On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
Communication
on Progress

A report on the
implementation
of the 10 principles
in the United Nations
“Global Compact”

Period:
June 2020 - June 2021

                        1
On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
    Communication on Progress

 A. Loacker Spa/AG

 Via Gasterer-Weg 3
 I-39054 Auna di Sotto/Unterinn (BZ)
 Tel. +39 0471 344000
 info@loacker.com
 loacker.com

 www.loacker.com
 Contact person: Hans-Peter Dejakum

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
UN Global Compact

The UN global compact (GC) is the largest
and most important initiative in the world on
­responsible corporate management. It aims
 to provide an inclusive and sustainable global
 economy based on its ten universal principles
 spanning human rights, labor, the environment
 and climate as well as preventing corruption.

The initiative’s signatories sign up to the ten
­principles, which are based on seminal UN
 ­conventions, and are committed to implementing
  them in their own sphere of influence.

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
    Communication on Progress

 The ten principles at a glance

 Human rights

                 1
          Principle
                          Businesses should support
                          and respect the protection
                          of internationally proclaimed
                          human rights; and
                                                                Principle   2
                                                                make sure that they are
                                                                not complicit in human
                                                                rights abuses.

                                        3
 Labor

                                                    businesses should uphold the freedom of
                                                    association and the effective recognition of
                                                    the right to collective bargaining;
                                Principle

                                                                        4
             5
                                                                Principle
                                                                the elimination of all forms
                                                                of forced and compulsory

                                                                        6
                                                                labour;

                            the effective abolition of child
                            labour; and
     Principle

                                                                Principle
                                                                the elimination of
                                                                ­discrimination in respect of
                                                                 employment and occupation.

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
Environment

          7
    Principle
                       businesses should support a
                       precautionary approach to
                       environmental challenges;

                                                         Principle   8
                                                         undertake initiatives

                        9
                                                         to promote greater
                                                         environmental
                                                         responsibility; and

                                     encourage the
                                     development and
                                     diffusion of environmentally
                Principle            friendly technologies.

Anti-corruption

                                    10
                                 Principle

                                      businesses should work
                                      against corruption in all its
                                      forms, including extortion
                                      and bribery.

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
    Communication on Progress

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
The CEO’s declaration
Responsible ­behavior
and a sustainable
­economic activity have
 always been part of
 the principles upheld
 by Loacker, a South
 Tyrolean family-run
 business.

                          Responsible behavior and a sus-        delivering pure goodness, we
                          tainable economic activity have        shoulder a unique responsibility
                          always been part of the principles     for both people and the environ-
                          upheld by Loacker, a South Tyro-       ment. With our contribution to
                          lean family-run business. Equal        the set of rules and regulations
                          treatment and opportunities,           enshrined in the UN Global
                          bearing responsibility for both        Compact, we are taking a further
                          people and the environment, its        step in the direction of an inclusive
                          careful use of resources as well as    and sustainable economy. We
                          fair and correct business activities   are committed to implementing
                          are indispensable for us and,          and promoting specific social
                          therefore, deeply rooted in our        and environmental standards in
                          management guide. We are firmly        line with the ten principles in our
                          convinced that objectives such as      spheres of influence.
                          delivering high-quality products
                          and services, protecting the           The following report proves that
                          environment, upholding social and      our family-run business lives
                          ethical principles and economic        the principles of the UN Global
                          success should not represent an        Compact day in, day out. We
                          element of conflict today, nor for     want to continue promoting said
                          future generations: sustainability     principles: in the company’s
                          means promoting and striking           strategic management as well
                          an overall balance between the         as in everyday life. We thank
                          economy, the environment and           everyone who wishes to support
                          one’s social responsibility.           us in this endeavor.
                          Sustainable management is
                          never a quick fix, rather always
                          embodies medium-term and               Ulrich Zuenelli
                          long-term plans which constantly
                          come with new challenges forcing       A. Loacker GmbH
                                                                 Gasterer Weg 3
                          us to act. However, it also offers     39054 Unterinn/Ritten
                          us many opportunities to develop       Italy
                          and grow. As a foodstuff producer      www.loacker.com

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
    Communication on Progress

    Human rights

                                 1 2
                           Principle

                            Businesses should
                         ­support and respect
                                                        Principle

                                                         make sure that they
                                                          are not complicit in
                              the protection of         human rights abuses.
                                ­internationally
                            ­proclaimed human
                                     rights; and

 Assessment,
 ­principles, and                                  As a responsible family-run           We systematically control the

  ­objectives
                                                   business we are bound to act in       adherence to the law as well as
                                                   an ethical way that guarantees        the observance of human rights
                                                   the dignity and rights of everyone.   across the board and along the
                                                   We support and respect the            entire value chain. For this reason,
                                                   UN Universal Declaration of           in Auna di Sotto we have opted
                                                   Human Rights as well as the ILO       for the SMETA Audit: this specific
                                                   (International Labor Organization)    audit is the most used method
                                                   Declaration on Fundamental            in the world to carry audits in the
                                                   Principles and Rights at Work         corporate responsibility.
                                                   and contribute to respect and         The corporate management guide,
                                                   implement them in our spheres of      the Loacker brand manual as well
                                                   influence.                            as the Loacker Code of Ethics and
                                                                                         Conduct include, among others,
                                                   Our corporate behavior has            the ethical principles at the heart
                                                   always been characterized by          of our approach with our business
                                                   clearly defined values such as        partners, suppliers, branches,
                                                   fairness, reliability, trust, and     public administration, political
                                                   honesty: we are committed to          institutions and trade unions,
                                                   guaranteeing sustainable and          competitors, industry associations
                                                   dignified management. We value        and society at large. The Code of
                                                   positive and open relations with      Ethics and Conduct represents a
                                                   one another, and nurture long-        binding legal framework for all the
                                                   term partnerships with our clients,   Loacker Group’s employees and
                                                   suppliers, and business partners.     company bodies.

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
Implementation and measures

              Controls and reports                  Infractions will be met by appropri-
                                                    ate disciplinary measures.
              The Loacker Code of Ethics and
              Conduct is an integral part of        Supplier selection and
              the organizational, managerial,       management
              and control models pursuant to
              Legislative Decree No. 231/2001.      Depending on availability, our
              An in-house Supervisory Body          suppliers come from the region,
              has been tasked with monitoring,      Italy, Austria, and Germany. Raw
              controlling, implementing, and        goods which cannot be grown in
              updating the rules within the Code.   Europe are sourced from Western
              Employees are called to report an     Africa, South America, the
              infraction or a suspected breach      Caribbean, and the islands in the
              of the guidelines. The reports are    Indian Ocean. We mostly purchase
              anonymous and can be forwarded        raw ingredients from producers
              to a dedicated email address,         and agree to long-term agricultur-
              the Supervisory Board, or the         al cooperation with farmers. When
              person in charge at the company.      it comes to a potential human
                                                    rights infringement, the biggest
                                                    risk for Loacker is represented by
                                                    its suppliers as it cannot directly
                                                    oversee them. We therefore
                                                    make a responsible selection of
                                                    our partner companies: beside
                                                    product quality, price or supply
                                                    conditions, respecting the Loack-
                                                    er Code of Ethics and Conduct is
                                                    also part of the selection criteria.
                                                    We are fully aware of issues
                                                    relating to the infringement of
                                                    human rights and child labor and
                                                    are engaged in tackling these risks
                                                    in the more susceptible countries.
                                                    We publish a report analyzing the
                                                    risk in specific countries based
                                                    on the Human Development Index
                                                    as well as geopolitical, macro-
                                                    economic, climate, and logistical
                                                    developments.
                                                    We invest in our personal contacts
                                                    and exchange best practices with
                                                    organizations engaged in creating
                                                    better conditions on the ground.
                                                    Some notable examples are the
                                                    German Society for International
                                                    Corporation (GIZ), its Italian
                                                    counterpart “Agenzia italiana per
                                                    la cooperazione allo sviluppo
                                                    (AICS)”, as well as the Farmstrong
                                                    Foundation and the International
                                                    Cocoa organization (ICCO).

                                                    Creating and protecting local
                                                    sources of income

                                                    Loacker’s production sites were
                                                    consciously built across areas
                                                    which feature a weak agricultural
                                                    and industrial landscape. Locals
                                                    are provided with a safe source of
                                                    income or an additional job beside

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On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
COP –
     Communication on Progress

 agriculture in the South Tyrolean      owner and manager of the dry milk     Employee training
 and East Tyrolean regions.             plant as well as be involved in its
 Together with Brimi – Milchhof         development.                          All Loacker’s workforce is
 Brixen (an agricultural cooperative                                          appropriately trained to carry
 of dairy farmers in the Valle          Loacker also relies on its own        out their tasks and roles in the
 Isarco/South Tyrol catchment           hazelnuts plantations in Tuscany.     correct manner and to respect the
 area), Loacker planned the first       It supports farmers in Tuscany,       Code of Ethics and Conduct as
 South Tyrolean dry milk plant in       Lazio, Friuli Venezia Giulia, and     well as all other legal and internal
 2018, which is productive since        Veneto by means of contracts.         regulations. All new members of
 end of 2019. In the future, milk       Long-term supply partnerships as      staff receive the relevant informa-
 and whey from the Alps will be         well as consultancy services in the   tion during induction and can read
 used to produce sweet whey,            Loacker Agro Center of Compe-         their rights and obligations in the
 skimmed milk and full fat milk         tence provide young farmers with      induction manual.
 powder for Loacker products.           new professional perspectives in
 Processing regional milk and whey      a region which is threatened by
 increases the value chain for local    internal migration. We came to
 farmers. During the reporting          an agreement with Banca Intesa
 period, Loacker and Brimi              Sanpaolo: our partners will receive
 founded Dolomites Milk GmbH:           an advantageous loan to kick off
 the corporate outfit will act as the   their new activity.

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Measuring results                                             1 2
                                                       Principle                   Principle

       Compliance                            hazelnut project: the number of
                                             participants per event averaged
       Every employee is called upon to      70 people.
       report compliance infringements
       to the Supervisory Board, which       Up until now, long-term sourcing
       was created for this purpose in       contracts were established with
       2017, or to the people responsible    around 40 agricultural companies
       for this area. During the reporting   in Tuscany, encompassing around
       period, no report was made on         500 ha; further sourcing contracts
       the infringement of human rights      are being prepared in other
       or against the Code of Ethics and     regions of Italy. The plan for next
       Conduct.                              year is to support our partner
                                             farmers with specific training
       Meetings: farming contracts           sessions to grow the hazelnut
                                             plantations to ensure farmers will
       Five meetings were organized          grow high-quality products in line
       during the reporting period           with Loacker’s growing guidelines.
       for farmers taking part in the

       Induction

       Session hours                         Participants

               1,472                                   202

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COP –
     Communication on Progress

12
Labor

Principle   3 4 5 6
   businesses should
 uphold the freedom
                            Principle

                                   the elimination
                                       of all forms
                                                              Principle

                                                                       the effective
                                                                    abolition of child
                                                                                              Principle

                                                                                                      the elimination
                                                                                                    of discrimination
   of association and                of forced and                         labor; and                    in respect of
 the effective recog-            compulsory labor;                                                  employment and
 nition of the right to                                                                                   occupation.
collective bargaining;

Assessment,                                         Our management is based on
                                                    clear responsibilities and relies
                                                                                         extra mile when labor regulations
                                                                                         come into play. Health and safety

­principles, and
                                                    on everyone’s participation: we      is a key priority: our health and
                                                    treat each other as equals and       safety management measures

 ­objectives
                                                    value everyone’s opinion. We         encompass preventive strate-
                                                    create a working environment         gies and people. We employ a
                                                    where our employees act              “zero accidents” policy and are
                                                    independently and nurture a          committed to offering a safe
              As an international company           “circular culture”: depending        working environment as well as
              we are in contact with people         on individual skills, people         avoiding health risks and work
              from different cultures every         take an active responsibility in     accidents.
              day. Mutual respect, tolerance,       their department. We require
              openness, and understanding           and promote industry-specific        These fundamental principles
              are indispensable prerequisites       and personal development via         are enshrined in the Loacker
              when approaching one another.         targeted training offers. We are     management guides, the Code
              We do not tolerate discrimi-          an active player in our society      of Ethics and Conduct as well as
              nation in any shape nor form          and support its development          corporate policies.
              against people insofar as their       thanks to targeted measures and
              gender, origin, religion, opinions,   social projects. We recognize the
              sexual orientation, language,         right of association and the right
              nationality, age, or disabilities     to collective bargaining as well
              are concerned. Loacker cate-          as fair and equal salaries.
              gorically shuns every form of
              forced labor or child labor as well   As an international company,
              as other forms of exploitation in     all our activities are carried
              its production plants as well as      out in line with national and
              when dealing with its suppliers or    international standards and
              branches.                             norms, yet we always go the

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COP –
     Communication on Progress

 Implementation and measures

                                 Collective bargaining
                                 and salaries

                                 We implement relevant national
                                 collective bargaining agree-
                                 ments and standard wages
                                 across all departments. Our
                                 minimum standards are based
                                 on adhering to current national
                                 labor regulations and minimum
                                 income. When it comes to
                                 additional corporate perfor-
                                 mance we do not differentiate
                                 between full-time or part-time
                                 employees. A work council is
                                 also active in Loacker’s Austrian
                                 office.

                                 Complaints

                                 We do not tolerate discrimi-
                                 nation, child labor or forced
                                 labor in any shape or form: all
                                 employees who do not respect
                                 the norms of our Code of Ethics
                                 and Conduct or are witness to
                                 an infringement must report
                                 straightaway to the Supervisory
                                 Body, the person responsible for
                                 complaints, or the HR Depart-
                                 ment. Every complaint will then
                                 be assessed by an internal
                                 taskforce and disciplinary
                                 measures will be taken against
                                 any form of discrimination or
                                 breaches against the Code.

                                 Equal opportunities

                                 New vacancies are published
                                 using a standardized process;
                                 if interested, employees or
                                 potential candidates can apply
                                 regardless of their gender,
                                 origin, religion, opinions, sexual
                                 orientation, language, national-
                                 ity, age or disabilities. We offer
                                 equal opportunities to all em-
                                 ployees and the opportunity of
                                 making a career in the company         development opportunities,
                                 with promotions ranging from           internships, and entry-level
                                 managerial positions to industry       positions for high-school grad-
                                 expert roles. The assessment           uates. We face the challenges
                                 of a worker’s performance is           of a changing demographic with
                                 carried out every year during          training offers for long-time
                                 an “employee development               employees. We guarantee
                                 interview” and is a fair, objective,   work-life balance by offering
                                 and accountable process.               part-time working opportunities;
                                 We promote the development             people with disabilities are
                                 of young people with a wide            offered an inclusive working
                                 offer in training, professional        environment.

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Principle   3 4 5 6       Principle                      Principle                      Principle

                                                                                   at work. The managers and
                                                                                   responsible employees ensure
                                                                                   measures are adhered to and
                                                                                   implement preventive measures,
                                                                                   too.

                                                                                   Employee training:
                                                                                   health and safety
                                                our Corporate Policy. The legal
            Health and safety                   requirements are not the only      All employees working in Italy
            management system                   element behind the implementa-     and Heinfels must complete a
                                                tion of said measures, as we are   comprehensive and transversal
            Health and safety at work are       also BS OHSAS 18001 certified      basic training on health and
            one of our top priorities. We       (certification issued by the       safety. Moreover, the Loacker
            guarantee and comply with the       British Standard Occupational      Academy’s training program
            legal requirements as well as       Health and Safety Assessment       also offers several sessions
            providing for safety at work and    Series). A Health and Safety       on, among others, prevention
            promoting health; the basic prin-   Committee is available at every    and health, work-life balance,
            ciples and measures relating to     location to constantly guarantee   ergonomics at work, resilience,
            health and safety are included in   and improve health and safety      and time management.

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COP –
     Communication on Progress

 Measuring results

 Complaints                             Wellbeing and prevention               Loacker and its
                                                                               multigenerational workforce
 Every employee is called to            People are considered in their
 report infringements against           entirety – their physical and          During the reporting period we
 the equal opportunity principle,       psychological components as well       carried out an employee survey on
 discrimination, or a breach of labor   as their social health. The Human      “Change of values and co-opera-
 regulations. No complaints were        Resources Division coordinates         tion among different generations”.
 submitted during the reporting         measures to promote health.            We questioned our workforce’s
 period.                                These measures are developed           different generations on their
                                        together with the Office for Safety    values and their implementation
 Reports and controls: health           at Work, Safety Speakers, Occu-        in the company. All employees
 and safety                             pational Physicians, and members       perceived the regulations con-
                                        from Management. The aim of            cerning working hours, teamwork,
 We optimize, monitor and control       regular surveys is to strengthen       or multigenerational cooperation
 health and safety regulations          physical and psychological health,     as positive.
 implementing the following             by assessing, among others,
 measures: regular external and         topics such as monitoring of           Development of a
 internal audits, carrying out risk     psychological stress; the same         management guide
 assessments, registering and           aim is shared by training sessions
 assessing work accidents and           and awareness raising campaigns.       During the reporting period, a
 “near misses”, company visits,         However, managing health and           large-scale process was kicked
 ergonomic and safe layout of the       safety is not only circumscribed       off to draft a management guide
 working spaces as well as raising      to the working environment of our      with the contribution of Loacker
 awareness and implementing             employees and to avoid accidents       employees. This model, combined
 training sessions for employees.       at work. It also encompasses pre-      with the code of Ethics and
                                        ventive measures and considers         Conduct and the corporate guide,
                                        people in their entirety. Therefore,   represents a binding fundamental
 Health and safety training             we offer our employees numerous        basis for all management in the
 sessions                               possibilities to keep healthy          company. Other measures will
                                        and to increase their personal         include drafting a management
 Hours                                  wellbeing. The office workspaces       handbook as well as developing
                                        were devised to be ergonomically       a tailored training program for
                                        fit for purpose, and employees         managers.
                                        receive tips on behavior which will    The Leadership guidelines
                                        boost their health when working in     were developed with employee

             3,820                      front of a screen. The Production
                                        Divisions feature shift work or
                                        work on an assembly line: we
                                                                               participation. In addition to the
                                                                               corporate mission statement,
                                                                               these guidelines are a binding
                                        focus on providing regular shifts      basis for all managers in the
                                        to reduce health complications.        company.
                                        Health training as well as             The supplementary management
                                        informative sessions on work and       handbook deepens the opera-
     Participants                       life balance or resilience empower     tional aspects of management
                                        our employees to focus on their        and was given to all managers.
                                        health.                                The guidelines and the handbook
                                                                               are available to all employees.
                                                                               The tailor-made training program

              626                                                              for managers is based on the
                                                                               contents of these documents.

16
Principle   3 4 5 6    Principle                        Principle

                                             The Randstad Award as
                                             most desired employer in
                                             north-eastern Italy
                                                                                           Principle

                                             In 2015 and 2016, Loacker
                                             received the Randstad Award
                                             for eastern Italy. According to
                                             the survey, Loacker met the 10
                                             most important criteria which
                                             make out desirable employers:
                                             a competitive salary and social
                                             contributions, the opportunity of
                                             having a career, a strong man-
                                             agement, a pleasant working
                                             environment, a safe working
                                             environment, work-life balance,          Working contracts
                                             financial stability, interesting tasks
                                             during the working hours, good           98.4% of employees are part of a
                                             training standards, and social           collective bargaining scheme or
                                             responsibility.                          on minimum wage.

                                                  Men and women in the
                                                       company

                                                  52%                 48%
                      Management                                                              Administration
                       (78 people)                                                             (304 people)

                81%                  19%                                                54%                    45%

                                                    Loacker Group
                                                  employees in 2019:

                                                     1,075

            Production and other relevant areas                                             Loacker Stores
                       (680 people)                                                           (91 people)

                53%                  46%                                                34%                    66%

                                                         Disabled
                                                        employees
                                                            6
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COP –
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18
Environment

         Principle   7 8 9
                      businesses
                 should support
                                         Principle

                                             undertake initiatives
                                              to promote greater
                                                                           Principle

                                                                                      encourage
                                                                           the development and
                a ­precautionary                   environmental                     diffusion of
                     approach to               responsibility; and              environmentally
                  ­environmental                                                         friendly
                      challenges;                                                 technologies.

Assessment,
­principles, and
 ­objectives
        We are firmly convinced that           production; we avoid or try to      green issues and questions and
        objectives such as delivering          minimize the negative effects       raise awareness of these matters
        high-quality products and              our business may have on the        in a targeted manner among our
        services, protecting the envi-         environment; we endeavor to         employees and stakeholders.
        ronment, upholding social and          reduce the use of resources and
        ethical principles and economic        increase resource efficiency
        success should not represent an        when producing our products
        element of conflict today, nor for     and during transport. We also
        future generations. Protecting         pay attention to sourcing a high
        nature by means of our corporate       number of sustainable, organic
        initiatives is both our duty and a     raw materials.
        challenge we face every day due
        to our responsibility toward the       Every decision-making process
        environment.                           systematically considers environ-
                                               mental criteria, implements green
        We systematically integrate            technologies, and constantly
        corporate environmental protec-        improves environmental protec-
        tion measures and are committed        tion within the Loacker group. We
        to green and resource-efficient        promote the understanding for

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COP –
     Communication on Progress

 Implementation and measures

 The environmental protec-             Saving energy:                      wastewater pollution as limited
 tion management system                heat recovery                       as possible: in Heinfels and Auna
                                                                           di Sotto we installed sludge, fat,
 As of 2001 the Loacker                The dispersed heat from the         and oil filters before the materi-
 production plants have been           baking process is used in a         als end up in the sewage system.
 certified pursuant to ISO 14001,      targeted manner in all our          Readings prove our wastewater
 the international environmental       production facilities: indeed,      is biodegradable. We ensure we
 management system, and are            heat recovery installations         use water parsimoniously, and
 subject to a yearly audit. National   siphon the heat from the oven for   we do so by using water-saving
 and regional documents and            heating purposes and prepare        technologies in our bathrooms.
 regulations are also respected.       warm water. We only use oil to
 Our transversal environmental         cover peaks in production levels.   Waste and recycling
 protection management system          Thanks to heat recovery we
 focuses on a preventive culture       saved approximately 2.4 million     Our waste policy focuses on
 which is systematically planned,      liters of fuel oil between 2013     not creating waste in the first
 monitored, and streamlined.           and 2018; this equals approxi-      place and to recycle as many
 We are in constant contact with       mately 7,500 tons less Co2.         resources as possible. The waste
 external suppliers and business                                           we do generate is separated into
 partners to achieve the required      Emissions                           different groups, such as paper
 synergies for the constant                                                and cardboard, plastic or wood
 improvement of the environ-           Our company’s activities have       and is then sent to be recycled.
 mental protection management          a small emission footprint.         56% of our waste is paper and
 system.                               Modern technologies allow us        cardboard, followed by 13%
                                       to minimize levels across our       plastic and 9% wood. The majority
 Loacker sustainability                production sites, so much so        of our remnants can therefore
 report                                that they are below the required    be recycled. Only two percent
                                       legal thresholds. To reduce         of the entire waste production is
 We published the first Loacker        fumes produced by cars’ exhaust     composed of polluting waste, for
 sustainability report in 2015,        pipes, we increased our fleet       example oils filtered from waste-
 following preparatory work and        of vehicles with two additional     water. We send polluting waste to
 dialogues with our stakeholders.      e-vehicles. Employees will be       specialized service providers who
 It also documents overall             able to use these for taking care   guarantee their safe disposal.
 fundamental values, measures,         of outdoor areas as well as for
 and results in environmental          business trips. The e-vehicles      Saving and optimizing
 protection.                           are recharged with electricity at   packaging
                                       our docking stations: as all our
 Green energy                          electricity is sourced from green   Thanks to several different
                                       energy sources, driving with        measures, over the course of
 100% of our electricity comes         this system produces a net zero     the last years we have reduced
 from green energy sources,            carbon footprint.                   the amount of packaging and
 namely reusable energy sources                                            optimized current packaging
 such as water and wind.               Water use and wastewater            solutions. We standardized
 Moreover, during May 2011,                                                the packages to ensure that
 we installed a photovoltaic           Water quality plays an important    more products could be placed
 infrastructure which produces         role in production. We require      within the same package. Wafer
 more than 66,000 kWh of               water to make our dough, and        products are primarily packaged
 electricity. We still need gas to     it has to be flawless. This is      in specially developed packaging
 heat our ovens, used to produce       also why we built the Loacker       wrappers for long-lasting baked
 wafers. Unfortunately, existing       Production Plants in locations      goods. Display packaging and
 technology does not allow us to       featuring a considerable amount     outer packaging, transport
 replace it with another greener       of drinkable water. This is just    packaging solutions as well as
 alternative. In June 2018, we         one of the many reasons why         other displays are made using
 switched from propane gas to          protecting water is one of our      cardboard. In cooperation with
 methane in the Auna di Sotto          top priorities and concerns. In     our largest packaging suppliers
 plant, sourcing it from the public    Heinfels, besides the already       we managed to reduce the CO2
 grid: this allows us to achieve       existing water network, we          footprint in primary packaging
 savings to the tune of 40,000         created our own “tap” to access     by 2%. In 2018, we invested in a
 kilometers of transport, which        the sources of drinkable water;     second new stretcher in Heinfels
 was the distance covered by our       this allows us to supply and        after a material use test. This
 vans transporting propane gas         have independent control of         covers palettes with a stretch
 up until now.                         the source water. We keep           film to be protected during

20
Prinzip   7 8 9                  Prinzip                        Principle

loading. The new machine allows        mental protection management          period, three electric cars
us to save approximately 3 tons        system. At the forefront of the       were purchased primarily to be
of plastic film a year.                optimization process we have          used on business trips. Several
                                       implemented measures which            eco-friendly electric vehicles
Moreover, we are currently             aim to reduce empty cargo and         were purchased for the sales
working hard to reduce and             increase transport optimization.      trips to the two companies in
optimize the recyclability of          When selecting our logistics and      Tuscany (220 and 150 ha). The
packaging materials. Thanks to         transport suppliers we consider       Loacker locations of Auna di
a new type of heat-sealing film        their measures when it comes          Sotto and Heinfels were fitted
we want to achieve an improved         to sustainability and protecting      with two docking stations each
recycling capability and a             the environment, i.e. the layout of   for e-cars which can be used for
significant reduction of materi-       their fleets, environmental certi-    free by employees, visitors, and
als. Even as far as cold-sealing       fications, or KPI transparency. In    suppliers.
films are concerned, we are            cooperation with our transport
currently looking at ways to           partners we pay attention to          Green agriculture
achieve savings. As soon as both       use trucks employing natural
projects are completed, we will        gas. This results in saving 20%       We avoid using pesticides to
be saving approximately 15-20%         in CO2. We also assess the use        ensure a sustainable growing
of the entire amount of films, in      of trucks using liquid nitrogen       culture on the hazelnut planta-
other words a total of 300,000 kg      gas (LNG) which would reduce          tions in Tuscany. A 1.5-m wide
of films.                              emissions by 100%. The car            strip coasting the row of trees
                                       fleet of our transport partners       is kept free mechanically from
Purchasing raw materials               is made up exclusively of trucks      any weeds: the soil is loosened,
and supplier selection                 belonging to the Euro 6 category.     and the surface capillaries are
                                       To reduce the number of trips,        interrupted to maintain humidity
We source our raw materials            containers with a greater             levels in the soil constant, ensur-
directly from producers and sus-       capacity are used more than any       ing trees can make use of it for
tainable companies whenever            others. By using special contain-     longer periods of time. Irrigation
possible, or we enter into long-       ers, we increase loading capacity     water can thus be saved. The
term contracts with farmers.           by approximately 15%. We pay          measures to guarantee a green
When selecting our suppliers,          attention to optimal truck loads      agriculture policy are document-
one of the assessment criteria is      and group the deliveries for our      ed by agriculture protocols.
proving they have a standardized       production plants. By creating
quality management and envi-           a precise arrangement plan,           Lean management:
ronmental management system            we avoid dead time for trucks         targeted resource use
in place (which also covers trans-     which in turn will not require any
port, packaging, and disposal of       unnecessary, energy-intense           The lean management project
the material after it has served       cooling of the trailers.              delivers basic and continuous
its primary use), a sustainability                                           training to employees at a
certification, organic certificates,   Green mobility and                    recognized Institute for Lean
an IFS certification as well as a      e–mobility                            Management in Austria.
transparent supply chain.                                                    During the training sessions,
                                       Avoiding the use of private           employees will develop practical
Transport and logistics                vehicles as well as boosting          optimization projects to promote
                                       green transport is promoted           sustainable work in the company.
Avoiding and reducing CO2              by Loacker thanks to different
emissions as well as air               measures, e.g. the use of
and sound pollution when               company shuttle buses for our
transporting goods and people          employees reduces traffic on
is a key goal of our environ-          the roads. During the reporting

                                                                                                                   21
COP –
     Communication on Progress

 Measuring results

                                 Yearly environmental report            creates an energy balance sheet
                                                                        for each location every four
                                 We register our key figures relating   years. The data assessment and
                                 to energy use as well as CO2           interpretation are documented
                                 emissions every year and docu-         in the audit report which also
                                 ment the findings in our corporate     contains practical measures to
                                 environmental report. We use           optimize energy efficiency or
                                 these numbers to create improve-       the whole process. The energy
                                 ment measures for the efficient        audit report published by external
                                 and green use of resources.            experts proves to Loacker how its
                                                                        production sites in Auna di Sotto
                                 Energy audits                          and Heinfels use energy efficiently
                                                                        and that the company wants to
                                 An external audit team registers       increase its savings measures in
                                 and analyses data on energy            the future.
                                 requirements, use, sourcing and

22
Key figures*

                         Waste and            CO2 reduction:
                         recycling            CO2 savings
                         Recycled remnants:   by heat recovery:

                         94%                  1,939 t
                                              CO2 savings
                                              by green electricity:

                                              4,447 t
                                              CO2 savings
                                              via photovoltaic installations:

                                              8t
                                              Total CO2
                                              savings:

                                              6,395 t

Heat recovery
Fuel oil savings banks
to heat recovery:

611,816 l

Electricity use
Electricity during the reporting period
was provided using

100% green electricity.

                                              Lean Management
                                              Employees who took
                                              part in a training session:

                                              163
                                              Projects:

                                              124

                                              *The key numbers were taken from the 2018.

                                                                                           23
COP –
     Communication on Progress

24
Anti-corruption

           10
         Principle
                                              businesses should work
                                              against corruption in
                                              all its forms, including
                                              extortion and bribery.

Assessment,
­principles, and
 ­objectives
        Loacker stands for fair, trans-       resentatives. As a local family-run
        parent, and honest business           business with a rich history in
        practices: we do not tolerate         the region we are committed to
        corruption in any shape nor form.     our locations. We take our social
        This includes extortion, bribery or   work seriously and contribute to
        illegal benefits.                     sustainable development projects
                                              on the ground. Our corporate
        We are an independent company         responsibility also includes
        and not affiliated to any political   engaging in the social and cultural
        party and do not accept direct        life of our regions, and we pitch in
        or indirect donations to favor        by shaping the narrative to ensure
        political parties, movements,         it becomes a worthy and modern
        subcommittees, or political rep-      principle.

                                                                                     25
COP –
     Communication on Progress

 Implementation and measures

 Controls and reports                  process. It also created an           Employee training
                                       in-house Supervisory Body
 In 2017 Loacker implemented           consisting of an external lawyer,     We raise awareness among our
 an organizational, managerial,        a corporate consultant, and           employees by sending regular
 and control model pursuant to         the head of the Loacker legal         information via newsletters, our
 Legislative Decree 231/01. The        department: it is tasked with         employee magazine, or training
 model monitors the adherence          monitoring, controlling, and          sessions. The core principles
 to laws and in-house rules as         implementing as well as updating      on anti-corruption and data
 well as the Code of Ethics and        the Code of Ethics and Conduct.       security are taught to every new
 Conduct insofar as anti-cor-          Employees are called to report        employee during their induction
 ruption is concerned. Should a        a breach or a suspected in-           and will also be repeated in their
 conflict of interests arise among     fringement of the Code of Ethics      induction brochure.
 the Board of Directors, manage-       and Conduct or other legal
 ment or other employees, they         regulations in writing or orally
 are duty-bound to report said         to the Supervisory Body or the
 issue to the relevant person and      relevant person in the company.
 the Supervisory Body.                 Employees are also duty-bound
                                       to control that suppliers and
 Every business operation              branches follow and respect the
 must be correctly registered,         ethical guidelines in the Code of
 approved, traceable, appropriate,     Ethics and Conduct in their unit
 and coherent. When exercising         or department. Measure will be
 one’s duties, accepting presents,     swiftly adopted should genuine
 payments, material benefits or        doubts arise relating to unethical
 other benefits in any shape or        behavior.
 form from clients, suppliers, civil
 servants, or other third parties      Data protection and informa-
 is not allowed. Insofar as public     tion security
 authorities and institutions are
 concerned, all employees and          Protecting data and information
 members of company organs are         provided to use by our employ-
 duty-bound to act in accordance       ees, clients, suppliers or business
 to the law and in a transparent       partners is our top priority.
 way, maintaining the principles       Several security measures
 enshrined in the Code of Ethics       based on ISO 27001 reduce
 and Conduct.                          the risks of data misuse and
                                       guarantee overall data security.
 To control the adherence of           Every employee with a computer
 these guidelines, Loacker             will receive training on data
 established a report and control      protection during our IT security
                                       management module.

                                       Measuring results
                                       During the analyzed period no reports, complaints, pecuniary or other
                                       fines were implemented due to a breach of the legal framework relating
                                       to anti-competitive behavior, among others corruption or the establish-
                                       ment of a cartel or monopoly.

26
Company profile
               Alphonse Loacker founded the            wafer and chocolate specialties
               family-run business in 1925. Over       are in Auna di Sotto/Unterinn
               the course of the years it went         (South Tyrol/Italy) and Heinfels
               from a small regional bakery to         (East Tyrol/Austria). In Tuscany
               a brand recognized in the whole         Loacker also relies on two
               world whose wafer and chocolate         hazelnut plantations. Moreover,
               specialties bring joy to clients in     Loacker manages seven Loacker
               more than 100 countries. The two        Stores including their Loacker
               production plants which create          Cafés and Brand Shops.

                                                       LFH GmbH
                                                           Family Holding

                                                     A. Loacker AG
                                                      R&D Production
                                                     Marketing, Sales (IT)

 A. Loacker                     A. Loacker &                           Loacker            Loacker
 Konfekt GmbH                   Söhne GmbH                             USA Holding Inc    Deutschland
 Production (AT)                Sales Trentino/AltoAdige (IT)          Holding (USA)      GmbH
                                                                                          Sales (DE)

 Loacker                        Loacker                                Loacker
 Moccaria                       Moccaria                               USA Inc
 International                  Italien GmbH                           Sales (USA)
 GmbH                           Franchising (IT)
 Franchising (AT)

                                Loacker
 A. Loacker                     Tenuta Corte Migliorina
 Tourismus                      SVL
 GmbH                           Agricultural Enterprise
 Castel Heinfels (AT)           (Toscana - IT)

                                                                             Mission:
                                Loacker
                                Middle East DMCC
                                                                             We deliver light,
                                Regional Head Office
                                Middle East (VAE)
                                                                             tasty snacks bursting
                                                                             with pure goodness
                                Dolomites Milk GmbH                          to people in the
                                                                             whole world.
                                Production
                                Derivatives of Milk (IT)

                                                                                                        27
COP –
     Communication on Progress

 Product portfolio
                                    Loacker’s product portfolio          high-quality ingredients and do
                                    encompasses wafer specialties,       not feature:
                                    chocolate snacks, chocolate bars,
                                    refined patisserie specialties and   •    colorings
                                    chocolate with flavored ganache.     •    preservatives
                                    All Loacker wafer and chocolate      •    hydrogenated fats
                                    specialties are prepared using       •    aromas
                                                                         •    genetically modified ingredients

 Strategic business fields (SBF)

                                                     INDULGENCE

          Chocolates              Patisserie                     Patisserie                    Sweet biscuit
                                                                                               assortments

          Chocolate bars          Chocolate bars                  Chocolate wafers             Wafers

          CHOCOLATE                                                                                         COOKIES

                                                      NUTRITION

 Product Varieties

                           22                             46                                    117
                       Product                           flavours                                formats
                       families

28
Markets
    Loacker products can be
    purchased in over 100 countries in
    the world. The strongest markets
    outside Europe are Saudi Arabia,
    South Korea, Israel, China, and the
    United States. Italy represents its
    strongest market; indeed, Loacker
    is the wafer leader on the national
    market and boasts a 57% market
    share.

                                          29
COP –
     Communication on Progress

 Certifications

 Awards

 Sweets Global Award             Sapore dell‘Anno       Randstad Award                  Product of the
 “Honours outstanding            “Flavor of the Year”   “The most attractive            Year – Italy
 personalities”                  2012; 2013; 2014       employer” in North-East Italy   2017:
 2007                                                   2015; 2016                      Loacker Cacao & Milk,
                                                                                        2018:
                                                                                        Loacker Chocolate Bars

30
Overview

                                               957
                                               million units of

                        1,075
                                               manufactured
                                             wafer and chocolate
                                                 specialties

38,796
                        employees work for
                        the Loacker Group

  tons of wafer and
                                                                   355,64
chocolate specialties                                              million Euro total
                                                                        turnover

                                                                                        31
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