Sustainability Report 2019
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We stand for sustainable services 92 % of all plant raw 50 % of own slaughtering materials came from in 2019 carried animal Europe in 2019. welfare labels (incl. organic). 98 % of all animal raw 97 % of fish and seafood materials came from came from sustainable Europe in 2019. sources in 2019. In 2019, energy procure- In 2019, greenhouse gas ment was 9 % lower than emissions decreased by 10 % in the previous year. on the previous year. 56 % of the energy 86 % of waste was procured (electricity, heat, recycled in 2019. fuel) in 2019 came from renewable sources. In 2019, water withdrawal In 2019, 100 % of production was 5 % lower than in the volume came from companies previous year. certified to the Global Food Safety Initiative (GFSI).
Contents 2 Preface 4 Who we are and what we do 6 S ustainability strategy and management 8 Sustainability strategy and management 10 Material topics 11 Our stakeholders 12 Products and procurement 14 Sustainable procurement of vegetable products 16 Sustainable procurement of animal products and animal welfare 20 Environment and resources 22 Climate 24 Food loss and resource efficiency 26 Water 28 Employees and society 30 Employment conditions 32 Occupational health and safety 34 Food safety 36 Responsible market player and social engagement 38 Key indicators 39 Products and procurement 41 Environment and resources 45 Employees and society 48 GRI 54 Contacts Up-to-date information about Bell Food Group Ltd can be found on the internet at www.bellfoodgroup.com. Details about our sustainability engagement can be found at www.bellfoodgroup.com/cr-en. 1
Sustainability Report of the Bell Food Group 2019 Preface We accept our responsibility for society and the environment. Lorenz Wyss Chairman of the Group Executive Board 2
Dear Readers The past few months have made it abundantly clear to all of us: the global challenges facing us can only be overcome if we all work together and if each and every one of us makes a contribu- tion to society rather than focusing on our own well-being. We accept our responsibility for society and the environment. This is why we are committed to sustainability: as a fair employer for our employees and as a responsible economic actor aiming for healthy corporate development. With regard to the environment, we focus on using our resources efficiently, reducing our waste and deploying state-of-the-art technologies to protect the climate. We also have a special responsibility in the sense that our actions, our decisions and our corporate values have a direct or indirect impact on many parties involved in the value chain, such as suppliers, trading partners, customers, producers and farmers. As one of our three corporate missions, sustainability – in addition to quality and taste – plays a key role in our corporate conduct, through which we want to differentiate ourselves from our competitors and serve as an example for our sector. Our sustainability strategy defines the basic values that apply to the whole Bell Food Group. It is based on three pillars: “products and pro- curement”, “environment and resources” and “employees and society”. We are aware of the current relevance and strong focus of politicians and the media on certain sustainability topics along our value chain. Many consumers have become very aware of issues relating to responsible consumption and a sustainable lifestyle. Animal welfare, the use of antibiotics, food safety and hygiene, a company’s carbon footprint, climate protection – as one of the largest meat and convenience producers in Europe, we believe it is not only essential but also a matter of principle for us to engage with these topics. We invest in know-how and resources that will allow us to continuously improve, such as the effective sustainability manage- ment system that we are currently implementing for all corporate units. We will also implement the e3m energy management system across the Group by 2024. Transparency in the area of sustainability is a central and important element in ensuring that we as a company remain credible and accountable. We are proud to have laid the foundation for detailed and transparent reporting in compliance with the standards of the Global Reporting Initiative (GRI) with this first Sustainability Report 2019. Lorenz Wyss Chairman of the Group Executive Board 3
Who we are The Bell Food Group is one of the leading producers of meat and convenience products in Europe, and it is the market leader in Switzerland. The roots of this company steeped in tradition stretch back to 1869, when Samuel Bell opened his and what we do first butcher’s shop in the inner city of Basel. Today, the product range includes fresh meat, poultry, charcuterie and seafood as well as ultra-fresh, fresh and non-perishable convenience products such as salads, sandwiches, pasta, sauces and dressings, and spices. With the strategic brands Bell, Eisberg, Hilcona and Hügli, the Group meets a diversity of customer needs. More than 12,000 employees in 15 countries work hard every day to prepare top- quality products that give great pleasure to millions of consumers. The following diagram is a simplified presentation of the Bell Food Group’s value chain, from the procurement of the raw materials to the end consumer. Procurement of raw materials Logistics Production Agriculture Distribution, delivery Processing, production Slaughtering, cutting Sales volume Finance and workforce 2019, in million kg 2019 Fresh meat Charcuterie Sales revenue in CHF billion 55.0 107.4 4.1 Poultry Fish and seafood EBIT (adjusted) in CHF million 162.1 7.6 131 Convenience Total Workforce 200.5 532.7 Number of employees (FTEs) 12,195 4
Logistics Consumption and trade Distribution, delivery End consumer Business areas 2019 Bell Switzerland Bell International Convenience Sales revenue in CHF billion Sales in CHF billion Sales in CHF billion 2.0 1.0 1.1 Locations Locations Locations 13 25 27 Employees Employees Employees 3,400 3,800 5,000 Product ranges Product ranges Product ranges Fresh meat, poultry, Poultry, charcuterie Ultra-fresh, fresh charcuterie, seafood and non-perishable convenience products 5
Sustainability Report of the Bell Food Group 2019 Sustainability strategy and management The Bell Food Group’s sustainability strategy provides the basis for our commitment to sustainability. Sustainability is not only of strategic importance for the Bell Food Group but also essential at the operational level. The Head of Sustainability reports directly to the CEO of the Bell Food Group. This underlines the priority given to this topic: at the Bell Food Group, sustainability is a matter for management. It is the declared objective of the Bell Food Group to constantly expand its sustainability engagement. Along the entire value chain. Everywhere that we can make a contribution to further development. As an international company, we want to accept our responsibility towards all our stakeholders, the environment and society. 6
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI The sustainability strategy defines our directions of action, focal topics and objectives. Christoph Schatzmann Head of Sustainability & Quality Management You’ve been Head of Sustainability & Quality Does sustainability also play a role in your What are the sustainability objectives of the Management at the Bell Food Group for private life? What do you personally do to Bell Food Group? several years. What is the importance of make your everyday life more environmen sustainability in your position with the Bell tally compatible? A topic very close to my heart is the efficient Food Group, and where does your motiva use of our resources. Here we still have much tion lie? Yes, certainly. If you work with sustainability potential, in particular in the area of energy. We every day, you become very aware of the rele- therefore produce the energy that we need Sustainability is one of the Bell Food Group’s vant topics. And you take care to act in a man- ourselves, whenever possible. The best exam- three corporate missions. It stands for sus- ner that is friendly to the environment in your ple of this is our PASplus poultry fattening tainable performance throughout our produc- personal life. For example, I recently checked plant. The electricity is generated by solar pan- tion value chain. Our sustainability strategy our household’s energy consumption with the els on the roof, and the heat needed for the adopted by the Board of Directors defines our help of a checklist supplied by our energy pro- chicks is generated via a sophisticated heat directions of action, focal topics and objec- vider. The results showed us where we can still recovery and heat pump system. We success- tives. With the implementation of the sustain- save on power and energy, and we now want fully use waste heat to create an additional ability strategy, all of us together are making to exploit this potential, of course. space – a cosy winter garden for the animals – an important contribution towards fulfilling that can be used throughout the year. our vision – “Together to the top” – and that’s great motivation for me. Looking ahead, why are you confident that In our facilities we also use high-pressure heat the sustainability strategy can be imple pumps whenever we can, as this allows us to mented? use the waste heat generated by our cooling units ourselves or make it available to third par- First of all, I would like to say that we’re on ties. We will implement an exemplary project course overall in the implementation of our this year at our poultry abattoir in Zell: we want sustainability strategy and the achievement of to use waste heat to cover the heat consump- the defined objectives. I’m personally very tion of the entire facility and to also provide happy about this. It shows that people at all district heat to the municipal school buildings. levels of all companies of the Bell Food Group We stand for sustainable services and will con- are working with commitment and passion to tinue to work with great innovative power and ensure that we achieve our common objec- entrepreneurial acumen to ensure sustainable tives. This gives me great confidence about production throughout the whole value chain. meeting future challenges. 7
Sustainability Report of the Bell Food Group 2019 Sustainability strategy and management GRI Standard Sustainability strategy The sustainability strategy uses three pillars to classify the Bell Food Group’s responsibili- G RI 102-16 The first sustainability strategy adopted by the ties: Bell Food Group came into force in 2013. It was revised in 2016 and has applied to every busi- 1 “Products and procurement” ness area of the Bell Food Group since 2017. The Bell Food Group is committed to manu- facturing ecological, animal-friendly and The sustainability strategy covers all the rele- socially responsible plant and animal vant fields of action and topics as well as the products. The focus falls on the underlying organisational framework conditions for im- production conditions, and for animal plementation and control. The business areas, products specifically on the welfare of the divisions and locations work under very diverse animals. conditions in markets with different require- ments. It is therefore all the more important 2 “Environment and resources” that all corporate units pursue the same stra- The Bell Food Group respects the environ- tegic objectives, even if the specific objectives ment and handles resources carefully. are adjusted to the different framework condi- Here, water and energy resources and the tions. related emissions take centre stage. As a production company, the Bell Food Group attaches prime importance to resource efficiency and the avoidance of waste and losses. 3 “Employees and society” The Bell Food Group wants to be an attrac- tive employer and responsible market player, and it supports its employees and society. The Bell Food Group primarily Animal/plant wants to achieve these objectives through 1 raw materials its engagement in vocational training, em- ployment conditions and personnel devel- Products and opment. procurement Operating materials Outlook Since the entry into force of the most recent Packaging version of the sustainability strategy in 2017, the Bell Food Group has seen huge organisa- tional change resulting from, among other things, acquisitions, sales and the restructur- We stand for ing of business areas. The sustainability strat- sustainable egy therefore needs to be revised. The objec- services tives also have to be adjusted to new scientific findings. The revision of the sustainability Employees strategy will start in 2021. 2 Environment Environment 3 Employees Social and resources Resource and society engagement utilisation 8 Wir stehen für 1 2 3
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI GRI Standard Sustainability organisation Board of Directors every year. The report cov- ers both the key indicators and a qualitative G RI 102-43 The Board of Directors is the supreme decision- description of the status of objective achieve- making body. It adopts the sustainability strat- ment. egy. Together with the business area and divi- sion management teams, the Group Executive Monitoring across all areas is part of the inter- Board is responsible for its operational imple- nal sustainability management system, which mentation. applies to all companies of the Bell Food Group. Monitoring makes it possible to identify Sustainability organisation The Sustainability Competence Centre plays a the areas where further measures to ensure of the Bell Food Group functional and advisory role. It is responsible successful objective achievement are needed. for superordinate topics such as the organisa- tional structure, development and execution During the planned review of the sustainabil- of key indicator monitoring, and the relation- ity strategy, the monitoring system will also ship with the sustainability department of have to be adjusted to the new objectives. Board of Directors Data capture processes and systems will be Coop, the principal shareholder of the Bell Food Group. The Sustainability Competence reassessed and optimised where necessary. Centre integrates new companies into the ex- CEO, Bell Food Group isting sustainability organisation, step by step Group Executive Board, and to the extent required. Sustainability communication Bell Food Group Communication is an integral component of Head of Sustainability Sustainability officers the sustainability strategy. Sustainability as a Competence Centre topic is systematically approached on different A sustainability officer has been appointed for levels in line with the three pillars and inte- every business area and every division (see grated as a key component into the internal Head of Sustainability Team, and external corporate communication pro- diagram to the left). These sustainability offi Bell Switzerland business area cers are responsible for the achievement of cesses. the objectives and the implementation of the Sustainability Officer, Bell West- measures. They serve as the central contact Sustainability topics are also communicated ern/Eastern Europe division person for sustainability topics in their indi- internally, including through training courses, vidual organisational areas. Within the areas, intranet platforms, info screens and the inter- Sustainability Officer, the strategy is implemented by pillar and sub- nal employee magazine LOOK! Bell Germany division ordinate objectives. External stakeholders are primarily kept up to Under the auspices of the Sustainability Com- date via the website, Annual Report, Sustain- Sustainability Officer, petence Centre, all sustainability officers dis- ability Report and articles about sustainability Hilcona division cuss superordinate topics, the monitoring of topics in specialist journals. We also reply to objectives and strategic questions at least specific enquiries addressed to us. Sustainability Officer, twice a year. A smaller core team of sustaina- Eisberg division bility officers also exchanges experiences and We want to expand the regular dialogue with formulates topics of current relevance to the crucial stakeholders in all our markets in order Group several times a year. to identify the needs of the stakeholders and Sustainability Officer, promote our sustainability engagement. The Hubers division value added to our products through our sus- Sustainability monitoring / tainability projects is integrated into our brand Sustainability Officer, sustainability reporting communication. Hügli division Sustainability monitoring has a centralised This first Sustainability Report is the first at- structure and is subject to continuous develop- tempt at standardising our reporting practice, ment. Progress is monitored on an ongoing which is based on the standards of the Global basis. A report summarising the achievement Reporting Initiative (GRI) in terms of structure of objectives and providing a critical review of and contents. performance and progress is submitted to the 9
Sustainability Report of the Bell Food Group 2019 Material topics GRI Standard The Bell Food Group structured the important This led to the identification of the following topics included in this first edition of the Sus- ten material focal topics for the Bell Food G RI 102-46, 102-47 tainability Report in accordance with the Group’s sustainability engagement: standards of the Global Reporting Initiative (GRI). It is based, among others, on the com- Products and procurement prehensive stakeholder analysis carried out Environmental aspects in procurement during the review of the sustainability strategy Social aspects in procurement in 2016. Stakeholder expectations with regard Animal welfare to sustainability had a material impact on the development of the Bell Food Group’s strategy Environment and resources and the definition of its strategic focal topics. Food waste and resource efficiency Climate Following on from the stakeholder analysis, Water our own focal topics and the strategic direc- tions defined by the sustainability strategy, the Employees and society first step was to draw up a list of potential top- Employment conditions ics collated from various sources. As part of Occupational health and safety this process, we analysed the focal topics of Food safety selected environmental protection and animal Responsible company welfare organisations and the sustainability and market player strategies of our competitors, taking account of a variety of ratings and rankings. These ten focal topics are discussed in the chapters “Products and procurement”, “Envi- The potential topics were categorised accord- ronment and resources” and “Employees and ing to superordinate chapters. Stakeholder society” of this sustainability report. They relevance as well as impact scores were meas- aim to provide an overview of the strategic ured. The basis was provided by impact stud- topics on which the Bell Food Group is cur- ies, an internal self-assessment of the Bell rently focusing in these areas of sustainability. Food Group, and an evaluation by an external consulting company for sustainability man- The two focal topics “Environmental aspects in agement. procurement” and “Social aspects in procure- ment” are discussed in the chapters “Sustain- able procurement of plant raw materials” and “Sustainable procurement of animal raw ma- terials and animal welfare”. Owing to an over- lap at the thematic level as well as with regard to the management system approach, the chapter “Sustainable procurement of animal raw materials and animal welfare” includes a discussion on the crucial topic of animal welfare. 10
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI Our stakeholders GRI Standard The long-term success of the Bell Food Group is Through its Consumer Service, the Bell Food dependent on securing the approval of all stake- Group also receives direct feedback from con- G RI 102-40, GRI 102-42, holder groups, not only with regard to internal sumers, which provides insight into consum- GRI 102-43, GRI 102-44 or direct stakeholders such as employees or ers’ needs. The same is true for the feedback suppliers and partners, but also with regard to we get from our direct customers and their indirect stakeholders such as social interest consumers. groups. We recognise the different require- ments, needs and expectations of these groups. To support these findings, discussions in the media and public opinion about sustainability topics are monitored and analysed in regular Identification of our stakeholders exchanges with various panels. Our stakeholder list An in-depth stakeholder analysis was carried As stakeholders can differ greatly from country Social interest groups out in the context of the sustainability strategy to country, the local employees in charge are Competitors review in 2016. We identified stakeholders with best qualified to judge their relevance. As a Local communities (residents and a significant relationship with the Bell Food result, the integration of external stakeholders neighbours) Group. These are primarily stakeholders who and partners as well as memberships are Consumer protection organisations have a great interest in our company or who partly organised and managed decentrally by and consumer associations have a serious influence on our company. the different business areas and locations. Non-governmental organisations Their expectations are particularly important to (environmental and animal the Bell Food Group and have therefore sig- Examples include Farmers’ Union, amfori Net- protection) nificantly influenced the further development work Switzerland, Working Group Poultry, Ger- Media of the sustainability strategy. man Animal Welfare Association, regional and Partners national organisations such as the Federation Trade unions Unfortunately, it is not always possible for the of German Food and Drink Industries or the Associations and industry Bell Food Group to avoid and solve conflicts Swiss Private Sector Energy Agency (EnAW), organisations concerning objectives arising from the differ- trade unions and industry associations such as Suppliers, traders (raw materials), ing needs of our stakeholders. By promoting Proviande, Central Association of the German (contracted) producers and farmers exchange between the different stakeholder Poultry Industry, Swiss Poultry Producers B2B customers (retail, wholesale, groups, the Bell Food Group wants to find (SPG), Fédération Française des Industriels system catering, industry) common solutions and strengthen mutual un- Charcutiers, Traiteurs, Transformation de Vian- Universities and institutions derstanding. In this way, the Bell Food Group des, Swiss Convenience Food Association can accumulate topics and know-how that will (SCFA) and Swiss Animal Protection (STS). Internal stakeholders help the company to continuously evolve and Employees and staff councils improve. A regular exchange among sustainability offi cers ensures that information is collated cen- Political decision makers trally. More information about the concerns Public authorities Legislators Engagement of our stakeholders represented by the stakeholder groups of the and partners Bell Food Group is provided in separate topic Investors chapters. Shareholders Regular meetings with selected stakeholders aim to identify their requirements and expec- tations and to jointly define general frame- work conditions. This exchange is structured in a variety of ways and is not always managed centrally. One example is the periodic employee surveys carried out by the HR department. Employees can also discuss their questions and problems with their line managers at any time. The Bell Food Group maintains close personal contact with selected stakeholders such as contracted producers within integrated poul- try and vegetable production. 11
Sustainability Report of the Bell Food Group 2019 Pillar 1 Products and procurement The Bell Food Group expects the methods of manufacture of its plant and animal raw materials to meet certain stan dards. The focus falls in particular on production methods and animal welfare. As the Bell Food Group wants to make a positive contribution to sustainable agriculture, the products have to meet minimum social and environmental standards as well as offer added value in social and environ- mental terms. The Bell Food Group is constantly working on enlarging its range of label products and products with social or environ mental value added. 92 % of all plant raw Some 10 % of the fruit and materials came from vegetables procured in 2019 Europe in 2019. carried a sustainability label. 50 % of own slaughtering in 98 % of all animal raw 2019 carried animal welfare materials came from labels (incl. organic). Europe in 2019. 8 % of poultry from own 97 % of fish and seafood slaughtering was certified came from sustainable organic in 2019. sources in 2019. 12
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI What does sustainability mean to you as Looking ahead, what will be the challenges Head of the Bell International business area facing the Bell Food Group, and in particular of the Bell Food Group? the Bell International business area, with re gard to the sustainable procurement of ani In the countries and markets outside Switzer- mal and plant raw materials or sustainability land we work to ensure sustainability in compli- in general in the upstream supply chain in the ance with the adopted strategy. For example, coming years? we promote sustainable poultry production and are currently one of the biggest producers of Alternative sources of protein will become organic poultry in Europe. We’re working on increasingly important. This is why we’re in- optimising our packaging materials and re volved in researching and developing cultured ducing our consumption of energy and water beef (meat grown from animal cells in a labora- in production, and we are also implementing a tory) through the company MosaMeat. It’s number of other measures. crucial to us to secure sustainably produced sources of raw materials so as to avoid falling into a relationship of dependency. Globalisa- Does sustainability also play a role in your tion is furthering international competi- private life? What do you personally do to tion. Thanks to our presence in 15 countries, make your everyday life more environmen we can quickly recognise trends and transfer tally compatible? the acquired know-how to other markets. It’s also our ambition to set new trends ourselves, When buying food I take care to select prod- to get things moving and to be perceived as a ucts from species-appropriate animal hus- sustainable company. bandry. I also avoid imported products that had to be transported a long way, such as beef from overseas. We are currently one of the biggest producers of organic poultry in Europe. Marco Tschanz Head of Bell International business area 13
Sustainability Report of the Bell Food Group 2019 Sustainable procurement of vegetable products GRI Standard Relevance Product labels The sustainability strategy that entered into G RI 103-1, GRI 103-2, GRI 103-3, For the convenience business in particular, the force in 2017 defines the requirements (stan GRI FP2 Bell Food Group requires large volumes of dards and labels) that suppliers of raw materials plant raw materials such as fruit and vegeta- to the Bell Food Group have to meet. bles, palm oil and rice. Depending on produc- tion methods and locations, the growing of As the Bell Food Group is convinced that these raw materials can have unintended envi- commitment to labels such as Bio Suisse, EU ronmental and social consequences, such as Organic and Fairtrade pays off, it aims to con- the large amounts of water and land required stantly expand its range of label products. The for agriculture, the use of plant protection Bell Food Group therefore relies on organi- products and fertilisers, and sometimes prob- cally manufactured products that meet the lematic working conditions. At the same time, Bio Suisse guidelines or the EU’s organic the Bell Food Group is a rather small player in regulations. For example, both of these guide- global terms and can be potentially affected by lines prohibit the use of chemical and syn- fluctuations in supply on the global markets, thetic plant protection products, which has a for example as a result of climate events. positive effect on soil diversity, among other things. There are also standards for raw mate- rials that are not always reflected in the end Management approach product but which the Bell Food Group be- lieves is necessary, such as GlobalGAP and Plant raw materials in compliance SwissGAP (Good Agricultural Practice) or the with social and environmental criteria Roundtable on Sustainable Palm Oil (RSPO). As the Bell Food Group wants to make a posi- tive contribution to sustainable agriculture, Objectives “Organic farming is the products of the Bell Food Group have to The Bell Food Group pursues the strategic ob- made sustainable by meet minimum environmental and social jective of expanding its range with products standards that go further than local statutory that offer added value in the area of sustain- refusing to use syn- provisions. As a comparatively small market ability, for example by way of certification. This thetic pesticides and player, the Bell Food Group is challenged to convince suppliers on the global market to also meets a growing need of consumers. In addition to increasing the percentage of label chemical fertilisers meet these standards. The company therefore products, the Bell Food Group’s procurement relies on industry standards developed and de- standards require that 100 % of certain clearly and following the rules manded by many market players. However, defined raw materials have to demonstrably of crop rotation.” such additional performance is often reflected meet specific minimum standards (see ad- in a higher price. This applies in particular to jacent “Key indicators and proof of perfor- Georg Frick the processed raw materials needed for the mance”). Regional suppliers are preferred Vegetable supplier and contracted producer for Hilcona, Schaan convenience segment, such as spices and whenever possible. marinades. Such products are often supplied to the market by only a few suppliers, and the Bell Food Group represents only a small share of their business. The exception to this is the contracted pro ducers involved in the Bell Food Group’s inte- grated production, where such requirements can be implemented more easily and more rapidly. 14
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI Measures Evaluation On the road to a sustainable production and To measure objective achievement on a con- supply chain for plant raw materials, the Eis- tinuous basis, the status of implementation is berg division started two new projects in 2019: assessed every year. To this end, the share of 84 % the Biodiversity project and the Zero Residue Production (ZRP) project. Eisberg’s flagship ZRP project should help to the defined labels of total sales revenue and total purchased volume is calculated and the relevant data are analysed. of the fruit and vegetables that improve various environmental problems. Since the annual review of these objectives are procured come from operations Among other things, the objective is to join started, constant improvement has been certified to GlobalGAP/SwissGAP. forces with salad producers to further reduce achieved in all areas (see the “Purchased vol- the use of pesticides in the production of ume for labelled plant raw materials” table, salad. page 39). For example, 100 % organic or 100 RSPO-certified palm oil is used. This transition With the Biodiversity flagship project, Eisberg was a long process. Entire recipes were revised % launched a project group in autumn 2019 to to ensure that no palm oil is needed. Thanks review the applicability of the biodiversity to frequent discussions with suppliers, it has of palm oil is certified to organic points system for IP Suisse label products to also been possible to switch to RSPO-certified or RSPO standards. Swiss vegetable farming. ingredients for composite products. Hügli suc- cessfully replaced palm oil in some products with organic shea butter that is procured at fixed and fair prices from a women’s group focusing on sustainable working. Key indicators and proof of performance Sustainable procurement of vegetable products Outlook Objective/requirement Status 2019 No sales of the defined critical products/production forms (DON’Ts list) 100 % The Bell Food Group is on track for most of its objectives. The implementation of further Increase in sustainability sales according to defined labels, in particular * measures to ensure objective achievement is organic sales (ongoing objective) becoming an ever greater challenge. The more 100 % RSPO-certified palm oil by 2020 100 % advanced the implementation, the more diffi- 100 % of fruit and vegetables comply with GlobalGAP/SwissGAP by 2023 84 % cult the remaining challenges. There is also a need to convince customers more strongly of 100 % GMO-free seeds for fruit/vegetables from own cultivation 100 % (Hilcona/Eisberg) by 2020 the value that is added by products that are produced in an environmentally and socially * See table for “Purchased volume for labelled plant raw materials”, page 39 Objective not on track Objective partially on track compatible manner. The higher costs of pro- Objective on track or duction can only be passed on once customers achieved are more willing to pay for these benefits. Key indicators P urchased volume for labelled plant raw materials, page 39 15
Sustainability Report of the Bell Food Group 2019 Sustainable procurement of animal products and animal welfare GRI Standard Relevance To improve the situation, the Bell Food Group works together with various stakeholders G RI 103-1, GRI 103-2, GRI 103-3, Animal raw materials, and in particular meat, along the entire value chain: customers, trade GRI FP2, Bell Food Group indicator are the most important raw materials in terms organisations, farmers, NGOs and government of volume for the Bell Food Group. These are institutions. The Bell Food Group offers prod- primarily used by the Bell Switzerland and Bell ucts from different animal welfare levels and International business areas. Around three- animal welfare programmes. Consumers can quarters of the sales revenue of the Bell Food therefore choose from a broad range of prod- Group comes from the processing of animal ucts and apply the criteria that are important products. The Convenience business area also to them personally. The Bell Food Group ap- uses animal raw materials, but mostly in pro- plies the following levels to the requirements: cessed form rather than as an unprocessed raw material. DON’Ts: A basic list of critical products and production forms was drawn up for Animal welfare is a topic close to the hearts of the entire Bell Food Group. These “DON’Ts” customers, producers, processors and many may not be used anywhere in the com- other stakeholders that often evokes an emo- pany. These products include fish and sea- tional response. Of primary interest here are food from acutely endangered species and husbandry practices, feed, medication (e.g. eggs from battery-caged poultry. the use of antibiotics), and the transport and “Measures to guarantee slaughtering of animals. These topics affect L egal requirements: When creating ani- the entire supply chain of the Bell Food Group. mal products, the manufacturer as a mat- traceability in the Our influence as a slaughtering and process- ter of course has to meet at least the legal complex and nontrans- ing company differs according to the business requirements of the country of origin, area. The Bell Switzerland and Hubers busi- which is audited by way of official control parent supply chain ness areas run their own abattoirs and cutting mechanisms. are central in the halls where they can directly influence the roven minimum standards for raw P welfare of the animals by determining the fight against illegal and type of anaesthetisation and the slaughtering materials: In 2017, environmental and/or unethical fishing.” process. The Bell Food Group operates its own integrated poultry production in Switzerland, social minimum standards for animal raw materials were defined, and compliance Catherine Vogler Austria and Germany. Topics such as hus- with these standards must be proved by a Senior Manager Seafood Markets, WWF Switzerland bandry practices, feed, medication and animal label or an independent organisation. transport can be managed more directly here. Compliance with these standards is com- pulsory for suppliers of raw materials. Eggs, for example, must be certified at Management approach least to KAT, AMA, QS or a comparable standard. This standard is not always re- The Bell Food Group campaigns for the im- flected in the end product. provement of production factors and pro- motes animal welfare. It is one of our strategic Product labels with special added objectives to expand the range of animal prod- value: The highest standards for animals, ucts carrying labels that add value and to help people and the environment can be guar- farmers to comply with animal welfare stan anteed by recognised label products dards. The Bell Food Group also applies proven with special added value that are directly standards to the procurement of animal raw reflected in the end product. For example, materials and complies with the ban on critical we offer products with the following products and production processes. labels: EU Organic, Bio Suisse, MSC, ASC, Naturafarm and PAS poultry. Compliance with requirements is monitored by the label organisation. 16
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI With regard to animal welfare, we attach par- Measures ticular importance to husbandry conditions and, for our abattoirs, the conditions of trans- The Bell Food Group is involved in a number port and slaughtering of the animals. of projects to promote higher animal welfare standards along the entire value chain. To- Transport gether with its partners, strategies are devel- It is particularly important that animals are oped for improved animal welfare and product “I would like to see handled professionally when being loaded and transported so as to cause the animals ranges that are tailored to the needs of mar- kets and trading companies. The employees of greater appreciation finding themselves in an unknown environ- the Bell Food Group support projects with ment as little stress as possible. This includes by consumers of high- handling the animals more soothingly and their know-how, help with their development, and promote sales of private and government quality and regional ensuring a safe transport environment and labels such as Original Simmentaler and Nat- transport times that do not subject the ani- ura Beef in Switzerland and Bio in Austria. products.” mals to undue stress. Martin Wiesinger Fish and seafood from sustainable sources Contracted producer of organic poultry for Hubers Transport is handled by specialised external The objective is to only sell fish and seafood livestock trading companies as well as by from stocks that are not overfished or not our internal logistics departments. Audits are caught in a way that endangers their eco carried out by government or private organi- system. To achieve this objective, the Bell sations, depending on the label. Transporta- Food Group works closely with WWF Switzer- tion is at all times handled by qualified profes- land. The product range is reviewed and sionals who, depending on the country, have assessed every year. In the context of this to meet different conditions and prove their collaboration, the percentage of products from expertise by way of training courses. sustainable sources was increased to 97 %. Slaughtering Promotion of a dual-purpose breed The areas where animals are unloaded and With its commitment to the Original Simmen- kept waiting have been designed to ensure taler association, which was founded in Sep- that the animals remain calm and suffer as lit- tember 2018, Bell Switzerland is making an tle stress as possible in this unknown environ- important contribution to the preservation and ment. Abattoir staff are trained and regularly promotion of the traditional Swiss Simmentaler attend advanced courses on how to handle cattle breed. As a traditional dual-purpose the animals correctly. When the animals are breed offering good meat and milk, Simmen- 63 unloaded, an independent veterinarian (a taler cattle are ideally suited to Switzerland’s government veterinarian) also inspects the grassland-based agriculture and therefore also live animals. meet Bell’s sustainability criteria. The Original % Simmentaler quality seal identifies premium All animals have to be sufficiently anaesthetised milk and meat products from Simmental Fleck- of own slaughtering carried animal before being killed. This is not only a legal re- vieh cattle. welfare labels (incl. organic) quirement, but also a top priority for the Bell Food Group. The specialist staff use state-of- No slaughtering of pregnant cows the-art anaesthetising techniques and meth- Bell Switzerland is actively involved in the ods that meet the highest practical standards Swiss industry initiative to “stop the slaughter- and ensure the quality and success of the ing of pregnant cows”. Missing or unverified anaesthetisation process. pregnancy diagnoses, uncontrolled natural mating and intermediate trading without giv- Government veterinarians make sure that the ing the new owner sufficient information are abattoirs of the Bell Food Group meet the legal some of the reasons why pregnant animals are requirements regarding animal welfare and slaughtered. This unfortunately still happens health as well as the food safety standards. In too often, which is something the Bell Food addition to government audits, the abattoirs in Group cannot accept in terms of ethics and Switzerland, Austria and Germany also have animal welfare. Bell Switzerland therefore annual audits performed by independent or- actively works to improve the unsatisfactory ganisations (Swiss Animal Protection STS, bsi situation along the entire value chain. Schwarzenbeck). 17
Sustainability Report of the Bell Food Group 2019 PASplus poultry house Medication and reduction of antibiotics In summer 2020, a poultry house built accord- For medical reasons and in the interests of ing to Minergie A standard will be commis- animal welfare, sick and injured animals have sioned in Zimmerwald in Switzerland. This fa- to be treated to make sure that they do not cility was built in accordance with the “PASplus” suffer. As such, the objective is not to stop us- concept developed by Bell Switzerland, which ing medication such as antibiotics, but to use is the advanced form of the “Particularly medication carefully in accordance with a vet- animal-friendly stabling systems” programme erinarian’s prescription when no other treat- implemented in Switzerland. ment is possible. The facility will in future operate without gen- Prophylactic antibiotics have been banned in erating any CO2 by producing its own energy, the EU and Switzerland for many years. There “Bell Switzerland is causing less dust and smell emissions, and of- are a number of programmes designed to re- an enormously impor- fering a high standard of animal welfare. The duce the use of antibiotics in animal hus- chickens will benefit from an even more bandry. Bell Switzerland is an active partici- tant proponent of agreeable coop climate. Thanks to the temper- pant in Switzerland’s strategy on antibiotic animal protection in ature-regulated winter garden, they will also resistance (StAR). The unavoidable adminis- be able to go outside for some fresh air tration of antibiotics for medical reasons has Switzerland as it has a throughout the year. to be documented. lot of influence on animal PAS poultry house in Austria None of the tests to monitor antibiotic resi- husbandry on farms as To service the Swiss market, Hubers in Austria dues at the meat-processing plants of the Bell has been developing a poultry production fa- Food Group carried out by government insti- well as on the transport cility according to the Swiss PAS standard tutions and the company itself was positive. and slaughtering of since 2015. The animal-friendly PAS stabling system with higher perches, natural daylight Poultry production health programme the animals.” inside the coop and access to fresh air in the Advisory and health services play an important Cesare Sciarra winter garden has also won over the Austrian role in animal welfare in the Bell Food Group’s Manager of Centre of Expertise for Farm Animals, consumers. Some 40 % of producers have poultry production. They help producers to Swiss Animal Protection (SAP) converted their coops to the PAS model. Hu- develop preventive measures to maintain the bers has also been selling these products animals’ health. During the “Treatment reduc- through Austrian retailers since 2019. tion” project in 2016, the entire production chain of Bell Switzerland was systematically Modernisation of organic hatchery reviewed. Areas with risk potential were identi- To meet the growing demand for organic poul- fied and suitable measures were formulated, try, the Lindenberg organic hatchery enlarged such as 24-hour checks for stable preparation, its production premises and installed state-of- cleaning and disinfection when they are empty. the-art incubators, and heating and ventilation systems to achieve optimal hatching condi- Pork Plus health programmes tions. In Switzerland, Bell has joined forces with partners to apply the Pork Plus health pro- For poultry to be labelled organic, the eggs grammes throughout the value chain. This from which the chicks hatch already have to programme was launched by the Swiss pork meet strict organic standards. The Lindenberg industry in 2016 and offers a possible solution organic hatchery is one of only two plants that for the sustainable use of antibiotics in pork hatch organic eggs in Switzerland. The com- production. pany works closely with Bell in the context of integrated poultry production. Producers participating in the programme un- dertake to keep a journal to document all their health and performance data. The resulting 18
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI key indicators provide the health services with Outlook a basis for formulating advice tailored to the needs of a specific farming operation. Although the status of objective achievement is satisfactory for most objectives, the remain- ing potential should still be exploited. This in- Evaluation cludes the organic range of Bell France launched in 2018 which is marketed under our Objective achievement is continuously meas- own and trade brands, and rising demand by ured. The percentage of certified raw materials Hubers customers for the organic and PAS “We support agricultural of the total purchased volume (see table for ranges of the Bell Food Group. Our leading po- producers with preven- “Purchased volume for labelled animal raw sition in the production of organic meat should materials”, page 39) or the percentage of be expanded further. tive measures to main- slaughtered animals with a defined animal tain the health of their welfare label of the total slaughtering volume (see table for “Own slaughtering with animal Together with the stakeholders, the Bell Food Group is continuing to work on promoting animals and only use welfare labels (incl. organic)”, page 40) is animal welfare at the different levels of the measured. antibiotics when value chain, in particular in the areas where the Bell Food Group has a direct influence and necessary.” Since the annual review of these objectives can exercise full control. started, improvement has been achieved in all Dr Kathrin Kühni Boghenbor areas. The challenge for switching to eggs certi- Bell Switzerland is focusing on the following Veterinarian and Head of Poultry Health Services, Bell Switzerland fied to KAT, AMA, QS, AgroVet or a comparable projects: standard lies mainly in the procurement of com- posite products. Implementation of PASplus poultry house in 2020 Inclusion of all pigs in Pork Plus health programmes from spring 2021 Key indicators and proof of performance Conversion of Coop’s own Naturafarm Sustainable procurement of animal products brand to IP Suisse production for pork 100 % beef from suckler cow herds for Objective/requirement Status 2019 Naturafarm veal from 2021 No sales of the defined critical products/production forms (DON’Ts list) 100 % such as fish and seafood from acutely endangered species (UCN’s Red List Hubers is planning the following special pro- species) jects: Increase in sustainability sales (incl. organic sales) according to defined ** labels (ongoing objective) Implementation of anaesthetisation pro- 100 % of purchased eggs comply with KAT, AMA, QS, AgroVet or a 98 % cedures that improve animal welfare at comparable standard by 2020 the Pfaffstätt site 100 % of fish and seafood for strategic brands procured from 100 % Acquisition of lorries for live animal trans- ecologically compatible and sustainable aquatic cultures and fisheries port with a state-of-the-art lifting and ven- (WWF Score 1–3) by 2023 tilation system for the careful transport of live animals Key indicators and proof of performance Animal welfare Objective/requirement Status 2019 Key indicators Humane slaughtering * *** Purchased volume for labelled animal Reduced use of antibiotics/monitoring of residues *** raw materials, page 39 * Only Bell Switzerland, Hubers Objective not on track ** See table for “Purchased volume for labelled animal raw materials”, page 39 Objective partially on track Own slaughtering with animal welfare *** Status checked via annual documentation of measures/no residues found in meat Objective on track or during own or government tests. achieved labels incl. organic, page 40 19
Sustainability Report of the Bell Food Group 2019 Pillar 2 Environment and resources For the Bell Food Group as a production company, the careful husbanding of resources is key to conserving our resources, saving costs and having the smallest possible impact on our environment. It is therefore the strategy of the Bell Food Group to reduce our energy and water consumption and use our resources more efficiently in order to make a contribution to the preservation of the environment. In the long term, the Bell Food Group aims to procure all the energy for electricity, heating and fuel from renewable sources. The production processes are continuously optimised in order to keep food, energy and water losses as small as possible. In 2019, energy procure- 56 % of of the energy ment was 9 % lower than procured (electricity, in the previous year. heat, fuel) in 2019 came from renewable sources. In 2019, greenhouse gas 86 % of waste was emissions decreased recycled in 2019. by 10 % on the previous year. In 2019, water consumption was 5 % lower than in the previous year. 20
2 Preface 4 Who we are and what we do 6 Sustainability strategy and management 12 Products and procurement 20 Environment and resources 28 Employees and society 38 Key indicators 48 GRI We need packaging solutions that guarantee product safety while at the same time meeting environmental demands. Volker Baltes Head of Convenience division What does sustainability mean to you as Looking ahead, what will be the future chal Head of the Bell Convenience business area lenges facing the Bell Food Group and in of the Bell Food Group? particular the Convenience business area with regard to energy and resource effi Sustainability is a contract between the gen- ciency? erations. Our objective is to operate in a man- ner that ensures that future generations aren’t If energy and resource efficiency had not been impacted negatively and we can pass on our a central topic for all the business areas of the business as well as our planet in a good condi- Bell Food Group for many years, we would no tion to the next generation. longer exist. I think that we’re actually doing more in this regard than what we’re telling the outside world. Does sustainability also play a role in your private life? What do you personally do to In the future we’re sure to see many develop- make your everyday life more environmen ments in the area of packaging, and naturally tally compatible? also plastic. As a Group, we are greatly chal- lenged in this regard. We also need external Of course. I’m a father and see the next gen- alliances and partners to develop clever solu- eration growing up before my eyes. Sustaina- tions that guarantee product protection and bility is therefore an important issue for us, safety while at the same time meeting the not only in environmental terms but also in environmental demands of society. terms of business and ethics. As I travel a lot for work, we frequently ride our bicycles dur- ing our free time and take care to pursue a mostly sustainable lifestyle. 21
Sustainability Report of the Bell Food Group 2019 Climate GRI Standard Relevance This will make it possible to quickly identify deviations in consumption and provide impor- G RI 103-1, GRI 103-2, GRI 103-3, The warming of the Earth caused by the unfet- tant information regarding efficiency potential. GRI 302-1, GRI 302-3, tered output of greenhouse gases (GHG) is GRI 305-1, 305-4 one of the greatest global challenges of the To identify where energy can be saved and ef- twenty-first century. Climate change has a ficiency enhanced, the Bell Food Group relies huge impact on food production and thus di- on cooperation with external specialists, with rectly affects the players in the downstream whom it works together to define individual food processing industry. At the same time, measures for the production locations. agriculture and the food processing industry are emitters of greenhouse gases and have to In addition, all production plants in Switzer- do their part to protect the climate. land and in Liechtenstein have agreed indi- vidual energy and CO2 objectives and meas- The Bell Food Group can primarily exercise a ures with the Swiss Private Sector Energy direct influence on GHG emissions through the Agency (EnAW). In this way, these business 511 energy sources used by the production plants areas can reduce their CO2 emissions while and its own transport organisation. Here, the also saving on energy costs. GWh Bell Food Group bears a responsibility to limit the emission of greenhouse gases: by moving The contracted producers within integrated In 2019, energy procurement dropped away from fossil fuels to renewable energy car- poultry production in Switzerland have in- year-on-year by 9 % to 511 GWh. riers and increasing our energy efficiency. stalled photovoltaic plants on their roofs to generate their own electricity. For reasons of product quality and food safety – for example in cooling and cleaning – the Bell The following general objectives apply in the Food Group is bound to certain restrictions fields of heating and electricity: 70,661 t when it comes to reducing the use of energy. The Bell Food Group uses projects to achieve Reduction of energy consumption (heat and electricity) in all plants CO2 equivalents improvements in the upstream supply chain, of the Bell Food Group in particular the farmers. For example, it sup- Reduction of fossil fuels In 2019, greenhouse gas emissions ports its suppliers with the development of the Increase in sustainable energy carriers were reduced by 10 % on the previous PASplus poultry house (see page 18) and the year to 70,661 tonnes of CO2 equivalents. reduction of GHG emissions. Measures Management approach In 2019, 100 % of the electricity used by the Bell Food Group in Switzerland and Liechten- The Bell Food Group applies internal energy stein came from renewable sources (including management in all production facilities. This the purchase of electricity certificates for hy- not only gives us a constant overview of con- dropower), and 79 % for the Bell Food Group sumption, but also makes it easier to identify as a whole. The Bell Food Group produces re- the potential for savings. The Bell production newable energy at Eisberg’s headquarters in facilities in Germany are certified to the ISO Dällikon, at Hügli’s Radolfzell facility, at Sylvain 50001 energy management standard. & Co’s plant in Essert-sous-Champvent, and at Bell Switzerland’s facility in Basel. At all locations, energy consumption is meas- ured and broken down into direct (Scope 1) For heating, we favour connection to district and indirect (Scope 2) emissions. heating grids, which is the case at the head- quarters in Basel and at Hilcona’s locations in All plants of the Bell Food Group will have an Schaan and in Landquart. The efficient use of automated energy capture system by 2024. waste and process heat in the production plants plays an ever more important role. Heat recovery systems are already in use at a num- ber of locations. 22
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