RYNKEBY FOODSCSR REPORT 2015
Rynkeby Foods A/S is wholly owned 100% by Arla Foods. ManagementExecutive ManagementJørgen Dirksen
Supply ChainLars Petersen
Sales/Marketing Mark Hemmingsen
FinanceJan E. Pedersen
ProcurementCarsten Pedersen
Board of DirectorsBoard members elected by shareholders:
Povl Krogsgaard, Arla Foods Vice CEO
Peter Giørts-Carlsen, Arla Foods, Vice President
Tomas Pietrangeli, Arla Foods Vice CEO
Kent Skovsager, Arla Foods, Vice President
Johan Karlström, Arla Foods, Vice President
Employee Representatives on the Board of Directors
Leslie Lundehøj Jørgensen, Product developer
Karsten Hansen, IT Support
Responsible for this reportQuality and CSR Manager Rikke Bekker Henriksen
CONTENTS
Introduction .................................................... page 3About Rynkeby ............................................... page 4UN Global Compact ....................................... page 5
THEME 1: BUSINESSResponsible and evolving management ........ page 6Mission, vision and strategy 2020 .................. page 8Safer products - and safer production .......... page 10Accountable procurement ............................. page 12Fair speak ...................................................... page 16Development and focus on consumer health ... page 17Girl’s Day in Science ....................................... page 18World’s best news .......................................... page 19
THEME 2: PEOPLEEmployees are the most important resource ... page 20 The children’s own juice ................................ page 24Record year for Team Rynkeby ...................... page 25
THEME 3: HEALTHHealthy working place ................................... page 26
THEME 4: ENVIRONMENTReduction of environmental impact .............. page 32Energy consumption ...................................... page 36Overview of CSR targets ................................ page 38
CSR-rapport 2015Side 2
INTR
OD
UCT
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WE LIVE RESPONSIBILITYFOR EACH OTHER ANDFOR OUR ENVIRONMENT
This report will review Rynkeby’s CSR status of activities in 2015based on the common commitment, which is reflected in our CSRpolicy.
It is important for us that Rynkeby Foods this year again endorsesthe ten principles of the UN Global Compact for the areas humanand labor rights, environment and corruption.
In this annual report, we describe our actions in order to integratethe Global Compact principles to our business system,strategy,culture and daily work. It is crucial for us to openly and honestlycommunicate with employees, customers, consumers andcooperation partners.
With Team Rynkeby we have the world’s largest bicycle charityevent that promotes public health while supporting a good cause in5 countries. In addition to many school children’s physical activitiesin the Team Rynkeby School Race, over 50% of our employeesparticipated in this year’s event.
In 2015, the responsibility of suppliers were in focus, and we putpeople first. Responsibility has also been the foundation for an evengreater health focus among our employees. This has resulted in anincrease in employee motivation and job satisfaction.
January 2016
Jørgen DirksenCEO
CSR report 2015Page 3
ABOUT RYNKEBY FOODS A/S Accounts 2015:Market leader in the Nordic markets
Rynkeby Foods is with the God Morgon, Rynkeby andInnocent brands the market leader in Denmark,Sweden and Finland and is also well represented inNorway. Outside of Danish borders the route to endcustomers is through our sister companies in the ArlaFoods group.The strategy is to develop/ increase these brandpositions in the Nordic countries over the coming years,and actions have been initiated in order to support thisambition.Competitively, the focus is on increasing the brandvalues through marketing investments in markets,increased focus on product innovation, whilst alsofocusing on continued streamlining throughout thevalue chain.Additionally there will be increased efforts as regardsthe further expansion of the company’s value basis,especially the ”winning culture” (see more about thisfurther on in this report).
Rynkeby Foods A / S - Development
CSR report 2015Page 4
CSR
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We must comply with the UN conventions and principles that , among other things, have been defined in UN Global Compact. This means that we will conduct our work in accordance with sustaina-ble principles and seek resolutions that take into account human and environmental circumstances. We are especially committed to considering issues that concern the local community surrounding our business and the high-risk countries with which we cooperate.
Rynkeby goes even further with regard to social responsibility. We are involved with a number of voluntary activities that help improve a number of social and environmental areas. Small steps are better than none and we believe that if everyone lends a helping hand we will be better equipped to
solve some of the issues we face, nationally and internationally.
We have employee policies that ensure, among other things, that all our employees are given ap-praisal interviews and the older workforce are also offered ”senior meetings” in order to plan for the final years of their working life. We want to be di-verse and reflect the society around us in respect of age, race,sex, religion and nationality.
We will not make promises that we cannot keep and CSR will not just be a showcase of all the good things we do. It will also be factual tool used to identify vulnerable areas that we can help develop and improve
RYNKEBY FOODS A/S – DEVELOPMENT
Primary axis: Net turnoverSecondary axis: Net result before tax and number of employees
Net turnover Result before tax Number of employees
Bel
øb i
mill
. DK
K
2010 2011 2012 2013 2014 2015
1200
1100
1000
900
800
700
600
500
275250225200175150125100
755025
0
CSR report 2015 Page 5
UN GLOBAL COMPACT
The company should: Rynkeby’s framework
Humanrights
1. Support and respect the protection ofinternationally declared human rights and
The BusinessCSR policyResponsible procurementSupplier policyPeople
2. Ensure that it does not contribute to theviolation of human rights.
Labour rights 3. Uphold freedom of association and effectivelyrecognise the right to collective bargaining.
The BusinessCSR policyPeopleWorking environment policyResponsible procurementSupplier policy
4. Combat all types of forced labour.;
5. Support the effective abolition of child labour and
6. Abolish discrimination in relation to workingand employment conditions
Environment 7. Support a precautionary approach to environmental challenges: The BusinessCSR policyResponsible procurementSupplier policyEnvironmental policy
8. Take the initiative to promote greater environmentalresponsibility and
9. Encourage the development and prevalence of environmentallyfriendly technologies.
Anti-corruption
10. Counteract all types of corruption, including extortion andbribery.
The BusinessCSR policySupplier policyResponsible procurementPeople
Since January 2011 Rynkeby Foods has been committed to the UN Global Compact’s 10 principles to promote ethical business practice. We are also a member of the Global Compact’s Nordic network, a Nordic forum for discussion about the implementa-tion of Global Compact.
The UN Global Compact is based on in-ternational conventions within the areas of human rights, labour, environmental protection and anti-corruption.
The UN Global Compact has two purposes, to encourage companies to support and im-plement the 10 principles in their practice and to encourage companies to contribute voluntary initiatives to promote the UN’s sustainability objectives.
The 10 principles are well anchored in Rynkeby’s CSR programme for business, the environment, people and health, as demonstrated below.
1. Theme: THE BUSINESS
Responsible and evolvingmanagementIn Rynkeby our greatest asset is our talented staff and our future growth will primarily be driven through the con-tinued development of the employees we have today.This is the fundamental attitude of the management, and not just something we say to appear as an attractive workplace.
In 2015 we started a talent development program in Rynkeby. We have appoin-ted a group of talents, who will receive special development / training and at the same time have increased top manage-ment attention. The aim is to increase the value of each employee, but also to create an internal recruitment pool across countries and functions for more senior positions, who can also influ-ence the future culture in Rynkeby in a positive way.
Being a company that must constantly improve its performance in a very com-petitive market, we have for many years focused on winning culture as a natural part of the training offered throughout the company. This year several depart-ments have participated in a special team building course. It took place in a forest along with former elite soldiers. And with a clear purpose to develop and move the boundaries both for the indivi-dual and for the whole group. The setup was as an Olympiad, where we cross the company have competed and trained our
winning culture in the same way as we do everyday between teams in the same department, whether it is production or sales teams.¨
We train and compete against each other to develop, but we win together as a company.
In 2015, we conducted a historical great team building exercise in Rynkeby when more than half of the employees trained and developed to get in shape to cycle from Ringe to Paris on Team Rynkeby in order to help raise money for children with cancer. This, in addition to increa-sing the feeling of solidarity also meant personal development and has for some been the start of a better and healthier life.
Management in Rynkeby is about making a difference - both for the individual employee and the company. In Rynkeby we go to work to win, and we are very conscious of our responsibility as a lea-ding juice producer in Scandinavia.
- We aim to make the Nordic region he-althier by constantly developing fresher and healthier products.
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RYNKEBY WINNING CULTUREInternally this mean sthtat Rynkeby...
Has employee who take responsibi-lity for the company’s success
Is a team comprising the best employees, who inspire one another
Is in constant development
Works determinedly and is ”best in class”
Is ambitious and realistic in its objectives
Draws attention to and recognises its successes
Which means that through own actions managers must...
Be a role model and bearer of cultural values
Convert Rynkeby’s strategy to milestones and actions
Consistently monitor targets and craw attention to/celebate results
Make decisions at the correct time
Delegrate and ensure that responsibility is taken
Ensure that employees develop
Ensure the next generation of managers
Ensure employees are motivated and involved in work
Promote cross-organisational cooperation
Management terms:
Role model/inspiringResult-oriented/ambitiousDevelopingInvolving
Welfare terms:
Competitiveness/commitmentEnterprisingBearer of cultural valuesResponsibility & pride
Image terms:
We can+We will+We dare!= We will win!
…and that the employee s, throughtheir own actions...
Take ownership of their own respon-sibilities/tasks
Takes the lead, shows initiatives and imagine solutions
Challenges and develops business procedures in the search for ”best in class”
Accept/learns from mistakes
Supports shared targets and decisions
Takes shared responsibility for their own development and motivation
Is a good team player
Has trust and expectations in colleagues doing their job
Is a role model in relation to Rynkeby’s values
Is an ambassador for Rynkeby
In relation to the o utsideworld this means that.
We set the standard in our market
We will always win
We are a responsible company
We generate increased values for our customers and consumers
We create results
We are a preferred partner
We are the strongest brand in our industry
We are proud of our company
We are Team Rynkeby
We train and compete against each other to develop, but we win together as a company.
CSR-rapport 2015Side 7
CSR report 2015Page 8
MISSION: We are accountable for everything we doand secure high quality natural fruit and
vegetable products in
STRATEGY 2016-2020
VISION: We make it easy for everyone to enjoy a glass of natural fruit and vegetable juice
from Rynkeby every single day.
Profitable growththrough strong brands
in the Nordic region
Create brandpreference
3 strong brands
2020 Ambition
Must Win battles
Conquer theNordic region
Strong CSR activities
World champions inthe Nordic region
Enhanceindependence
1 2 3
MISSION, VISION AND STRATEGY IN 2020
CSR-rapport 2015
Side 9
pier and healthier employees have fewer sick days and are easier to retain - and this can be measured on the bottom line.
Seen from a researcher point of view the CSR approach in Rynkeby is actu-ally quite unique. Whereas most of the important Danish CSR-oriented compa-nies typically have focused their CSR in corporate branding and communications departments, Rynkeby bases CSR on their most important resource - the employees. This integration strategy is actually really well thought out. It’s no doubt much easier to attract competent employees to large CSR businesses in Copenhagen such as Novo Nordisk than getting them to a medium-sized company in a small South Funen city like Ringe. Here a strong CSR anchoring with the employees helps to make a dif-ference - not only in recruitment but also retention and development.
Where should Ryn-keby’s CSR journey so take them now? The next step would typically be an even greater
Annabeth Aagaard (PhD, MSc.) is an associate professor at Aarhus University at the Institute of Business Development and Technology, where she is a resear-cher and lecturer in strategic manage-ment, sustainability, innovation and busi-ness development. In her research and publications within CSR she encountered Rynkeby as case company. A ’meeting’ which she tells about below.
Rynkeby is a very interesting example ofCSR in practice. Many of the known CSRplayers in the Danish market are typi-cally large, global organisations with separate CSR departments and their own CSR budget. Rynkeby, on the other hand, is a small player in the global market, but with its 200 employees it will actually be regarded as a medium-sized company in DK. Despite this Rynkeby’s CSR brand is strong in the Nordic region among other things due to Team Ryn-keby, and their major focus and dona-tions for children with cancer. With this kind of attention it is compelling that the company will act responsibly - and not just on isolated events, but as a company that is part of a whole ecosystem of stakeholders.
Seen with professional eyes Rynkeby has reached far on the CSR agenda. In particular when taking into account the rather limited CSR budget and the few employee resources allocated at the beginning of their CSR journey compa-red to the extent of the CSR activities, Rynkeby has completed as part of their CSR strategy. These activities relate to activities with regard to a more sustaina-ble supply chain, sustainable packaging, reducing energy and water consumption and sewage discharge, responsible marketing and an extensive staff welfare & health employee program to name just a few. The latter has had an interesting ’bonus’ and bottom line impact as hap-
anchoring of CSR throughout the supply chain and with subcontrac-tors. An evaluation of CSR’s impact on bottom-line, business and market development could also help to ensure an optimal match between the CSR activities, that are launched, and the strategic business development the company wants. But no matter what it will be interesting to follow whereto Rynkeby ’cycles’ next...
CSR DRIVEN THROUGHEMPLOYEES
Annabeth Aagaard research and lecture instrategic management, sustainability,innovation and business development
As a responsible manufacturer it is our main task to ensure that our products are safe to consume.We have done that for many years through good manage-ment of raw materials supply, hygi-ene, production and finished goods in compliance with our ISO 22000 certified management system.
However, because of customer demands we have in 2015 decided to upgrade the certification to FSSC 22000, which is a GSFI (Global Food Safety Initiative) recognized standard.
The stricter requirements of this stan-dard meant that the company must be secured against terrorism, for example pollution of our products or arson. To meet the new requirements access control has been introduced to the entire production site and administration. Out-siders can NOT get access to either raw materials, production, storage or other buildings without permission. It has been a big task to complete, and include the installation of new access-controlled gates and doors.
The certification was conducted over two days in November, and led to a satisfac-tory result with only one minor deviation.
Complaints and recallDespite the good management of the entire supply chain and the processes as well as controls of our raw materials and products, before, during and after pro-duction, we still receive inquiries from consumers who are not satisfied with our products for various reasons.
In 2015 we had a single major case of withdrawal of Rynkeby Naturig Cran-berry due to mold in the products. We subsequently evaluated the withdrawal process and established that the proce-dures worked satisfactorily.
The table below also shows that there are big differences in consumer behavior in the Nordic countries. Sales (in terms of number of liters) are in Denmark twice as high as in Sweden. Neverthe-less, we have received almost twice as many complaints from customers in Sweden compared to the Danish custo-mers.
The key figure for consumer complaints from the Danish market increased in 2015. The increase was primarily due to the cranberry case and 2 cases with browning of products due to leaking
package. These cases represent almosta quarter of all complaints in Denmark in 2015.
Consumer complaints on our 2 other major markets, Sweden and Finland, have also increased.
In Sweden and Finland we sell, contrary to Denmark, primarily juice with pulp. The majority of the Swedish and Finnish complaints relates to too much pulp in the products. Rynkeby has already im-plemented several measures to optimize the distribution of the pulp, but we conti-nue to work on the issue. In addition, we had a number of inquiries on products where the cardboard bulges. The custo-mers think that it is due to fermentation of the product, but this is not the case. It is the cardboard that is too unstable. We are working to find the cause and opportunities for improvement.
None of the received consumer com-plaints constituted a risk to food safety, which is our primary objective about complaints.
SAFER PRODUCTS – AND SAFER PRODUCTION
COMPLAINTS
Denmark
Sweden
Finland
Complaints per 100 mill. ltr.Target
908
89
304
2011
1070
2161
429
2012 2014
227
845
816
2015 2016
319 max. 300
1057 max. 700
1070 max. 700
2013
271
811
667
CSR report 2015Page 10
CSR-rapport 2014Side 11
Dette foto er brugt i 2013 udgaven - kan der skaffes et lignende foto fra produktionen som er nyere, eller må vi bruge dette?
The Quality Department monitors that the qualitytasks are performed satisfactorily.
CSR-rapport 2015Side 11
Accountability in the global commodities industryThe juice industry especially is a global business in which raw materials hail from the entire planet. Demand in the EU has risen to such a high level for certain commodities, that the import percentage will constitute a larger proportion of the need. This is the case for the most traded juice concentrate - orange, but grape fruit concentrate and pineapples are also among the most popular flavours, as are passion fruit, cranberries, mango and guava.Brazil supplies well over 80% of EU need for orange concentrate.Source: www.aijn.org
At Rynkeby Foods we have an extremely high focus on sustainable production, high quality, secure supply and not least on our suppliers complying with our Code of Conduct and that they produce in accordance with the Global Compact principles. With the increasing globali-zation this will be an area that we will constantly focus on to provide assurance and safety to our customers.
Supplier Approval and evaluationWe have a structured process for theauthorization of new suppliers and
conduct ongoing supplier evaluation inorder to ensure responsible suppliermanagement.
Rynkeby’s Code of ConductWe do everything we can to ensure that our raw material suppliers comply with the requirements set out in our Code of Conduct and have obtained the signa-tures of all raw material suppliers in relation to this. The Code of Conduct specifies requirements concerning compliance with applicable legislation and also covers the areas of: Human rights, labor rights, good ethics and no child labor.
SGF / IRMA and Code of ConductSGF (Sure Global Fair) is a German industry organization that certifies fruit farmers and suppliers of raw material in more than 60 countries for authen-ticity and quality of raw materials as well as Code of Conduct (human rights, labor rights and anti-corruption). We do however find that there are generally more raw material suppliers who chose not to become members of the SGF. The slight decrease of 2% points from 2014 to 2015 is due to fact that Rynkeby has introduced several new products with several so-called exotic raw materials of
overseas origin where fewer suppliers are SGF members. Many of the other raw materials, where there is no SGF membership are primarily from sup-pliers with which we have a good and long-standing business relationship, which contributes to the necessary se-curity, just as all our main raw material, orange from Brazil is from SGF certified suppliers.
We uphold our requirements and conti-nue working to ensure that our suppliers are members of SGF-IRMA (Sure Global Fair) but we must acknowledge that as a minor player in the global juice market we are unable to drive this on our own. We have identified alternative certifica-tion schemes and standards that could provide us with equivalent security. For social rights , alternatives could include: RFA, IFOAM, FLO, ISO 26000, FairTrade or National Ministry of Labour. We have at the end of 2015 initiated the map-ping of our supplier’s coverage under another 3rd party certification than SGF in relation to CSR. When we have the result of this investigation, we can set new targets for the strategy period until the year 2020, which thus will be relative to the number of suppliers who are SGF or other third-party certified.
ACCOUNTABLE PROCUREMENT
Target and results 2011 2012 2013 2014 2015 MÅL 2020
SGF suppliers of fruit, berriesand vegetables 69% 71% 63% 65% 63% TBASGF raw materials (fruit,berries and vegetables) 84% 76% 70% 65% 64% TBASuppliers supporting the Code ofConduct 100% 100% 100% 100% 100% 100%
KEY FIGURES
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SUP
PLY
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CY Rynkeby sets out both ethical and quality-related require-ments for suppliers, and we do our best to ensure that the international rights set out in the UN Global Compact and quality and food safety agreements are upheld.
We are very much aware that as a small company in a major market we are unable to solve the social challenges in global society, but with our focus on e.g. human rights and anti-corruption in high-risk countries we contribute to ensuring that the requirements are met.
CSR report 2015Page 13
manufacturers of apple concentrate or NFC - not from concentrate, which we buy from).
They have a 5 days’ work week but so-metimes work on Saturdays for a shorter period of time. In addition to the salary the farmers pay for room and board. If it rains, no apples are harvested. The pickers are free to organize themselves into unions, but typically they do not, and many pickers are returning to the same farmer year after year.
In Italy, an average apple farmer has 1-2 hectares, which typically is a family business. Apple pickers typically work 5-6 weeks of the season. They are free to join a union, but due to the short season they chose against it. Apple pickers get room and board paid by the apply farmers. They work 9 hours a day. The apples are picked in a basket carried by the picker. The basket is emptied into a 400 kg box. When apples are picked up in height, a machine will lift up the pickers.
We believe that the best way to help improve the industry is to use all our efforts on the ground - that is, through visits, where we as above puts CSR into focus - and through relevant organiza-tions such as the European fruit juice association AIJN.
Corporate Social Responsibility – focuson apple raw material from Polandand ItalyIn 2014 we especially gave CSR focus toour most important rawmaterial - orange from Brazil. In 2015, we chose our second most important raw material - apple. We are very concerned about the working conditions in connection with the apple harvest and production. We strive to produce our products in the most sustainable way and we will not tolerate abuse of human rights.
Our ambition is to proactively influence our suppliers and sub-suppliers in order to ensure that they comply with Rynkeby Foods’ Code of Conduct for suppliers. The Code of Conduct regulates ethical, social and environmental responsibili-ties. All our raw material suppliers have signed Rynkeby Foods’ Code of Conduct.
Poland is with approximately 30% mar-ket share for apple production by far the largest producer in the EU, while Italy is the second largest with about 20%. We therefore visited selected manufacturers and farmers - both large and small - in both countries to proactively follow up on CSR conditions -and found no critical issues.
In Poland there are up to 100,000 apple farmers where most of them are very small and a few very large. The average size of one apple farmer is 5-10 hecta-res. The logistics flow is that the farmer delivers his apples at a collection point in the nearest town, which sells the apple to to the apple factories (i.e. the
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Aim for food security,health and nutrition
Be environmentallyresponsible – protectand enhance theenvironment
Ensure economicviability and share value
Respect human rights, create acceptable working conditions and help communities to thrive
Encourage good governanceand accountability
Promote access and transfer of knowledge, skills and technology
Cooperation with AIJN about a CSR platform continues
Rynkeby continues to work with the European juice association AIJN about a CSR platform in order to develop the CSR work throughout the juice indu-stry. The cooperation also involve other stakeholders in the European juice industry, including manufacturers and NGOs.
In 2015, the number of business part-ners has increased significantly - as much as 14 new members representing the entire supply chain and NGOs have endorsed the cooperation. A steering committee has been established and a working group set up to go more in depth with orangeproduction in general, and particularly in Brazil, the world’s leading producer of oranges.
The juice CSR Platform was formed in 2013 as a project supported by the EU. The work was and is still led and facili-tated by the European juice union, AIJN. In 2015, the platform became indepen-dent of EU funds and is now operated through affiliated companies and NGOs.
Rynkeby Foods A / S has participated in the platform since the very beginning.Read more on www.juicecsr.eu
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Both offenses were of a less serious nature and not deliberate actions on our part, and the wordings were corrected immediately during the visit.
Rynke continues the successIn 2014 Rynke was resurrected for TV advertisements and other marketing items. It would be easier and cheaper to use so-called reared Hollywood apes. But we do not believe in the use of live animals in advertisement as they could suffer harm.We have therefore opted to make use of the expensive and most recent 3D technology available - and Rynke is not a live orangutan - but a 3D animation. We have also chosen to sup-port the work of the organization ” Save the Orangutan”, to save the orangutan and its habitats in Borneo.
In 2015, we followed up on this in a new film, where Rynke learns to play the piano while getting a new friend - the Pelican. In the beginning they do not like each other - but they end up being good friends.
The new film is of course also produced with the help of the most recent 3-D technology. The film has been viewed more than 3 million times on YouTube.
FAIR SPEAK
Misleading marketingWe have in 2015 had a few cases, invol-ving deceptive marketing.
In the first case the Finnish authori-ties found that the name ”God Morgon Tropical Mango Passion” was misleading because mango and passion fruit were highlighted in the name, despite contai-ning ”only” respectively. 3% and 2% in the product.
We followed The Swedish Juice Associa-tion’s instructions for the area as they are known and accepted by the autho-rities in both Denmark and Sweden. As the dominant flavors in the product ARE mango and passion fruit, we do not find the name misleading. The content of mango and passion fruit is also indicated in the list of ingredients, as prescribed by law. The Finnish ”case” ended with a slight name change.
In the second case in August we received a control visit from The Danish Veterina-ry and Food Administration. Their focus was on marketing, which is described elsewhere in this report.
The control visit resulted in two remarks, both referring to the marketing of produ-cts on our website, where DVFA esti-mated that the health claim was illegal.
Fair speak – or good and responsible marketing - is one of the basic principles of our way to communicate and advertise our products. We endeavor that our marketing must not be misleading and that product claims are within the law. It is, however, an area that can be hard to follow. One reason is that there may be diffe-rences in how the same law is interpreted from country to country and even within the same authority.
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OrganicOrganic is also a focus area, why we regularly scans the market for organic products and continuously launch new organic products within the Rynkeby as well as the God Morgon series.
VegetablesThe increased consumer focus on health and unnecessary carbohydrates has re-sulted in a priority focus on the develop-ment of tasty products with a high content of vegetables. A complicated process, with major challenges in the sensory qua-lity - respectively color and taste - why a number of exciting new products will not be ready to launch before 2016. We expect that the health trend will continue looking forward. Therefore, we have entered into several long-term collaborations with among others nutritionists from the
Department of Sport and Nutrition at the University of Copenhagen and Agro Tech in Aarhus, on the development of new healthy product types.
Process optimizationAlongside the development of new products and product types we work with the optimization of our existing products and production processes. We do this to achieve an improved sensorial quality, better vitamin conservation and / or energy saving.
By changing some of our pasteurization and bottling processes, we have for some of the aseptic tapped Rynkeby products achieved an improved color and taste quality throughout shelf life. And in the case of orange variants in these series we will now be able to declare significant contents of vitamin C.
DEVELOPMENTAND FOCUS ONCONSUMERHEALTH
In 2015, our development department has increased focus on developing new, ta-stier and healthier alternatives within the product types that Rynkeby produces and supplies. Be it within calorie reduction and organic as well as the introduction of more vegetables in our products.
Reduced calorie alternativesIn 2014, we launched a series of nectar under the name Rynkeby 50 which con-tains 50% less calories than sugar-swe-etened nectars and fruit drinks. Rynkeby 50 is sweetened with sweetener from the Stevia plant. This series has been very successful and was therefore in 2015 expanded with two new exciting flavors: Rynkeby 50 blueberry / pomegranate and Rynkeby 50 Lemonade.
CSR-rapport 2015Side 17
CO
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At Rynkeby we consider a healthy financial situation to be a prerequisite for long-term sustainability. The company cannot exist without earnings. We therefore use marke-ting and communication as tools to generate a preference for our products, in order to strengthen our company and image and thus also create increased sales. We also aim to conduct decent and valuable marketing and communication with our stakeholders. On a day to day basis we refer to this as ”Fair Speak” and the expression correct informa-tion, etc. presented in a valuable and decent manner.
We adapt our marketing, communication and behaviour in general based on an ethical precautionary principle. I permitted by law we also aim to communicate the healthy stories.
We apply Fair Speak to all types of commu-nication with our stakeholders, ensuring that we can always look each other the the eye. Our aim is to have zero cased or injunctions from authorities in respect of misleading information to customers.
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Monday, November 23rd companies across the country invited science centers and technical colleges - about 700 primary and secondary school girls - to the Girl’s Day in Science.
Here they could meet female role models and students, who have chosen a scientific career, and work with exciting scientific tasks.
Rynkeby Foods A / S for the second time stood ready with challenges for the 35 girls from Midtfyns Gymnasium (upper secondary school of Mid-Funen). The event should open the girls’ eyes to the fact that laboratory or engineering education programs provide many exciting job opportunities. We challenged the girls with a taste test, tip 12, mix your own juice and a creative workshop where the girls would come up with ideas for new juice flavors.
According to the international organization OECD, only 2.6 percent of the 15-year-old Danes dream of a future as an engineer, against 6.9 percent in other OECD countries. At the same time only a quarter of new engineering students in Denmark are women. Therefore, it is important to
GIRL’S DAY IN SCIENCE
awaken early women’s interest for an engineering education.
The feedback from the girls and their teachers were very positive, and that they had a really exciting day. We expect to continue to participate in the future.
Jet-NetRynkeby Foods A / S joined Jet-Net in 2015. Jet-Net.dk is a nationwide network for school-business collaboration, formed to awaken, stimulate and retain children and adolescents’ understanding of and interest in natural science and technology. Jet-Net facilitates startup and networking between businesses and schools, but once established it is up to the school and the company to drive the cooperation.
Rynkeby Foods A / S has chosen to participate in this network, as we are a company that is strongly rooted in the local area. It is important that we give the young people at the local high school good insight into the jobs that can be accessed through natural science and technological education. In the future there will be a need for competent engineers to secure the continued development of both products and processes in a company like ours.
CSR report 2015Page 18
””The World’s Best News” (WBN) is a news campaign that communicates progress and positive results in developing countries. The campaign is based on a unique collaboration between the UN, Danida and more than100 Danish development organizations,and has more than 100 business partners.
WBN are working together to tell that development partnerships create results, and that the situation in many developing countries are better than you might think - and that together we can eradicate poverty.
WBN’s goals lean up against the UN plan to eradicate extreme poverty and hunger. The plan has eight specific goals, called 2015 Goals. And the plan works! Every year there are new challenges and progress, but it goes in the right direction.
Rynkeby Foods A / S would like to help spreading the good news. Our marketing can be the voice for WBN - and the increased awareness creates greater interest and earnings for the aid organizations - which is the whole purpose of the campaign!
WBN’s messages are consistent with our business as we receive raw materials from countries that have problems to be tackled. We want to show that we are supportive of a better world for children and adults. We have in 2015 done this by communicating the World’s Best News on our website, on Facebook and in our staff magazine ”Frugtpressen”. Moreover, we used for a period of time the WBN rosette in our mail signature.
RYNKEBY FOODS A/S SPREADS ”THE WORLD’S BEST NEWS”
CSR report 2015Page 19
2015 GOALS1: Halve poverty & hunger
2: Achieve universal primary education3: Promote gender equality
and empower women4: Reduce child mortality by 2/3
5: Improve maternal health6:Combat HIV/AIDS, malaria
and other diseases7:Ensure environmental
sustainability8: Global partnerships
2. Theme: PEOPLE
Satisfactory employee turnoverThe company wants to retain a good and stable employee group with appropriate turnover to continuously bring in new inspiration and expertise to the company. An employee turnover of 12% has previously been assessed as fulfilling the wish. In this context employee turnover is measured as the number of resignations in relation to the number of employees. In 2014 the employee turnover was 14%, while in 2015 it fell to 12%. In particular in logistics / distribution and among salaried employees we see a reduction while there has been a small increase in production.
We are generally very satisfied with the fell compared to 2014 and the task now is to retain and possibly improve the turnover rate further.
Employee satisfaction assessment (ESA)For a number of years the company has conducted annual employee satisfaction assessments (ESA) in which the assessment itself contains 90 questions that must be answered using a scale from 1 to 5, and the company’s target is for satisfaction to remain above 4.0.
There has generally been a very good participation percentage in recent years and in 2015 99% of employees responded to the assessment, which is very satisfactory.
In 2015 the results of the assessment were calculated at 4.2, which is an improvement of 0.1 compared to 2014. The result is weighted by average and as such all subject areas have either maintained or improved the results compared to 2014.
Management is satisfied with the results and attribute it partly to our great Team Rynkeby project in 2015 as well as targeted focus on welfare in production and the Smiley scheme.
For all areas action plans have been established in the individual responsible departments in order to increase satisfaction to a minimum of 4.0.
With regard to communication of ESA the results are addressed at business meetings (general) and at all departmental meetings, the latter focusing on the results in each area and what the area needs to focus on or the support required from other departments in order to improve results and improve employee satisfaction.
There are new targets for the new strategy period 2016 - 2020. We continue with even more ambitious targets, also with regard to employee satisfaction.
DiversityThe company wants its employee composition to reflect the outside world a high degree in respect of age, race, sex, religion and nationality to the EM
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The company’s most important resource is our employeesand therefore we prioritize employee welfare, health andjob satisfaction very highly in the way the company is run,both generally and with regard to management. There is aclear link between achieving the strategic targets andachievements set for the company Rynkeby Foods A / S
Continues on page 22.
CSR report 2015Page 20
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Rynkeby produces beverages and other liquid fruit-based products at the factory in Ringe. The work is conducted responsibly, taking into account employee safety, health and job satisfaction. This also applies to external employees and visitors. We are protective of he good working environment that we consider to be basis for good and efficient production.
Safe workplaceRynkeby wishes to be a responsible employer when it comes to the working environment and as a minimum the company will comply with applicable laws and regulations in this area. We will ensure that we are one step ahead when it comes to legislative requirements and other requirements by entering into open dialogue with stakeholders, including authorities and business partners, with regard to the company’s working environment activities.
Training and educationVWe will inform, train and educate our employees to act in accordance with our rules for the working environment and work to ensue awareness of the working environment among our employees. We will ensure that our working environment policy is communicated to and and understood by our employees, focusing especilly on high risk deparatments.
Working environment organisationOur working regulations are used to know, manage and reduce the working environment impact caused by our operations. We also conduct risk assessments together with our working environment organisation and use these to establish specific targets and action plans for how we can improve our environment efforts.
Near-misses and work-related accidentsWe will establish and maintain procedures to efficiently manage ”near-miss” situations and work-related accidents. We will also ensue that contractors and visitors are familiar with and comply with relevant requirements set out in our working environment management system.
Job satisfactionWe will actively work to ensure that our employees are happy and that no one feels isolated in the workplace. All managers and employees are informed of Rynkeby’s five values and all employees must comply with these. Should there still be employees who feel dissatisfied or discriminated against, we will initiate preventative and corrective efforts.
CSR report 2015Page 21
extent that this is possible in relation to the existing employee group and new recruits. Where possible we would also like to support employees whose working ability is reduced, e.g. in the form of light duties or flexible working, if we have roles to support this and there are relevant jobs available.
Senior policyRynkeby is proud to have an excellent senior policy which means that from the date on which the employee turns 57 years of age (eight years prior to retirement age) the employee will be offered annual senior meetings where we will discuss opportunities and needs concerning their future working life, job role, senior-friendly duties, early retirement, etc. so that the senior age, calculated from five years before retirement age can be planned in the best possible way with regard to both the employee and the company.
We feel certain that the senior policy can support our clear desire to retain and utilise the older and more experienced workforce to benefit the company and the company’s other employees.
BullyingRynkeby Foods A / S has since 2006 worked seriously and ambitiously reducing bullying at work. The work has among others resulted in a policy against bullying and other efforts driven by employees and cooperative organisations in the company. The number of people who feel bullied, has fallen from 16% in 2006 to 3% in 2015, where the latter reveals that employees indicate that they at some occasions have been bullied, and none (0%) indicates that they are often bullied. We will continue to focus on eliminating bullying, and the goal remains that no
one should feel bullied.
Definition on bullying:Bullying in the workplace takes place when an individual, over a longer period of time, is exposed to repeated uncomfortable and negative actions or behavious that it is difficult to defend oneself against. Examples include: important information regularly being withheld, excessive monitoring of selected employees or continued criticism of their work or efforts. Typical actions associated with bullying include exclusion from the social community, rumours, gossip, ridicule or severe teasing.
Bullying often occurs as the result of conflicts not being resolved but escalating instead. The conflict may relate to work activities or professional or personal conflicts between employees. If they are not resolved, conflicts may develop into destructive personal conflicts and bullying. Another type of bullying is characterised by the victim being randomly selected. e.g. as a scapegoat for frustrations in a work team or for someone to demonstrate their power.
Bullying have serious consequences on health in both the short and long term, e.g. it could lead to anxiety, depression, stress, irritability, helplessness, etc. Bullying not only affects the victim but also the job satisfaction of colleagues, and the consequence of this could include increased negligence lower productivity and service level, increased absence due to sickness and increased employee turnover.
Working environmentIn 2015, we had 2 accidents with absence and 22 minor accidents without absence.
ANTI-BULLYING POLICY OBJECT
Rynkeby Foods’ objective is to be a goodworkplace where all employees are happyand where we respect each other and have
a healthy and positive workingenvironment. Bullying is therefore not
accepted in our workplace and is a problemthat we want to prevent and resolve in
cases where bullying is identified.
We have been far better to record ”near-misses” , which is great because it can prevent accidents. In the coming year we will continue with weekly follow-up on ”near-misses” incidents, minor accidents and accidents with absence. The target is 0 accidents and more than 100 ”near-misses”. We shall become better at spotting the danger, take precautions and take care of ourselves, so we can avoid injuries.
We have in 2015 celebrated many records with regard to efficiency as well as productivity. We can do this because we at Rynkeby have some really competent and dedicated employees with winning mentality.
At the end of the day all hourly-paid employees register a Smiley. Happy face means that you have had a good day.
The Smiley curve is fine and the trend of good days is going upwards. All in all we go to work every day, have a fine day and delivers an excellent job. We must continue to do this in 2016. We shall also work on doing it even better in the good way: Not harder - but smarter.
In addition to an increase in attendance, we also see a decrease in both short-term and long-term absence compared to 2014, while other registrations are stable (sick child, doctor visits, etc.).
All in all a satisfactory year and we will continue to focus on attendance through welfare interviews. Our welfare coordinators will also in cooperation with their respective leader follow up on the ” Smiley” every week and find out if we can do something differently, so that every day is a good day .:
CSR report 2015Page 22
EMPLOYEE TARGETS AND RESULTS
2012 2013 2014 2015 Employee turnover 18% 15% 14% 12% 12%
Employee satisfaction (total score) 4,1 4,1 4,1 4,2 > 4,2
”Good worklife balance” 4,2 4,1 4,1 4,2 > 4,2
Psychic working environment/number bullied 3% 1% 3% 3% 0%
”Generally I am happy and motivated” 4,4 4,4 4,3 4,4 > 4,5
Target2020
Walk and talk. The well-being of colleagues isimportant. In 2015 0% stated that they are oftenbullied.
REGISTRATION OF ACCIDENTS
The target is 0 accidents
We shall become better at spotting the danger, take precautions and take care of ourourselves to avoid accidents.Furthermore, ”near-miss” situations will now be discussed atweekly lean meetings.
Registrations Near-miss Minor accidents Work-relatedper year (without absence)
2015 52 24 22014 36 17 72013 31 3 42012 52 14 62011 62 12 5
CSR report 2015Page 23
In 2015 children admitted to three of the country’s Paediatric Oncology Departments created drawing together with their sibling for a new 200 ml organic apple juice drink.
The juice was called ”The children’s own juice” and was created to raise money for Team Rynkeby’s collection for the charity organisation Børnecancerfonden.
The project has taken place for some years now and we find that both the hospitalized children and staff in the child wards welcome it is a good, little break from everyday life, where the disease is omnipresent.
In total, the children’s work resulted in 21 beautiful drawings that can all be seen on Team Rynkeby’s website (www.team-rynkeby.dk/bornenes- juice) or on Irma’s website (www.irma.dk/bornenes-juice).
Four of the drawings were used on the juice packaging. One front depicts a grand building with flowers and apple tree inthe garden, designed by Denisa 6 years old. The second front is filled with cute smiling smileys and is designed by 4 year old Anna. On the third side there is a beautiful bee and the sun on a blue sky,designed by Merve 10 years.
At the top of the juice is small, fine, red apple drawn by Mai 6 years old.In the autumn of 2014 Mai was diagnosed with a tumor in the head, which pressed the optic nerve. Mai at that time was blind on the left eye and could only see with approximately 4% on the right eye. Her parents noticed already in early 2013that the little girl had a poor eyesight, but unfortunately, the tumor was first discovered in September 2014.
- Many doctor visits later Mai was operated at Rigshospitalet, where doctors removed 90% of the tumor. The rest could not be touched due to the location. Happily, the tumor turned out to be benign.
Today Mai is a happy and healthy girl who goes to a normal school but with assisting teachers at her side. She is still blind on her left eye, but can now see 20% with the right eye. Mai still goes for regular check of her vision and scans of the head.
Mai thought it was great fun that her drawing came on the juice, and she was really happy for Rynke. She loves teddy bears.
Rynke gives 6-year-old Mai a huge hug.
Once again children with cancer have designed the packing to apple juice from Rynkeby
UNIQUE COOPERATION
Besides children, a variety of businesses has contributed to the juice free of charge - But no
one besides Børnecancerfonden (The Children’s cancer Forundation) profited on the sale of the
juice, and that is unique.
Sales of juice brought about200,000 DKK to Børnecancerfonden,and it is therefore decided to repeat
the success in 2016
*Tetra Pak, Irma, Nørgård Mikkelsen m.fl.
THE CHILDRENS’OWN JUICE
CSR report 2015Page 24
2015 was in all ways a year of records for the Nordic region’s largest charity cycling team. 1,400 riders and 350 helpers from 32 teams in five countries participated in the 14th edition of Team Rynkeby’s annual bike ride to Paris for the benefit of children with cancer and their families.
The number of participants was the highest ever, and when the last donations were booked in September, Team Rynkeby could look back on a year in which it managed to raise no less than 48.1 million DKK to fight children’s cancer - 33 percent more than the year before and the largest amount, Team Rynkeby has ever collected.
The participants onTeam Rynkeby collected the money during 10 months through hard fundraising work where more than 5,500 sponsors helped with everything from six-figure sponsorships to food and fuel that the teams should use on their trip to Paris.
Team Rynkeby School RunOne of the season’s major events was ’Team Rynkeby School Run’ - a health and charity event that takes place Friday before the Easter holidays at 100 Danish schools and
attended by more than 34,000 pupils. Team Rynkeby School Run reminds of the classic running event, which many Danish schools hold before the autumn holiday. But in Team Rynkeby School Run pupils participate not only to do something good for themselves - they also participate to support children with cancer and their families.
Before the run the pupils have made sponsor agreements with their parents, grandparents, uncles, aunts, friends and neighbors who undertake to provide a small amount (Example 2 DKK.) per. kilometers the pupil is running.
With thousands of small donations the Danish pupils have succeeded
RECORD YEAR FORTEAM RYNKEBY48.1 million DKK. So much Team Rynkeby collected to thefight against children’s cancer in 2015.
in collecting 6,2 million DKK to Børnecancerfonden in Denmark.
Team Rynkeby School run will be extended in 2016, where the run also will be he held on even more schools in Denmark, Finland and Sweden.
5,000 relatives were in ParisThe tour to Paris in early July also went beyond all expectations. The 32 teams started the tour at 24 large events in 21 different cities in five countries and on four different days. The first days were marked by a severe heat wave that hit Northern Europe with temperatures over 40 degrees. It gave an extra challenge for the teams who had to make an extra effort to avoid dehydration among the riders. But some days later, the temperature had fallen to a more human level, and when the 1,400 riders were received by 5,000 relatives in Paris after seven to eight days in the
saddle all rigors were soon forgotten.
Team Rynkeby 2015 was the most fantastic year ever.
FACTS
Team Rynkeby donations in 2015:
Denmark (Børnecancerfonden): 32.830.091 DKK
Sweden (Barncancerfonden): 10.549.135 DKK
Norway (Barnekreftforeningen): 2.022.161 DKK
Finland (Sylva Ry): 1.782.782 DKK
Faroe Islands (Krabbameinsfelagið): 945.000 DKK
CSR report 2015Page 25
3. Theme: HEALTH
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2015 was the year where the major health event for employees was the bike ride to Paris with Team Rynkeby. 107 employees, ie more than half of all employees were cycling to Paris in week 28. In addition, the company was health certified in 2015, so it was in every way a ”healthy” year for Rynkeby Foods A / S.
Team Rynkeby employeesManagement decided in 2014 to offer all employees the opportunity to cycle to Paris and included some great offers such as the loan of a bicycle. The primary purpose of the project was to provide Rynkeby’s employees with a healthier lifestyle with exercise, but the side benefits such as better cooperation and well being among colleagues are certainly also worth mentioning.
As can be read elsewhere in this report, we saw in 2015 improved key figures on almost all parameters in our Employee Satisfaction Analysis. We also saw a decreasing employee turnover and increasing attendance among employees. We can not attribute all these improved numbers to the project “ Team Rynkeby Ringe 2015” but we believe that it is an essential cause. In order to ensure that the project would succeed a range of activities were launched including individual training programs provided by professional trainers and a diet program.
Diet program by SundKonceptIn December 2014 27 of the “newbies” on Team Rynkeby began a personal diet program with dietician Gitte Pedersen from SundKoncept as consultant. The offer was quickly extended to all
employees. Therefore, in April another 25 of Rynkeby’s employees started on the diet program. In total 52 employees then met up for regular check with Gitte and had a good talk about the challenges and pitfalls of their diet program. SundKoncept managed to move the focus from the never-ending weight loss to a lasting change of lifestyle, that gives them an added incentive to a healthier way of living with more energy for work and training.
AND THE RESULT WAS GOOD52 great personalities have together become “smaller” as follows:
Total weight loss in the period:155.70 kg
Total loss of adipose tissue in the period:146.40 kg
Total loss of waist circumference during the period:225 cm - or 2.25 meters
The diet program ended for the majority in the summer, when the trip to Paris started. HOWEVER, for a selected group of about 20 employees the program continued in the autumn of 2015.
CSR report 2015Page 26
Team Rynkeby 2015 - a huge success once again!
Gitte Rode Andersenfrom SundKoncept.
As part of the health certification, our canteenundergone a thorough health check.
CSR report 2015Page 27
”You have as an employee group given me as a consultant an experience I have not
experienced before in my life. You have as a united group demonstrated a high degree of motivation, enthusiasm and willingness to win over your individual challenges to a degree that it has influenced throughout
Rynkeby Foods. I was greeted by only happy and very committed employees who have
accepted guidance and recommendations in the best and most sound manner. ”
Consultant Gitte Rode Andersen
Spinning and road trainingPeleton was our training partner throughout the process up to the trip to Paris. During the winter months with spinning training in the local fitness center, and from April 1 weekly training on road. Training on the road was divided so that a selected group had extra ”Hill-training” in preparation for the trip, whereas the rest of the participants drove standard road training. Besides preparing training programs for employees, pep talks and motivation were part of the 3 trainers’ jobs in the process. It was some very proud and humble Peleton coaches who drove into Paris with the big Team Rynkeby Ringe team.
Health certificationIn June 2015 the company was health certified through the organisation Dansk Firmaidræt. The purpose of certification was to get a system for all the health improving initiatives that take place in Rynkeby Foods.
A health certification requires that the company works strategically and targeted with health promotion for employees. There must be action plans for all the areas: Diet - Smoking - Alcohol - Exercise - Stress.
As part of the certification, our canteen went thorough a ”health check” of the consultant Trine Kyed from Dansk Firmaidræt. It gave a few improvement suggestions to the already healthy canteen. Among other things, the consultant suggested that a part of the ” regular” salad and vegetables in the salad bar was replaced by root vegetables and different types of cabbage and beans. The canteen already use lots of fruit, vegetables, fish and whole grains. They always select lean meats and cold cuts, as well as cutting out fat, sugar and salt. The canteen only offers cake on Thursdays.
The health certification also implies that we as a company must offer health activities suited for both the trained and less trained employees. Examples of activities are: Employee satisfaction analysis (ESA), Exercise Club for employees, health check every two years, ”Count Steps” or ”Stand up” campaigns and the like - and of course Team Rynkeby. Friday before the autumn holiday - in pouring rain - we participated in the ”Workplace exercise day”, held for the first time by Dansk Firrmaidræt. 100 employees went for a walk around the neighbouring Ringe Lake - a distance of approximately 2.5 kilometers. Employees from all departments and on all 3 shifts - day, evening and night - participated.
The walk took place in connection with the lunch break, and the canteen staff therefore 3 times stood by the lake and served a free sandwich meal. In spite
Continues on page 34.
ANNUAL WHEEL
CSR report 2015Page 28
FACTS
As a new initiative we have asked our emplo-yees about our health services in connection
with the employee satisfaction assessment. The result is that 78% of the employees respon-ded that they have taken advantage of one of Rynkeby’s health offers. At the same time we
asked the question, ”How satisfied are you with the health services offered ”? The score was 4.4 on a scale of 5, which we consider as very satisfactory. Of the employees who do not use
Rynkeby’s health services, 49% replied that they’re exercising in another context.
1. Quarter 2015 2. Quarter 2015 3. Quarter 2015 4. Quarter 2015
Exercise grant Exercise grant Exercise grant Exercise grant
Company soccer
Diet program/Sundkoncept Diet program/Sundkoncept Diet program/Sundkoncept
continues with selected group continues with selected group
Lecture dietary advice part 2 Cycle training Team Rynkeby Tour The workplace
(TR All) (TR All) exercise day
Folder about sleep Søsletteløbet Count steps competition MFC New Year spinning event
Spinning Stop smoking offer Stand up campaign -
Health certification at Rynkeby
”Workplace exercise day” – Lunch is served in spite of the pouring rain.
Congratulations to uswith our health certificate.
Spinning in the locale fitness center during the months of winter
CSR report 2015Page 29
HEA
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Unprocessed or lightly processed fruit and vegetables are often healthier and consumers should eat at least 600 g of fruit and vegetables every day. A large proportion of Rynkeby products can be included in this fruit and vegetable balance as a glass of juice equals 100 g fruit/vegetables (maximum) an can therefore replace one of the six daily pieces of fruit and vegetables (100 g) recommended by the Danish National Board of Health.
Water is the healthiest drink. Nevertheless, many consumers continue to drink a number of different types of beverages that are far from healthy. We consider our products to be a healthier alternative to fizzi drinks, soft drinks without fruit and similar, as all our products are fruit-based.
EmployeesWe continuously identify focus areas to promote the health of our employees. It is our clear conviction that
exercise and a healthy diet positively affects both work and personal life and we are happy to support events that contribute to promoting health. We have set out a number of health objectives that we work towards, e.g. concerning
n fewer physical problemsn healthier foodn health checksn loosing weightn more exercise andn fewer smokers
We acknowledge that it takes time to promote health in the workplace and that we are looking at a long process, which means that we are continuously identifying a number of focus areas to support our health objectives.
of the weather the event was a great success.
Smoking in 2015Again In 2015, a few employees have stopped smoking and some with help from Rynkeby. Smoking is very unhealthy and in no way compatible with a healthy company, therefore we will continue to help smokers to become smoke-free.
Employee health statusRynkeby Foods A / S offers all employees a health check about every 2 years. For night workers, the offer is mandatory, while for all others it is a voluntary offer.
Next health check is carried out in January-February 2016 why the result is
not included in this report. We hope and believe that we will see improvements compared to the latest health check from December 2013.
This time we have chosen to offer an extended check, which contains numerous parameters, including blood sugar and cholesterol, fat and muscle mass, calculation of body age and a health questionnaire with focus on diet, smoking, alcohol, exercise and stress. Well-being is not included in this check as this is part of the annual employee satisfaction assessment (ESA), as described elsewhere in this report.
We have set new ambitious targets for the coming years’ efforts to improve
employees’ health. As something new we have chosen to compare our targets and achievements with the national health profile (NHP) from 2013. The upcoming health check is adjusted so that the results are comparable with NHP.
CSR report 2015Page 30
SMOKING:
Number smoking daily 17% 16% 14%
OVERWEIGHT:Severe or moderate overweight 47,4% 33% 30%Obesity 14,1% 25% <14% PHYSICAL ACTIVITY::Moderate or hard physical activity in spar e time 29,2% 50% 50%
PHYSICAL ANNOYANCES AND DISCOMFORTS THE LAST 14 DAYS:Bothered by pain and discomfort (distributed on the following questions)
Fatigue 15,8% 47,4% 63,2% – <60%Pain / discomfort in the arms, hands, legs, knees, hips or jo ints 15,3% 38,4% 53,7% 54% <50%Pain / discomfort in the shoulders a nd neck 13,4% 37,5% 50,9% 55% <50%Pain / discomfort in the back or lower back 13,9% 36,9% 50,8% 33% <50%Insomnia, sleep problems 11,0% 30,0% 41,0% – <40%Headache 6,9% 27,9% 34,8% – <34%Depressed mood, depressed, unhap py 5,9% 23,2% 29,1% – <29%Anxiety, nervousness, restlessness and anxiety 4,9% 21,5% 26,4% – <26%
ALCOHOL:
Items consumed per. weekLow Risk: Drinking more than 7 drinks for women and 14 for men per. week 20,6% 2,2 High risk: Drinking more than 14 drinks for women and 21 for men per. week 8,5% -
162.283 people at the age of 16 years or over have participated in the national health profile.54 questions about their health, morbidity and well-being have been answered.The survey is carried out every 3 years (again in 2017) by the National Institute of Public HealthSundhedsstyrelsen.
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HEALTH TARGETS RYNKEBY FOODS 2015 - 2020
CSR report 2015Page 31
improvement in key figures for electricity consumption due to energy saving investments .
Change of light sourcesIn 2015, we decided to invest in the somewhat more expensive but more energy efficient LED lighting. Over the year we have replaced following:
584 fluorescent lamp luminaries of 134 W with LED lighting of 56 W 39 large lamps of 430 W to 230 W 12 small lamps of 260 W to 100 W
We have estimated expected, annual savings of 346,969 kWh., with a corresponding CO2 reduction of 105 tonnes per year or said in another way: equivalent to the annual electricity consumption of approximately 65 families of 4 people living in a house.(Source: Energistyrelsen ((sparenergi.dk)).
Energy rationalization of waste water treatmentRynkeby’s current Waste water treatment plant was established in 2003 and has subsequently been extended a couple of times.
In order to comply with our environmental policy we have for a number of years focused our work on optimizing our production and cleaning processes and routines to reduce our environmental impact and costs.
All our environmental targets for 2011 - 2014 with regard to energy, water, waste water as well as wastage of raw materials and packaging were met as early as 2012, but the pace continues and we have already been able to demonstrate further improvements.
However, we have had a challenge in 2015 caused by a significantly lower production volume than in previous years, which negatively influenced our key figures. The reason for the lower production volume is that we lost a big order to a foreign competitor. Although we produce smaller volumes of juice we still have the same costs for running of cold stores, heating of production and office facilities, and last but not least, process equipment and premises that still has to be cleaned efficiently.
In spite of this, we have nonetheless succeeded in obtaining a great
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ENERGY CONSUMPTION KWH PER M3 WASTE WATER SUPPLIED IN 20155
4,54
3,53
2,52
1,51
0,50
JAN FEB MAR APR MAJ JUN JUL AUG OKT NOVSEP DEC
4. Theme: THE ENVIRONMENT
CSR report 2015Page 32
In 2015, we have chosen to invest in a new energy-saving aerators for our Waste water treatment. The old system consisted of a total of 5 bottom aerators, 2 of 30 kW and 3 of 25 kW. These have been replaced with a turbo blower of 69 kW and corresponding plate aerators.
Expected annual, energy savings of 254,996 kWh has been calculated, equivalent to a reduction of CO2 emissions of 87 tonnes per year. The CO2 emission saved corresponds in other words to the annual emission of an additional 48 houses with 4 residents. (Source: Energistyrelsen (Sparenergi.dk)).
The graph on the left shows electricity consumption per supplied cubic meters of waste water to the waste water treatment plant. The new aeration principle was put into operation in early June, and immediately resulted in a significant drop in electricity consumption per m3 to about a 1/3.
Total energy consumptionThe measures described above can also be seen on the total electricity consumption, as the chart below shows.
As can be seen from the graph lines below efficiency dropped in 2015 slightly from 63.5 to 63.3. This is due to the
fact that the average batch size in 2015 has been smaller than in 2014. The production lines therefore have not been able to work as effectively. Line efficiency is the ratio of the planned time when the filling machine delivers maximum output.
The ratio of gas per 1000L product has risen by about 7% compared to 2014, primarily due to lower production volume in 2015. Besides, we have invested in new natural gas burns with oxygen control and speed regulation in order to reduce gas consumption and thus our CO2 emissions. We had expected a saving of about 200,000 kWh per year, equivalent to 2% less consumption. The equipment has not been able to deliver the desired output yet, but we work on improvements.
The electricity consumption ratio - despite lower production volume - decreased by approximately 2% as a result of the investments made on lighting and waste water aeration.
As our figures for CO2 emissions are calculated exclusively based on our consumption and combustion of natural gas, the mentioned improvements for electricity consumption are not seen in the CO2 key figure.
CSR report 2015Page 33
ELECTRICITY CONSUMPTION kWh per 1000L produced
(right axis, line efficiency in %)
NATURAL GAS m3 per 1000L produced
right axis, line efficiency in %
59
57
55
53
51
49
47
4511 12 13 14 15
6563615957555351494745
8
7,5
7
6,5
6
5,5
511 12 13 14 15
6563615957555351494745
CSR report 2015Page 34
Reduction of water consumption and waste water dischargeIn Rynkeby we have two key figures for water consumption.
One is our water consumption per litre of produced product. This figure is influenced by a number of factors. One factor is the water that is included in our products. When using concentrate we use water, this is typically mixed 1: 4 with water. However when we use NFC (not from concentrate), we do not add water. Another factor is the water, that we use to flush the pipes between product changes, and this is therefore affected by the number of product changes. A third factor is the water we use for CIP cleaning of machines and mixing tanks, as well as other cleaning.
The other key figure is waste water per liter produced product. This figure is affected by the above factors with the exception of the water included in our products.
The graphs below show that we have reduced water consumption by 2% since 2014. Some of the reasons for this are,
that the relationship between sales of NFC juice and juice from concentrate has changed in 2015 compared to previous years. We produce more NFC juice (without adding water) and less juice from concentrate, which explains the lower water consumption in 2015.
In contrast, the key figure for waste water per liter produced product has increased due to smaller batch sizes, rise in smaller product lines and thus more cleanings.
Reducing wastageThe figure on the opposite page shows that we from 2011 to 2014 every year have reduced product wastage. We have done that by working intensively to implement a pigging system on our production lines, increasing the batch size and by focusing on recycling of excess product from one production to the next.
In 2015, our average batch size was reduced by approximately 5000 liters due to a net increase of article numbers and a declining production volume. To maximize batch size and thus the
wastage, we have optimized product duration and thereby lowered the production rate for each product. It has on the one hand led to a reduction of product and carton wastage, but also resulted in an increase in the discarding of production residues (barrel residues), which cannot be reused in subsequent production. The reason is that the duration of barrel residues typically is relatively short. We are therefore working to find ways to extend the shelf life of the barrel residues, which should lead to a reduction in product wastage.
Measured in value wastage is also negatively affected by many of the new products, primarily NFC (not from concentrate) products, which have a higher cost, and typically produced as chilled juice, where shelf life is shorter and therefore produced weekly or every other week. Generally, the demand for NFC juice is rising. We also measure packaging wastage. Packaging wastage has declined compared to the last 2 years, and was positively affected by the increased production rate, and especially by a fall in production of products in small cartons (e.g. 250 ml juice), where there is a larger packing wastage compared to products in 1 liter cartons - the ”milk carton”.
WATER CONSUMPTIONm3 per 1000 l produced
(right axis, line efficiency in%)
6563615957555351494745
2,55
2,45
2,35
2,25
2,15
2,05
1,95
1,85
1,7511 12 14 1513
WASTE WATER m3 per1000 l produced
(right axix, line efficiency in %)
1,05
1
0,95
0,9
0,85
0,8
0,75
0,7
6563615957555351494745
11 12 14 1513
CSR report 2015Page 35
PRODUCT WASTAGE in % of produced value
(right axis L per production batch)
PACKAGING WASTAGE in % of produce d value
(right axis L per production batch)
2,5
2
1,5
1
36000
34000
32000
3000011 12 13 14 15
36000
34000
32000
30000
1,4
1,2
1
0,8
0,611 12 13 14 15
CSR report 2015Page 36
Rynkeby Foods’ Distribution Department has an ongoing commitment to become a greener company and make choices that result in improvements to the environment. This means that we continuously optimize processes, which in practice means that we consider where we can find the largest environmental gains, and then direct our focus there.
In December 2015 Rynkeby replaced 3 trucks with new environmentally friendly model in order to become greener and achieve reduction of both fuel and CO2. The trucks are all from the start operating according to the Eculotion system.
The name, Eculotion builds on main areas that support our ambition to optimize and achieve energy savings, such as:
•the truck is specified for the current tasks that Rynkeby performs.• maintenance is included, with focus on fuel consumption.• driver coaching is a natural part of daily operations.
For us the choice of vehicles with Eculotion is an effective way to maintain our competitiveness whilst optimizing fuel consumption, including coaching of our drives to become a more environmentally friendly driving behavior.
Based on the average fuel savings of vehicles using Eculotion we expect a reduction of the fuel consumption of minimum of 7-10% compared to the reference vehicles.
The savings are achieved more or less instantaneously and the solution is designed to improve fuel consumption continuously throughout the operation period. The target for 2016 is a further replacement of trucks to ensure a continuous optimization of the environment and maintenance.
As we first bought the new trucks in December 2015, we have not yet seen the effect of the investment. Our figures for fuel consumption have decreased slightly in 2015 to 3.04 km / l, where we in 2016 drove 3.06 km per. liter diesel.
The reason is that the three oldest trucks (now replaced) ran very poorly in November and December with many
workshop visits as a consequence. Up to and including October, the trucks were running 3.07 km / l. We hope to see the full effect of the investment in 2016.
IMPROVEMENTS IN THETRANSPORTATION AREA
CSR-rapport 2015Side 37
Rynkeby aims to become a greener and more sustainable company. This means that we must avoid wastage, optimise our processes and always strive to identify the most sustainable solution. In practise this means that we will consider where we can find the largest environmental benefits and will focus our efforts accordingly.
EnergyWe must save energy and always work toward energy-efficient solutions in existing and new processes.
Food waste and resourcesWe consistently work to avoid all types of wastage, including food, materials, fuel, energy, raw materials and other types of resources linked to our operation.
We also ensure that our waste is recycled, reused and re-utilised to the greatest
extend possible. Should wastage still occur, we will ensure sustainable disposal.
EquipmentWe design new production plants and procure equipment that meets or exceeds the requirements set out in relevant environmental standards.
Climate changesWe contribute to minimising global warming by continuously working to reduce carbon emission. In part this takes place through our focus on resources and energy optimisation.
MIL
JØP
OLI
TIK
CSR target - complete overview
CSR report 2015Page 38
* To be analyzed
2012 2013 2014 2015 Targets in 2020
ValuesEveryone at Rynkeby must know/comply with our five values. ”Do you comply with or values in every day live?”
4.4 on scale to 5.0
Min. 4.2 for qustion (ESA)
Min. 4.3 for qustion (ESA)
Min. 4.3 for qustion (ESA)
Min. 4.2 for qustion (ESA)
Fair Speak 0 orders/judgements concerning mis-leading marketing 0 0 0 0 0
Management
Good management must be maintained and measured as part of the employee satisfaction assesment (ESA) Questions concerning management.
4.0 4.1 4.1 4.3 Min. 4.2 for qustion (ESA)
SGF Proportion of SGF-authorized suppliers (fruit and vegetables) 70.7% 63.0% 65.0% 63.0% TBA*
SGF Proportion of SGF-authorized raw mate-rials (fruit and vegetables) 75.8% 70.0% 65.0% 64.0% TBA*
Code of conduct Proportion of suppliers who have signed the Rynkeby, Arla, or SGF COC 100% 100% 100% 100% 100%
Certificates Proportion of major faults identified during audits 0 0 0 0 0 majors
Local community Complaints from the local community (number of residents) 1 0 0 0 0 complaints
Employee satisfaction Employee turnover 18.40% 15.0% 19.90% 12.0% 12.0%
Employee satisfaction Total score for the company as a whole 4.1 4.1 4.1 4.2 Min. 4.2
Employee satisfaction ”There is a good balance between your work and your private life” 4.2 4.1 4.1 4.2 Min. 4.2
Psychological working environment Number of victims to bullying 3% 1% 3% 3% 0%
Employee satisfaction Generally feel happy and motivated 4.4 4.4 4.3 4.4 Min. 4.5
Training days (employees paid on an hourly basis Number of days per year
1 week(+1 day workshop per
coordinator
1 week(+1 day workshop per
coordinator
Almost 1 week per employee as an average
3.7 days 2.5 days per employee
Consumer complaints Denmark per 100 million litres 429 271 127 319 Max. 300
Consumer complaints Sweden per 100 million litres 1070 811 845 1057 Max. 700
Consumer complaints Finland per 100 million litres 2161 667 816 1070 Max. 700
Consumer health Number of schools participating in ”Team Rynkeby School Run” in Denmark NA NA NA 8 120
CSR target - complete overview
CSR report 2015Page 39
2012 2013 2014 2015 Targets in 2020
First Aid
First-aid training will offered at no charge for Working Environment and Occupational Health Coordinatorsw. Preferable during working hours
Offered to everyone, incl. Training in the use of defibra-
lator
Offered to everyone, incl. Training in the use of defibra-
lator
Offered to everyone, incl. Training in the use of defibra-
lator
Offered to everyone, incl. Training in the use of defibra-
lator
Min. once per year
Occupational safety Registered ”near-miss situations” 52 31 36 52 No target
Occupational safety Registered - minor injuries (no absence) 14 3 17 24 0
Occupational safety Registered work related accidents 6 4 7 2 0
Employee healthProportion of employees with physical problems with the musculoskeletal system
Not measured 66% Not measured Not measured Max. 50%
Employee health Proportion of smokers Not measured 16% Not measured Not measured Max. 14%
Employee health Proportion ”very overweight” Not measured 25% Not measured Not measured Max. 14%
Employee health Proportion ”overweight” Not measured 33% Not measured Not measured Max. 30%
Employee health Number of employees with moderate or physical hard training in spare time Not measured 42% Not measured Not measured Min. 50%
Attendance Attendance in % of number of em-ployees 96.6% 96.8% 96.4% 97.6% 97%
Environmental target Fuel consumption (trucks) 3.0 km/l 2.91 km/l 3.06 km/l 3.04 km/l 3.2 km/l
Environmental target Electricity consumption per tonne of product 48.56 kWh 50.4 kWh 51.8 kWh 50.9 kWh Max. 45 kWh
Environmental target Waste water per tonne of product 0.77 m3 0.74 m3 0.72 m3 0.78 m3 Max. 0.515 m3
Environmental target CO2 consumption per tonne of product (excluding fuel) 13.1 kg 12.9 kg 12.5 kg 13.35 kg Max. 12 kg
Environmental target Gas consumption per 1000 liter product 5.82 m3 5.82 m3 5.53 m3 5.93 m3 Max. 5.15 m3
Environmental target Raw material wastage of raw material consumption 1.61% 1.50% 1.27% 1.50% Max. 1.25%
Environmental target Packaging wastage of packaging consumption 0.88% 0.98% 1.03% 0.89% Max. 0.75%
PLANET
PROFIT
HEALTH
PEOPLE
Miljø/klima Sundhed
Forretning Mennesker