2019 C SR REPORT - Lactalis Ingredients
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Editorial Bringing together all our initiatives, explaining our actions and priorities, and detailing the impacts of our activities is something new for Lactalis Ingredients. This report is the result. What is not new, is the sense of responsibility that inspires us each morning, whatever our position within the company. Even less so is the solidarity we feel towards the territories that we live in and fully support. Finally, what has always been a constant is the priority given to the clients who trust us and whose demands for information on the broad range of our responsibilities is increasing. This document, through its clarity, ease of access to significant information and comprehensive focus, illustrates the meaning of our development model, in which the idea of responsibility has its rightful place. And always has done. JEAN-LUC BORDEAU Chief executive of Lactalis Ingredients 5
Contents P 04 Editorial Responsible P 06 and enjoyable Introduction - Contents P 08 nutrition Presentation of the approach P 28 Issue P 10 Ensuring food safety and encourage Interview with better nutrition for everyone Jean-Luc Bordeau P 30 The wider picture Meeting Jessie Braire Responsible for the planet P 14 Responsible Issue Reducing our carbon footprint for the people P 34 P 16 Issue The wider picture Maintaining health and safety Lactalis chooses thermal solar at work energy P 36 P 18 Issue Issue Quality of work life Preserving water resources P 38 P 20 Issue Focus Encouraging better professional Why is water an issue? development and inclusion P 22 P 40 The wider picture The wider picture The new water treatment plant Career paths P 24 Issue Animal welfare P 44 Procedures P 46 Indicators P 48 Acknowledgements 7
LACTALIS INGREDIENTS 17 Partnerships for the Goals 1 No Poverty WHAT ARE THE ISSUES? 16 Peace, Justice and Strong 2 Zero Hunger Institutions Presentation of the 15 Life on Land 3 Good Health and Well-Being approach, main issues 4 Quality 14 Life Below Water Education LACTALIS INGREDIENTS AND THE CSR: OPERATIONAL IMPLEMENTATION REFERENCE DOCUMENT POLICY FRAMEWORK The CSR approach is a question of general SDG The history of Lactalis is intertwined with philosophy with increased operational SUSTAINABLE To provide a reference DEVELOPMENT that of rural areas. Our family-run business has expressed its sense of responsibility and implementation. We consider easy access to relevant information to be the first rule of 13 Climat Action 5 Gender Equality framework that is relevant to the Group’s organisation and sustainability for more than 85 years. Our conduct. This is made possible through the its international character, first responsibility is to ensure the sustaina- publication of our first CSR report, which is Lactalis has adopted the bility of our business through economic steered by a cross-disciplinary working 12 Responsable United Nations’ agenda performance, which alone can sustainably preserve our independence and freedom of group representing all departments within the company, taking its international scope Consumption and Production 6 Clean Water and Sanitation including 17 sustainable development goals (SDGs). action. We know that performance will be into account. 11 Sustainable Cities and Communities This graph shows the sustainable if it contributes to a transition in objectives and targets that agriculture that enables farmers to make a SEDEX 10 Reduced Inequalities 9 Industry, 7 Affordable and Clean Energy are relevant to the Group’s living and the population to have access to To include the entire value chain in its Innovation activity. The table opposite 8 and Infrastructure Decent healthy food while jointly protecting our approach, Lactalis Ingredients is part of the work and provides a link to the major shared asset: nature. Economic Sedex programme, a collaborative platform Growth initiatives or practices by Lactalis Ingredients has formalised its for sharing responsible sourcing data in rela- Lactalis Ingredients as approach to responsibility and sustainability. tion to the supply chain. The company calls for presented in this report This includes the economic, social, environ- regular audits to be performed at its plants. (pagination indicated). mental, and societal aspects of its activities. These cover the following themes: safety, the For each issue, we have determined the environment, social and ethical business Lactalis Ingredients targets company’s responsibility, the corresponding issues. Sedex consolidates the prerequisites, engagements and initiatives, and indicators formalises good practices and is the standard 2.1 Health safety P28 7.2 Renewable energy P16 for progress. This framework is the action reference for the group. guide presented to all our employees and 2.2 Nutritional value P28 7.3 Energy efficiency P16 other involved parties. 4.3 & 4.4 Training/Skills development: P38 Local socio-economic 8.1 P34 dynamics 4.5 Equal treatment P36 8.8 Health and safety at work P34 6.3 & 6.4 Protection of water resources P18 6.6 Renewable energy P18 Protection of biodiversity 15.1 P24 and animal welfare 15.5 Climatic impact P14 8 PREMIER CSR RAPPORT REPORT 2019 RSE - 2020 99
LACTALIS INGREDIENTS INTERVIEW “We are part of the rural community. We bring our expertise, technology and commitment.” INTERVIEW WITH JEAN-LUC BORDEAU CHIEF EXECUTIVE OF LACTALIS INGREDIENTS What motivated you to This crisis confirms and How do you involve clients and I feel totally committed to How is the core of Lactalis elderly. It must be said that the 1 : These 5 principles were outlined by the publish your first CSR report? reinforces the validity of the in this process? an adventure that supports Ingredients profession end consumer on this market Farm Animal Welfare Lactalis has always been aware commitments and choices The dynamics we have initiated progress in rural activity, which concerned? has increasingly high, even Council in 1992. They technical, requirements and are included in the of the major social issues that presented in this report. already actively involve clients. is not highlighted enough. Lactalis Ingredients’ rationale definition of animal affect its activities. To make Over the past few years, we is to bring value to Lactalis expectations. welfare by the World progress in all areas and What is the general have strengthened our What does this progress Group’s milk and whey Lactalis Ingredients’ process Organisation for Animal Health. enhance communication and framework for your relationship with them: we include? surpluses, in order to market control meets these (OIE). See page 24 dialogue with our clients, approach? have put more resources into It overlaps with our client and them to food manufacturers. requirements. Indeed, there is we decided to formalise this Lactalis Ingredients is in line enabling them to benefit from consumer concerns and covers Consequently, the core of our a demand for naturalness procedure. with Lactalis Group’s ambition our technological advances and all the issues that have been profession is concerned on throughout society. It echoes to provide healthy, tasty food. the results of our research and identified, such as the several levels. Food safety is the unique and irreplaceable This CSR report is being Furthermore, we are part of development efforts, but have different programmes to assist subject to continued effort natural nutritional value published at a time when the the Group’s recently adopted also been more attentive to and support of farmers, on the throughout all production of milk. Covid19 crisis has caused action plan that determines their concerns to provide them theme of animal welfare, stages, the principle of disruption on many levels. the Group’s responsibilities in with all the information they for example (see page 24). continued improvement In this context, what is the terms of governance, need concerning our products. Regarding this example, the means we constantly progress. point of maintaining this enjoyable and responsible This first report bears witness entire Lactalis Group pays There is also what we might publication? nutrition, social and societal to this. special attention to this issue. call the field of nutritional The crisis we are experiencing aspects and finally the impact We act pragmatically to reach quality. The division’s drying echoes all CSR issues. This is of our activity on the planet. How do you integrate beyond the good intentions activity enables populations true for our absolute priority From an operational point of upstream issues? level and carry out an analysis that do not have local milk which is the safety and health view, many issues are driven We are part of the rural of the situation. In France, collection to enjoy the benefits of people. It is also true for the by the different departments. community. We bring our 163 audits have been carried of milk in powder form. continuity of our activities in They have their own specific expertise, technology, and out among volunteer farmers Lactalis Ingredients goes much terms of the role we play in the action plans monitored by a commitment. We have a strong to obtain data and calibrate further in this field by carrying food industry, I am thinking working group that stimulates relationship with our farmers. the Group’s ambitions. The out many research programmes. of the regions that may have progress and puts the Their job goes far beyond just criteria outlined in the new The division makes dairy feared a supply chain company in project mode. providing milk. Farmers guidelines apply the five protein concentrates and breakdown. This is true in This report is the result of that participate directly in the fundamental freedoms for isolates for nutrition products. relation to the solidarity and work. Finally, our commitment quality of our landscapes, the animals1. In concrete terms, This provides quality proteins particularly responsible was formalised by way of a environment, and rural we encourage and support the for different groups of the behaviour that we have seminar to bring all our preservation and development. efforts of dairy farmers population: children, athletes, observed within our teams. employees together. My grandfather was a farmer, breeders in this field. undernourished patients, the 10 CSR REPORT 2019 11
INTRODUCTION Responsible for the Planet The Group considers the environmental issue for all upstream impacts, as it does for the processing stage. The main concerns for Lactalis Ingredients are • the carbon footprint, • water resources, • animal welfare. The main contributor to Lactalis Ingredients’ carbon footprint resides in its drying activity, which requires large heating installations and usually has high energy requirements. Lactalis Ingredients’ water footprint includes use both upstream and during the processing stage, and downstream management of effluents to preserve the natural ecosystem, waterways, and groundwater. Animal welfare is a theme that is addressed by the Group by means of assistance and support to farmers. 13
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Our Carbon EFFORTS UPSTREAM AMONG FARMERS TRIALS The Group is attentive to the upstream carbon A study contract has been signed with a start-up footprint: for producing hot water using solar power at Footprint • CAP’2ER (Calcul Automatisé des Performances Environnementales en Élevage de Ruminants - Automated Calculation of the Environmental the Verdun site. This solar plant will be one of the largest thermal solar plants supplying an industrial site with 4.5 ha of solar panels produ- INDICATORS cing water at a temperature of 90°C for the Performance of Ruminant Rearing) allows for Lactalis Ingredients’ carbon footprint 0.53 t drying site. In Retiers, we have introduced the assessment of the environmental impact on the use of solid recovered fuel (SRF) in addition to scale of a ruminant-rearing farm. Participation in resides in its drying activity, which the assessment is voluntary. Lactalis Group natural gas. requires large heating installations and sends one of its trained dairy technicians to the farm to assess all environmental impacts, COMMON SENSE AND SUITABLE SHOES! of CO2 per tonne produced GRI 305-1 high energy requirements. particularly the carbon footprint. The Group contributes financially to the cost Managing energy consumption and adapting it to the real needs of a site is at the heart of a Direct greenhouse gas emissions (CO2) of planting hedges on grazing land. For each strategy to reduce greenhouse gas emissions. In Retiers, Christophe Guérin, This implies that, above all, reducing the farm, Lactalis aims to increase wooded areas Energy Manager is steering the site’s Consequently, energy savings and the use of alternative energies (new fuels) are with at least 60% of grazing plots providing footprint requires practice in the field: Target for 2025 energy transition. the two preferred methods of reducing Lactalis Ingredients’ carbon footprint. natural shaded areas that contribute to carbon “Every day, I walk around my site. I check that storage and preserve biodiversity. • The Clairalim* scheme also incorporates several good practices to reduce greenhouse gas there are no leaks, that the boiler has been set correctly, I put on my boots and go out into the field!’ says one site manager.” -10 % emissions by optimising dairy cow feed. CENTRALISING PRODUCTION TOOLS RESEARCH AND DEVELOPMENT Centralising factories concentrates the impacts, 94.77% but also the potential to reduce them signifi- CAP sur l’Avenir*’ guidelines The Group is heavily invested in developing cantly. It reduces the loss of materials, makes compliance rate - environment alternative energies, particularly new fuels the cleaning process easier and limits energy (steam supply, use of non-recycled waste). consumption. * “CAP sur l’Avenir” is a This is an area in which significant results and good practices policy considerable advances in technology can be REDUCING THE LOSS OF MATERIALS launched in 1999 and expected within 15 to 20 years. regularly updated since Reducing the loss of materials has always been part of the Group’s DNA and is an efficient way then. These guidelines PROGRAMME FOR CONVERSION TO integrate several to reduce our impact on the environment. In NATURAL GAS elements including concrete terms, it means not treating materials good practices to limit Lactalis Ingredients is conducting a comprehensive at a loss. From one manufacturer to another, greenhouse gas programme to convert sites from heavy fuel oil there are significant differences and in the case emissions: energy to natural gas. All sites are concerned, and the of external acquisitions, the Group endeavours diagnosis of livestock plan will be complete in 2020. The Retiers site, to relay this culture that leads to immediate buildings, treating that currently uses coal, will also undergo the progress. bedding to control the same transition to natural gas by the end of heating temperature, or 2020. the installation of milk pre-coolers or heat recovery units on milk tanks. *T his scheme, set up by Lactalis among manufacturers of feed for livestock, consists in improving the composition and contents of these foodstuffs by eliminating soya bean and incorporating flax. 14 CSR REPORT 2019 15 15
LACTALIS INGREDIENTS THE WIDER PICTURE Solar plant project at the Verdun site Lactalis has chosen thermal The energy produced by more than 15,000 m² of large solar thermal collectors will be stored solar energy to reduce its CO2 in a hot water storage tank then carried to emissions. the site through pipes. of our steam consumption, and thus reduce Environment and Energy Management) heat “This is a fundamentally innovative and groun- our gas consumption. We are committed to fund. The Grand Est region is also investing In a year’s time, the Lacto Serum France plant, dbreaking project since it is the first time that buying energy from the power plant for in this major project which has been met with specialising in drying will partially operate such a facility will be connected to a spray drying local approval for the activity it will bring to 25 years,’ says Mahmoud Kamal, manager of using solar energy. Keen to reducing its car- tower, a cutting-edge industrial tool,’ says Hugo bon footprint, Lactalis has partnered with Petat, Industry Project Manager at newHeat. newHeat for the construction of a solar ther- ‘It was imperative for us to be part of the site mal power plant near its Verdun site. The mere size of the site makes it one of the as much as possible without disrupting the pro- duction process,” he adds. “The project, which consists in replacing Group’s most energy intensive. The Verdun plant produces standard and The project, which consists in replacing fossil fuels with carbon-free, renewable energy, fossil fuels with carbon-free, renewable demineralised whey powder. Production of will lead to a significant reduction in the site’s carbon footprint and considerable ecological energy, will lead to a significant these two ingredients requires a high consump- tion of water and gas. In 2019, Lactalis Ingre- benefit. Lactosol will provide roughly 8,000 MWh of solar heat that can be used for the new reduction in the site’s carbon footprint.” dients engaged in considerable renovation spray dryer. work at the site: two outdated spray dryers By helping to reduce the site’s gas consump- were replaced by a highly efficient new dryer. tion, it will prevent the emission of roughly This was an opportunity for the Group to 2,000 tonnes of CO2 per year or practically the Lacto Serum France site. For their part, companies and the contribution it will make reconsider its energy supply. 50,000 tonnes over 25 years, the duration of newHeat will ensure the running and main- to local and national goals to reduce green- Work on the Lactosol thermal solar power the contract signed between Lactalis and the tenance of the installation during the entire house gas emissions in the fight against plant will start in the summer 2020. It will be Bordeaux-based start-up newHeat. duration of the contract. The cost of Lactosol is climate change. in Fromeréville-les-Vallons and will be the €5 million part of which is covered by largest in Europe to be connected to an indus- ‘Our service provider will provide us with hot the ADEME (Agence de l’Environnement et trial process. It will span close to five hectares. water so we will be able to do without part de la Maîtrise de l’Énergie - Agency for the 16 CSR REPORT 2019 17
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Preserving UPSTREAM: “CAP SUR L’AVENIR” CLEANING: A CLOSELY MONITORED ACTIVITY As early as 1999, Lactalis Group decided to go Water management figures prominently in the beyond collective endeavours by launching its continuous improvement programmes and is Water Resources “Cap sur l’Avenir” guidelines which are updated regularly. The breeders who participate are committed to adopting practices that save therefore subject to regular monitoring. With respect to cleaning, the objective is to standar- dise practices. The installation of CIP (Clean in energy and water and protect resources (e.g. Place) equipment at the division’s plants means Water resources are a major issue for the effluent storage). water can be recycled and limits drawing water unnecessarily. dairy sector. It is even more so for Lactalis TECHNICAL SUPPORT WATER TREATMENT PLANTS MANAGED The Lactalis Group uses the CAP’2ER audit, an Ingredients due to the processing stage assessment and technical support tool that LIKE FACTORIES assesses the impact at livestock farm level and The Group has a simple rule: consider the water that represents 30% of its water integrates several indicators including water treatment plant in the same way as a manufac- footprint. quality. turing plant. DEVELOPING THE ORGANIC SECTOR HIGHLY EFFICIENT WATER TREATMENT As the leading player in organic dairy products in PLANTS INDICATORS LACTALIS INGREDIENTS’ WATER FOOTPRINT INCLUDES: France, Lactalis encourages the development of Most sites have their own water treatment plant. the organic sector, which is more ethical in terms Analyses of the pollution load of discharges as The division has chosen two •u pstream use: livestock watering, cleaning the milking parlours, production of water conservation. Several studies have they enter or exit the treatment plant, combined indicators that reflect its of fodder and cereal crops to feed the herds, shown that phosphate and nitrogen emissions in with the quantification of losses, make it possible ambitions in terms of reducing •u se during the processing stage: essentially cleaning equipment to meet consumption and preserving water on organic milk-producing farms were to assess the quantities of water and the materials resources and biodiversity: hygiene quality requirements, lower than those on traditional farms. Indeed, discharged in detail. Concerning treatment of 8.63m •d ownstream management of effluents to preserve the natural ecosystem, measuring eutrophication, expressed as a waste water, the Lactalis Group has quite a track waterways, and groundwater. phosphate (PO4) equivalent, and calculated by record: it set up its first water treatment plant considering the run-off of phosphorus particles over 40 years ago. Today, investment in La Société 3 and nitrogen leaching, is revealing in this respect. Laitière de Mayenne’s new water treatment On the 60 farms in the network of farms studied plant, which is a model for the Group, proves that of water consumed per tonne in 2011 by the Brittany Chamber of Agriculture, the Group’s ambition is still intact. produced the risk of eutrophication is lower in an organic system than in a conventional one (23 kilos PO4/ RECOVERING WATER FROM MILK ha compared to 40 kilos for conventional). The Lactalis Group has expertise in process Target for 2025 -5 water recovery practices1. This water has been GOOD PRACTICES recovered for many years in most of the Group’s The Lactalis Group assists producers (through dairy ingredients plants, thus reducing the need % funding, training, technical support) and encou- to draw water from elsewhere. rages the adoption of high standards in terms 0.43kg of water quality, fighting wastefulness and REACHING OUT TO STAKEHOLDERS effluent management. To go further still, the Group has reached out to stakeholders, particularly those who use water FIGHTING WASTEFULNESS (for fishing, recreation, and sports). per tonne produced Very early on, the Group’s industrial culture of rigorous management of raw materials contri- COD from water-treatment buted to defining the process for fighting plant wastefulness of resources. Indicators for water consumption and loss of materials in waste water have been reported daily for more than 1 ater extracted during concentration/drying w 30 years. operations. 18 CSR REPORT 2019 19 19
LACTALIS INGREDIENTS FOCUS Why is water a challenge? At a time when water availability is becoming more and more critical on a global scale and water stress is increasing in many regions of the world, it is essential for the dairy sector, and all the more so for Lactalis Ingredients, to identify levers for adaptation and potential for progress in order to make the best possible contribution to managing and economising this resource. The main impacts on water each production cycle the instal- equipment with water is syste- powder, this water is loaded with Consequently, recycling evapo- maximum level of 125 mg/l of resources for Lactalis Ingredients lations need to be cleaned. This matic at each stage of the process: organic matter that is a compo- ration water is confined to a peri- COD1 in water discharged into Division concern the consumption is even more relevant as hygiene • cleaning milk collection trucks nent of milk. After appropriate meter that is still too limited. the natural environment after and discharge of waste water into standards always tend to become and the tankers of the transpor- treatment, it is already reused in Whether it results from cleaning treatment). The division has had the natural environment after more stringent. The installation ters involved in internal logistics, the industry for certain opera- treatment. It is worth noting that of CIP (Clean in Place) equipment • cleaning closed-circuit process tions such as cleaning the outside the division returns more water than it consumes, since this water at Lactalis Ingredients’ plants means water can be recycled and equipment (transfer pipes, manufacturing tanks, evapora- of trucks, premises, and floors. The Group has a strong track The cleaning of equipment comes from the raw material used (milk) from which the dry matter “wasting water” during cleaning is limited, leading to significant tors, spray dryers, etc.). Cleaning is often carried out by specially record in these practices. Reco- very, treatment, and reuse of eva- with water is systematic is extracted and used as ingre- savings. It is also worth remem- designed, water-saving CIP (recy- poration condensates have been dients. Generally speaking, clea- bering that centralisation carried cling loop), in place for several decades in ning is the most important activity, out in the 2000s reduced the num- • cleaning workshops: floors and most plants, whether in Retiers, or the industrial process, this its own waste water treatment far ahead of steam production to ber of sites in favour of high- the outside of equipment, France (Ille-et-Vilaine), in Villar- water can have an impact on the plants since as early as 1973, mee- power the boilers required for performance units. This made it • water consumption linked to robledo, Spain, in Nampa, United natural ecosystem and cannot be ting stringent treatment stan- the pasteurisation operation, or possible to rationalise overall the toilet facilities, hygiene of States or Tres de Maio, Brazil. Pro- discharged. Management and dards that enable it to return the the manufacturing process itself. consumption and ultimately gene- the premises and workers. gress in treatment techniques treatment after processing are resource to the environment wit- rate savings. In other words, if, (sorting and oxidation, osmosis, also essential. While some of the hout causing it any harm. Given The Group has a well-established particularly in mature countries, The division does all it can to nanofiltration…) suggest the matter contained in such water what is at stake, the installation resource management culture there are large-scale plants hou- circulate good practices on the range of reuse of this water will could be part of a virtuous circu- of high-performance equipment, that encourages operators to sing production lines with subs- matter. Downstream, the issue increase. However, there is gene- lar economy by being used as land in the hands of trained personnel, 1 The COD, or Chemical adjust the quantities consumed tantial installations, at both Lac- of waste water management is rally a surplus: recycling it is com- spreading, the risk of pollution is is a major focus of the division Oxygen Demand, makes as closely as possible to needs. talis Ingredients and Group level, also central to Lactalis Ingre- plex, and much of this alternative nevertheless real if it is discharged that invests heavily in this area. it possible to assess the But the increase in the number all industrial tools use less water. dients’ activity as it produces eva- resource is not yet recovered. The directly into the natural environ- In this respect, the new Société pollution load of waste water. This is the of product references, due to poration water during processing. array of regulations and the costs ment. Furthermore, legislation Laitière de Mayenne water treat- consumption of oxygen market segmentation, has an In view of the public health issues that the processing systems provides a framework for prac- ment plant is symbolic (see fol- by strong chemical oxidants to oxidise immediate effect on the increase at stake and the associated bac- Recovered by concentration represent means it is difficult to tices involving industrial effluents lowing page). organic and mineral of required volumes: between teriological hazard, cleaning during the production of milk make it systematic and global. (European legislation imposes a substances in water. 20 CSR REPORT 2019 21
LACTALIS INGREDIENTS THE WIDER PICTURE The new Société Laitière de Mayenne water treatment plant: a model for the group In 1973, the Lactalis Group perimeter of the Group. The project, installed preservation of the natural environment and securing the system, he compares to a tool around an aeration basin with a capacity of operation of the plant. He therefore complies box: “If we encounter a problem, we have an inaugurated the first of its own 11,000 m3, includes a continuous metering with the Group Industrial Manager, Philippe advisor on the end of the line who immedia- water treatment plants in device, or “TOC-meter”, which assesses the Laborne’s instructions: if the production tely provides the solutions or commits to fin- Mayenne. A new generation total organic carbon (TOC) content of the units are unable to comply with discharge ding them! The members of the department water treatment plant began effluent when it arrives at the plant and trig- standards, they must be shut down. The do all they can to help us.” The surroundings gers an alert in the event of an anomaly. A water treatment plant is second on the mor- are also considered, resulting in the choice operating on the same site monitoring operation that is be carried out ning agenda he discusses with the plant of turbines fixed to concrete rather than 46 years later. in addition to the daily sampling for COD management, just after human safety. He floating structures. By limiting water spray, measures. The water treatment plant for La Société Laitière de Mayenne, which mainly manufac- The plant also has a tertiary safety treatment tures dairy ingredients (casein and whey) bypass device that is triggered if an abnor- The water treatment plant has its own began operating in February 2019 and was designed to minimise the impact on the envi- mally high quantity of dry matter is present at the water treatment plant outlet. This analytics laboratory, autonomy that ronment as much as possible. This stance can be considered binding as the construc- ensures compliance with discharge stan- d a r d s . Fu r t h e r m o r e , u p s t r e a m , a n d reinforces the control of the process. tion required considerable investment. downstream of the water treatment plant, an effluent diversion circuit also makes it With more than 40 years’ experience, the possible to isolate the untreated water in systematically starts his days by examining this choice has the advantage of reducing Lactalis Group conducted the project by pur- sealed basins if there is a risk of pollution. the data collected the previous day. Trained the quantity of aerosols but also the noise suing the aim of making this ‘new genera- Another noteworthy fact: the water treat- both internally – a plant operator must have generated. Similarly, the aeration equipment tion’ plant a very safe water treatment site ment plant has its own testing laboratory. six months’ operational experience at one has been soundproofed. The sludge storage for the natural environment, but also res- This autonomy not only reinforces the control of the Group’s water treatment facilities – and infrastructure, which is entirely covered, pectful of the immediate environment in all of the process, but also the team’s reactivity externally, Matthieu Madec, is a plant ope- includes an odour treatment system. Finally, its components. In doing so, it sets out a if the results were to lead to specific inter- rator, works full time and also reports daily the green merlon landscaping project aims proactive policy and meets the ambitions it ventions. They are represented by the site’s on the ‘life of the plant’. Damien Le Bris fur- to hide the installations and make the view has established in this field: this plant could ‘Environmental Safety’ manager, Damien Le ther highlights the importance of the Group’s as pleasant as possible for local residents. serve as a model within the international Bris, who defines his role as ensuring the environment department, which beyond 22 CSR REPORT 2019 23
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Animal Welfare NEW LACTALIS GUIDELINES A SPECIAL EFFORT AMONG YOUNG DAIRY The Group has taken the initiative of grouping FARMERS all guidelines and criteria on animal welfare in Convinced that it is when setting up that aware- place across Europe (France, Germany, Sweden, ness is raised, Lactalis is mobilising young Poland) in order to establish a common farmers so that they immediately opt for The attention that the Lactalis Group reference document (Group). A benchmark has free-stall cowsheds (as opposed to tethered also been set for all Group companies, including cowsheds). pays to animal welfare is based on the those that have joined recently. The new Lacta- lis guidelines (new version of “CAP sur l’avenir”) ORGANIC-ORIENTED APPROACH conviction that improving it is not only will include roughly 30 criteria relating to The Group’s organic-oriented approach incorpo- compatible with production constraints animal welfare. The new version will incorpo- rate criteria such as the absence of competition rates notions of grazing, fair pay for producers, animal welfare and biodiversity. but will also benefit (among other to access water, in concrete terms: one drinking trough for ten cows. CAP SUR L’AVENIR things) progression in terms of food IN-DEPTH FIELD STUDIES The Group promotes external certification (Certipaq) of the ‘Cap sur l’Avenir’ scheme that quality and safety. To validate its recommendations and calibrate regularly carries out audits on farms. This the Group’s ambitions, several tests were carried ensures that requirements and procedures are out on voluntary farms. One hundred and sixty- followed. External audits are carried out every IN THIS FIELD, LACTALIS HAS ELABORATED AN ANIMAL WELFARE three volunteer farmers participated in the two or three years. PROTECTION POLICY ADAPTED TO THE DIFFERENT FARMING METHODS IN study. THE COUNTRIES WHERE MILK IS COLLECTED, BASED ON THE PRINCIPLES AND ‘FIVE FREEDOMS’ OUTLINED BY THE O.I.E. (WORLD ORGANISATION FOR ANIMAL HEALTH) • f reedom from hunger and thirst – access to fresh water and adequate nutrition to ensure the animals’ good health and vitality. • f reedom from discomfort – suitable environment including shelter and a comfortable rest area. • freedom from pain, injury, and disease – prevention or quick diagnosis and treatment. • freedom to express normal patterns of behaviour specific to the species – enough space, environment suited to the animals’ needs, and contact with other cows. • freedom from fear and distress – rearing conditions and practices that do not cause psychological suffering. INDICATOR 97.87% “CAP sur l’Avenir” guidelines compliance rate – animal welfare 24 CSR REPORT 2019 25 25
INTRODUCTION Responsible, Enjoyable Nutrition Emanating from the end consumer, a demand for naturalness exists throughout society. It echoes the unique and irreplaceable natural nutritional value of milk that we convey. To meet these trends, it is important to name things properly and to provide tangible information that can be checked. This is what we are doing in the field of food safety and better nutrition for everyone. 27
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Ensure Food Safety QUALITY ADVISORS EXTERNAL COLLABORATION, RESEARCH Since 2015, each client has a quality advisor, a The company is permanently connected to unique contact person for clients, both internal university scientific research. Several organisa- and Promote Overall and external, to gather and share reliable, trans- tions, the Institut Pasteur in Lille, Clermont parent, and traceable information. University, the INSERM and INSEP have been called upon to carry out and present clinical JOB QUALITY VISITS (JQV) trials. These studies help to make progress on Better Nutrition Product quality is managed every day within our plants. One of the tools used to bring awareness to everyone in their daily activities is different themes: malnutrition among the elderly, infant digestion and nutrition. the JQV. With their agreement, an employee A PIONEER IN SEVERAL FIELDS Food safety consists in ensuring food from another service observes an operator at his workstation for roughly ten minutes. They The Research and Development means deployed have enabled the group to be a pioneer in several hygiene and safety throughout the then share what they observed. It is an oppor- tunity to point out the positive elements and fields. This is the case for soluble milk proteins rich in leucine, an essential amino acid that plays food chain. congratulate the person. When the best practices are not entirely respected, discus- a role in muscle synthesis, or the optimisation of whey drying to produce non-hygroscopic powder sions make it possible to understand why and marketed under the brand name Flowhey®. Several internal campaigns This issue is linked to that of nutritional information and, more generally, to that of give meaning to the rules in place and help the increase employee awareness. client and consumer information, which must be totally transparent. operator improve their practices.“Quality is PRODUCT FOCUS everybody’s business, so everyone is concerned by Development in the nutrition and speciality the process. From the plant manager to the opera- products market is a sustainable course of tors, everyone is involved in turn following a action. The Group’s expertise in separation predefined schedule,” the plant quality manager techniques means it can position itself on the explains. sports, medical and infant nutrition markets. CONTINUED IMPROVEMENT YOPI* APPROACH Within the plants, the continuous improvement YOPI is a global approach aimed at constantly managers help the workshops to methodically reminding all involved within a plant (internal, work on fundamental or recurring topics to external, regular, one-off) that consumers of implement sustainable solutions. These people our products can be extremely sensitive. It is are even more efficient as they regularly reflected in many actions, including communi- exchange information within the internal cation campaigns at the heart of the workshops network of continuous improvement managers. and for new employees. This enables them to benefit from the experiences and solutions implemented on other sites. STANDARDS THAT ARE HIGHER THAN EUROPEAN STANDARDS Lactalis Group standards go beyond European regulations. The Group ensures that good practices INDICATOR 80 % are shared whatever the maturity of the country. of food factories FSSC 22000 FACTORY CERTIFICATION certified The company has embarked on a food safety certification process for all its plants. With the chosen FSSC 22000 certification, based on the Target for 2025 ISO 22000 standard, players in the food indus- try can be sure that the company effectively controls the dangers related to food safety. *young, old, pregnant women, immunocompromised individuals. 100 % 28 CSR REPORT 2019 29 29
LACTALIS INGREDIENTS THE WIDER PICTURE Customer quality service: all requests are legitimate! Meeting with Jessie Braire and confidence in the relationship with clients. It is a question of learning to speak and listen who has overseen the customer to each other by considering cultural diffe- quality service for three years. rences (profession, country, regulations), but She testifies to a client-oriented also by making the exchange of information mindset, based on personalised as effortless as possible. The service manages complaints, specific requests, client audits the company is ready to open its doors, detail answering client questionnaires. Its members Ahmed Toumi, Bénédicte Doué, relations, listening skills, its processes and listen to the auditors and also manages various indicators, summaries Walid Chaari, Jessie Braire. and is called upon to contribute in validating The service handles over 600 proactivity, and a scientific specifications and terms of reference. Finally, their recommendations. But the team does of which are distributed internally. Finally, it requests per year and more than mind. the team develops a proactive strategy based not just respond to requests, it also takes the is called upon to validate client requirements 40 days of audits. on the implementation of quality reviews and lead by organising quality reviews carried out and meet their expectations: “We consider “Very early on we understood that all requests, assessments. among clients and sometimes at the client’s, these requests with the aim of making the even those that are the result of a misunders- to review all current quality issues. These Lactalis Ingredient’s commitments as reliable tanding or misuse of a product, was information “Depending on its nature, each request for infor- reviews are the subject of systematic internal as possible in a context where the specifications that required both a specific, personalised res- mation generates exchanges with the different feedback and assessment. have become more extensive and complex. ponse and was an opportunity for the company departments within the group. Industrial mana- to reflect and move forward.” Jessie Braire gers, of course, quality managers, sales staff, has been instilling this ‘client-oriented’ the purchasing department, but also supply “We are the interface of the company approach in her service for three years. With chain teams and the marketing department, significant experience in the agro-food sec- which are sometimes inspired by a new request. in all its dimensions.” tor, she uses her scientific skills (chemistry/ In short, we are the interface of the company biology) to provide information that is trans- in all its dimensions,” emphasises Jessie Braire, parent, rigorous, and educational. who is at ease in the role of spokesperson for They provide an information base shared with In concrete terms, it takes a little time, but when clients within the company, as well as being the client, a common reference for future it’s a yes, it’s a yes!” Jessie Braire concludes. Bénédicte Doué, Ahmed Toumi and Walid the ‘voice of the company’ for clients. The exchanges and are also a way of keeping up Always the scientific mindset! Chaari form the customer quality service department is also there to contribute to the to date with market developments in order alongside Jessie Braire. Each of them manages organisation and follow-up of client audits as to understand and anticipate the main trends. a stable client portfolio. This personalised support to the plant staff. The aim is to anti- The entire quality team is committed to client approach was chosen to provide continuity cipate requests beforehand and ensure that satisfaction and is on the front line when 30 CSR REPORT 2019 31
INTRODUCTION Responsible for the people Men and women are at the heart of the social issues and are in keeping with the Lactalis family business model. The main issues are • Maintaining health and safety at work, • Quality of work life, • Encouraging better professional development and inclusion. 33
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Worker Safety, A STRUCTURED APPROACH AN “OFF THE JOB” COMPONENT AT ALL LEVELS Safety culture is incomplete if the “off the job” To establish the Group’s ‘safety roadmap’, a safety part is not treated, particularly when we know a Priority seminar was organised in December 2018. Thanks that the number of accidents in the home is to the work and mobilisation of roughly one much higher than the number of accidents at hundred people, it was possible to plan for about work. Working both on safety at work and at fifteen subjects, with increasing levels of demand, home therefore makes it more natural to adopt over the next few years. the correct safety reflexes. One of the tools for The ambitions for Lactalis Ingredients and each SPECIFIC GUIDELINES DISTRIBUTED tackling the ‘off the job’ aspect in a calm manner is the safety minute, which allows any employee of its sites are to: ACROSS THE ENTIRE DIVISION who so wishes to speak in a short and unpre- The safety guidelines resulting from the safety pared manner at the beginning of a meeting, to seminar was then distributed to all employees. share a personal safety experience: something • develop an interdependent safety culture, where everyone is responsible for their own It specifies the division’s principles, values, they have seen on television, heard on the safety and the safety of others, vision, and goals. The slogan: Nothing warrants radio, read in the media, etc. Safety at work and being injured on the job. at home are always related. Another tool to get INDICATORS • involve not only managers and their teams, but also people from outside the sites, people involved in a fun way is the safety drawing to move towards zero accidents. 21.87 ACTIVE “ON THE JOB” RISK PREVENTION competition for employees’ children, illustrating Among the priorities are consignment and the risks at home and at work simultaneously. confined spaces. The division is also attentive to The winners’ drawings will appear on the safety risks related to transport and physical exertion, calendar for the following year. Finally, additio- Frequency rate 1 which are the two main causes of its accidents. nal prevention messages on current issues are Beyond the technical aspect of these problems, published throughout the year. Job Safety Visits, a great opportunity for Lactalis Ingredients cultivates a humane and Target for 2022 benevolent approach, with local communica- INVOLVEMENT AT THE HIGHEST LEVEL dialogue and immediate action This tool aims to involve the managers of all departments and tion tools: JSV (Job Safety Visits) (see focus opposite) and safety contacts, training courses, safety breaks. The division combines action- Within 48 hours of an accident occurring on a site, a telephone meeting is held between Indus- trial Management and the Safety Unit on the one 16 at all levels to prevent risk situations, if they exist, through and result-oriented goals. hand, and the Site Manager, HR Manager, Safety dialogue and persuasion that in turn must lead to the implication 0.47 Coordinator and the injured person’s manager of the person who was visited. on the other hand, to analyse the incident and How does it work? Two managers from different departments draw conclusions. go on the job to observe how a task is carried out in real CONTINUED IMPROVEMENT AND Severity rate conditions. The task may be carried out by external operators. PROGRESS STRATEGY Above all, the idea is to make people think about practices in a Lactalis Ingredients’ safety goals are set each 559 constructive and benevolent way, from a fresh, multi-disciplinary perspective. Visitors may call to mind a practice that an operator year by Industrial Management. They take the form of undertakings, which are then imple- no longer necessarily pays attention to every day. But above all, mented at each site. it is about praise. Everyone has good practices: they must be Number of JSVs carried reinforced and perpetuated. out by all managers/ month, 92% of the Each manager must carry out two 30-minute JSVs per month. goal The quantity is important. As is the quality of the JSVs. Every month, nearly 600 JSVs are carried out. Six hundred Target opportunities to talk about safety in the field, in an operational manner. To carry out two JSVs per month and per manager 34 CSR REPORT 2019 35 35
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? NOS INITIATIVES OUR Work-Life Quality A MANAGERIAL BAROMETER AND A QWL BROADENING THE COMPANY’S SOCIAL ACTION PLAN REVIEWED EVERY THREE FABRIC YEARS Since 2010, Lactalis Group has committed to Lactalis Ingredients uses a managerial barome- welcoming, integrating and supporting its ter to assess its employees’ level of implication, employees with disabilities through the their perception of the missions entrusted to Lacta’Cap programme, which was renewed in Beyond prevention in terms of health and them and their working environment. This 2018 for a further three years. The Lactalis Ingre- MANAGERIAL BAROMETER barometer is associated with an action plan to dients division implements the programme’s occupational hazards, the quality of work life improve employee satisfaction in terms of main components: INDICATORS 76 % career development within the division. Our revolves around social issues relating to equity, action plan includes several initiatives relating • events to raise awareness of disability, • keeping employees with RQTH* in employment diversity, work organisations, skills to: • improving the work environment and comfort (ergonomic equipment, work organisation, etc.), implication rate development and employability, and the (break rooms, cloakrooms, company restau- rant, workshop refurbishment, etc.), • personalised aid (funding for reduced work meaning of completed missions. • workstation layout (ergonomics, strain) and time, CESU** cheques, etc.). Thanks to these actions, the disabled worker recognition rate Target for 2022 work organisation, 78 increased from 3.5% to 5.6% between 2010 • a ccess to health/wellness services (sports and 2018. For Lactalis Ingredients, the implication of its employees can be measured by their % classes, osteopathy sessions). degree of achievement and personal development. QWL (Quality of Work Life), as conceived by Lactalis Ingredients, should enable employees to: * RQTH reconnaissance de la qualité de travailleur handicapé - disabled worker status 73.8 % • work better, • live together better, * CESU: Chèque emploi service universel - Universal • reach their potential. Employment Services Cheque Each year a QWL roadmap is drawn up with employees and staff representatives. Workplace well-being Target for 2025 75 % 36 CSR REPORT 2019 37 37
LACTALIS INGREDIENTS WHAT ARE THE ISSUES? OUR INITIATIVES Training and TRAINING PLAN CAREER PATH AND TRAINING Lactalis Ingredients training plan is based on an PROGRAMMES (DETAILS IN THE WIDER annual roadmap that is established well in PICTURE PAGE 40) Developing Skills advance: seventy percent of actions to be In terms of career progression and development, carried out are planned in January of each year. various measures have been implemented: These actions cover continued professional professional qualification certificates (PQC) for training and internal promotion along with technical professions in both production and integrating and retaining new employees. maintenance; training courses for managers. Within the division, employee training and INTERNAL TRAINING INTEGRATING NEW RECRUITS skills development addresses several issues: To expand on continued professional training, In terms of integration, several measures exist depending on the employees’ profile: on-the-job Lactalis Ingredients plans to centralise and structure internal training. This necessary training supervised by an experienced techni- • meeting the resource requirements for all professions, change for Lactalis Ingredients has several cian for industrial professions with progressive • preserving and renewing key expertise for the activity, advantages: training adapted to the specifici- validation of prior learning; internal professional • developing the skills of employees at their workstations, ties of the division’s activity by experts in the training contracts offered to recently graduated • broadening their professional perspectives within the division and the Group, profession, transfer of internal expertise, agility, engineers, and introduction seminars for and flexibility. The division, which currently has managers. Lactalis Ingredients also promotes •a nd more generally, to maintaining and perpetuating our industry, which paves the pre-employment of work-study students, 56 internal instructors, intends to increase this the way for promising, attainable career paths at all levels of study. apprentices, and trainees in order to retain these number to fully represent all its industry exper- tise. At Lactalis Ingredients, becoming an inter- future talents. On average, 60% of appren- nal instructor is a vector for internal promotion. ticeships, placements and work-study positions Internal instructors stay in their job: their training are converted into jobs each year. INDICATOR activities are treated as secondments and give 56 rise to additional remuneration. ENCOURAGING INTERNATIONAL Number of EXPERIENCES internal training Each year, young employees have the opportu- instructors nity to gain experience at Lactalis Ingredients. For two years, they hold an industrial position at an international site. Target for 2022 60 38 CSR REPORT 2019 39 39
LACTALIS INGREDIENTS THE WIDER PICTURE A successful career in Retiers The Lactalis Group has an This strong investment context creates many opportunities. efficient operational organisation based on This is how Jean-Pierre Rabu recently seized participant responsibility. This the opportunity for change. Son of a farmer, Jean-Pierre Rabu & Yann Cotrel operating principle is expressed trained as an agricultural mechanic, Jean- in the priority given to internal Pierre had a work accident in 1992. After his been able to do my bit.” New prospects then works shifts. He is keen to pass on his expe- military service, he registered with a tempo- promotion. On-site meeting in rary work agency and had his first experience opened up to him, he successfully replaced rience to young recruits both on a profes- a team leader and, from 2017 onwards, he sional level as the profession has evolved Retiers with several employees in the sector as a warehouse worker in the was asked to follow the construction of the considerably, but also on adjustments to life whose backgrounds illustrate “veal feed” department. This was the start new whey plant. As such, he took part in a in order to cope with this strange schedule: this aspect of the company’s of a remarkable career in the milk industry. study trip to Italy, observing and learning ‘A healthy lifestyle, sleep, food, work-life In 1994, he started a job as a depot operator culture. the subtleties of lactose crystallisation. “It’s balance, you need a balanced life to be able at the Reception Skimming Pasteurisation (RSP), and then had various experiences in a training course that has served us well, we to handle this constraint, be ready to seize Lactalis’ dairy hub in Retiers has 800 em- have attended all the test phases in order to new opportunities and know how to learn ployees. Each year, 170,000 tonnes of end pasteurisation and micro-filtration. In 2012, eager to learn and take on responsibilities, achieve industrial excellence,” pursues Jean– from others,’ Jean-Pierre concludes. products are manufactured: butters, cheeses, and ingredients made from milk in one of he completed a Professional Qualification the three plants there. Here, as elsewhere, Contract as a dairy production plant opera- the Group widely supports internal promo- tion and promotes local talent in a context tor: “This meant I could go back to the dairy basics and better understand our trades and “They reached out to me, I said yes, where the attractiveness of the company is an important issue. Job offers stipulate that the context in which they are performed,” says Jean-Pierre, who completed nine mon- why not,” Jean-Pierre Rabu Lactalis ensures training for each em- ths’ training at the Dairy School in Saint-Lo ployee’s position and offers suitable training Thère. “They reached out to me, I said yes, why Pierre, who appreciates the personalised Yann Cotrel has been a production techni- pathways as well as opportunities to pro- not? And the fact is it was particularly useful follow-up from the human resources teams cian for four years within the whey plant gress. The Retiers site has a new infant and to become more efficient in my position. I have with whom he talks regularly. Today he is an service (lactose powder for human consump- nutrition ingredients unit (lactose and a better understanding of how skimmers, pas- installation manager at the new whey plant, tion). His job is to optimise production and serum proteins). teurisation and microfiltration work, and I’ve where he manages the whey station and the overall environment by inspecting 40 CSR REPORT 2019 41
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