On Progress - A report on the implementation of the 10 principles in the United Nations "Global Compact"
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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
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 2
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. 3
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. 4
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. 5
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 7
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. 8
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 9
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. 10
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 11
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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 13
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. 14
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. 15
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 17
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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 19
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
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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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