetables, and the Hazardous Waste amount of waste generated. We will review this by individual sites to identify areas of improvement where we can work with the sites to reduce the Packaging waste, broken down by amount of waste generated. disposal method based on tons of waste operations Better Future plans We are committed to continue reducing our 11.3% carbon footprint year on year, and are currently Incinerated 1.3% developing a more detailed policy for reducing for energy Landfill our environmental impact that will apply across recovery *In the factories where we process our vegetables, our the business. At the end of 2018, we submitted our unavoidable food waste is higher due to the parts of the proposed greenhouse gas reduction targets to the 87.4% vegetables that are unsuitable for human consumption, such as leaves, pea pods and cabbage stems. Science Based Targets initiative, to ensure that our Recycled do business How we reduction is in line with climate science and the 2015 Paris Agreement. We are also integrating our 26 | 2018 Sustainability Report
Packaging Packaging is crucial for ensuring correctly, and we participate in industry initiatives Future plans including the UK Plastics Pact and the Norwegian the safety and quality of our Plastinitiativet to find circular economy solutions to Our most recent forecasts indicate that by 2020 we will have achieved 90% recyclability of our food. But when it is not disposed unsustainable packaging, working collaboratively packaging. across the value chain with packaging manufacturers, of correctly, food packaging can producers, retailers, consumers and disposal facilities. We believe that labelling has an important role to play in encouraging consumers to recycle or have a disastrous impact on the We have a Responsible Packaging Design Code dispose of food packaging correctly, and are of Practice, which applies to all packaging we environment, polluting oceans and use. As well as setting stringent standards for food looking at strengthening our packaging policy by making labelling a mandatory requirement. damaging ecosystems. safety, the Code of Practice includes a protocol for avoiding excess packaging. We also request In 2018, plastic packaging has come under intense that all our suppliers source packaging materials 71% scrutiny from consumers, governments and media. sustainably, for example through the Programme for the Endorsement of Forest Certification (PEFC) Our approach and the Forest Stewardship Council (FSC). of consumer #6. We have committed to making 100% of our packaging recyclable by the end of 2022. As part Our progress packaging is of reducing waste, we need to make it as easy When developing new products, we prioritise recyclable as possible to reuse and recycle any packaging. paper-based packaging materials over plastic, We believe in using established on-pack labelling and over 80% of our paper packaging comes from to help consumers dispose of packaging sustainably managed forests. “Addressing plastic pollution whilst maintaining food safety operations Better and quality is a key focus for us. 100% recyclable is a first step, but we are committed to going beyond this.” Stella Peace, Group R&D Director do business How we 27 | 2018 Sustainability Report
Our People and Communities We know that great people make Employee Wellbeing markets and exceed statutory minimums. We also know that the strength of our business the difference, so looking after our Our approach is highly dependent on the health of communities employees’ safety and wellbeing in In 2018, we launched ‘Our Well Way’: a health and around us, so we regularly run and participate in activities for local people in all our markets. both our factories and offices, and wellness programme designed to support all our 4,380 colleagues’ physical, mental and financial investing in the development of our wellbeing. The programme consists of a global Our progress colleagues is essential to making toolkit which is delivered across our markets by The success of ‘Our Well Way’ was reflected in our local champions. In addition to the programme, annual employee engagement survey, Our Voice. Nomad Foods a successful and we provide a wide range of employee benefits, The results show employee wellbeing up four points sustainable company. which vary according to the needs of specific from 2017, much of which is due to employees’ 4,015 Full-time employees 2,500 People working in factories operations Better 82 Sustainability score based on Our Voice Survey 82 Wellbeing score based do business How we on Our Voice Survey 28 | 2018 Sustainability Report
Case study Sustainability Ambassadors enthusiasm in Our Well Way activities across our Future plans In 2018, we established a European network markets. A ‘Run for Records’ group run by iglo of Sustainability Ambassadors: Nomad We are proud that our employee engagement Austria combined getting fit with raising money for Foods employees who are passionate about scores are significantly ahead of FMCG averages. championing sustainability throughout the charity, whilst our ‘Lunch and Learn’ sessions rolled However, our long-term target is to be in line business. Our Ambassadors drive progress on Our out across the business brought teams together with high-performing businesses in other sectors. Sustainable Path by delivering activities in their to inspire healthy eating. We also accelerated Therefore, we are currently running local and local markets. Together, they form Sustainability the roll-out of our group-wide management functional workshops to identify our key areas Action Groups on three key topics: saving the and leadership programmes, and made our for improvement and develop activities to drive oceans by saying no to plastic pollution; fighting operations Better career management processes significantly more food waste and inspiring healthy eating, as well as progress. transparent, allowing employees to take active a fourth group for sharing initiatives internally. Our steps in their career development. Ambassadors have already launched a range 79% We are proud to see our markets actively of great initiatives, including our Belgian team’s participating in their local communities. In the Nutritional Academy, and our Italian team’s UK, for example, more than 40 volunteers from ‘Our Vegetable Garden’ programme inviting our Bedfont-based Commercial Team went out employees and their children to grow and harvest their own vegetables. Going forward, we will look into three local schools to run an hour-long ‘Eat of total employees at scaling up the most successful initiatives from Well Grow Well’ session. The initiative reached participating 2018 to create business-wide employee action on 810 children, helping them to understand the do business How we importance of eating healthily and asking them to in employee sustainability. make a pledge to do so more often. engagement survey 29 | 2018 Sustainability Report
Employee Health and Safety As our business grows, it is essential lines to ensure safety and environmental risks are workplace transport, as well as setting the basics in identified and controlled, to minimise the risks place for the base business and acquisitions. As a that we provide a safe working across our factory network. We also identified an result of these efforts, we achieved a 24% reduction environment, particularly for the additional high-risk area that required attention, in lost time accidents in 2018, going from 53 to 38 which is the use of ammonia in our cold-storage incidents and a 46% reduction in total recordable 2,500 employees working in factory facilities. As a result, we have developed cases. We’re proud that our Loftahammar site in roles. engineering processes and a tight maintenance Sweden has now achieved two years without a schedule to identify any damage as soon as single lost time accident and we will continue to possible, alongside emergency plans in the case work with all our sites to achieve this across our Our approach of gas leaks on site. entire supply chain. We invest in having site safety personnel across our factories, and we have a dedicated central Our progress Future Plans health and safety team which supports sites in In 2018, we focused on improving our rate of lost Our Occupational Health and Safety Policy was implementing technical solutions. We are also time or recordable accidents, particularly within updated in 2018. However, with the acquisition reviewing all of our machinery and production our high-risk areas of machine safety and of new brands, we need an updated policy to reflect the breadth and scale of our operations. Developing this policy is key focus for 2019, ensuring that we continue to uphold the highest standards of health and safety for our employees. In 2019, our Leadership teams will be focused on embedding safety throughout all of our systems. operations Better ➜ Number of lost time accidents: 38 accidents Total recordable accidents: ➜ 24 accidents Total first aid accidents: ➜ 301 accidents Total near misses: ➜ 715 incidents do business How we Lost-time injury frequency rate: ➜ 5.59 per one million hours worked 30 | 2018 Sustainability Report
Diversity and Inclusion Diversity and inclusion (D&I) is an Our approach up of our top 65 leaders across the business) to progress towards an equal balance of men and increasingly important topic that Our D&I focus is detailed in our Nomad Diversity women, whilst never compromising on ensuring and Inclusion Policy, developed in 2018. It is cuts across all sectors of society and governed by a specific Diversity and Inclusion that we have the best talent in these roles. This is an important ambition and we are already taking affects all our employees. Steering Group, sponsored by members of our steps towards it. We have initiated the Women in Executive Committee and made up of colleagues Nomad Network (WINN) group, which runs several Embedding D&I within our structure and processes from various functions across the business. This events throughout the year including speaker is creating a culture where colleagues feel committee supports and promotes the D&I agenda sessions on International Women’s Day, panels involved, respected, and connected, regardless in the business, working with local champions at our and forums on various topics including role models, of their sex, gender, sexual orientation, age, race, locations across Europe. mentoring, emotional resilience and establishing ability, religion or ethnicity. In essence, it means that One area of specific focus is gender balance. your own personal brand. It’s currently deployed in everyone can bring their complete self to work. We want our Enterprise Leadership Team (made the UK with plans to be rolled out across the business. operations Better do business How we 31 | 2018 Sustainability Report
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