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Annual review 2015

Sustainable environment

It’s not just what we aspire to do, it’s what we do

Sustainability vision 2020

Our progress in 2015

Ambitions for 2016

Global CSR initiatives

In 2015, close to half of our Operating Companies were involved in CSR activities...

Supporting catfish farmers in Nigeria

Sustainable dairy in Indonesia

In Indonesia, Nutreco contributes to the joint food security programme of the Dutch and Indonesian governments...

Upgrading fish waste in Africa

NutrECO-line

Developing sustainable nutritional solutions means proactively identifying existing and upcoming issues in our industry.

Limited assurance

Full reasonable assurance was what we were striving for...

Incidents

Get in contact

Contact us

Nutreco N.V.

Prins Frederiklaan 4
3818 KC Amersfoort
P.O. Box 299
3800 AG Amersfoort
The Netherlands

Phone: +31 (0)33 422 6100
Fax: +31 (0)33 422 6105
E-mail: corpcomm@nutreco.com
Trade Register no 16074305 Eindhoven (NL)


Nutreco Nederland B.V.

Veerstraat 38
5831 JN Boxmeer
The Netherlands

Phone: +31 (0)485 589 955
Fax: +31 (0)485 574 518
Trade Register no 16058721 Eindhoven (NL)

Sustainable environment

Sustainable environment

Watch this animation and learn what we do to improve our sustainability

Sustainable environment

Sustainability vision 2020

By 2050, it is estimated that our planet will have a population of 9 billion people. The world will need to increase its food production by 70% in order to meet future demand, while simultaneously reducing the environmental impact by half. What can Nutreco do to help?

Our comprehensive sustainability vision towards 2020 is based on clear ambitions regarding people, planet and profit. These ambitions are an integral part of our strategy to become a global leader in animal nutrition and fish feed by delivering highly innovative and sustainable nutritional solutions. Vision 2020 is our roadmap to that aspirational dot on the horizon. In order to ensure that this vision is completed and our sustainability targets are achieved, we developed our Nuterra Standard, which takes 115 compliance criteria across the four pillars of sustainability vision 2020 and allows each Operating Company to perform a self-assessment to ascertain where they are situated along the path to 2020. This tool assists managers on where they should focus their sustainability activities to ensure completion of our goals.

Sustainable environment

2015 objectives & results
Managing sustainability
  • Target: Create global alignment on ‘coordinated sustainability actions’ in our Business Units, based on the Sustainability Vision 2020.
  • Result: 100% achieved. Sustainable Nutrition Standard self-assessment for our EMEA, Feed Additives and Global Salmon & Fish Feed Southern Europe BUs which culminates in approximately 49% Nutreco-wide self-assessment of the Nuterra Standard. This reflect where we are along the Roadmap of Vision 2020.
Ingredients
  • Target: Collaborate with our Quality Affairs team to implement sustainability audits of suppliers.
  • Result: 100% achieved. We “piggy-backed” on typical supplier food safety and quality audits. A total of 42 supplier audits were conducted: 20 from Trouw Nutrition and 22 from Skretting.
Operations
  • Target: Implement the monitoring and recording of five sustainability KPIs (CO2, water, waste, energy and LTI) in the quarterly business review process in 49% of our operating companies.
  • Result: 50% achieved.

    1a) Integrated Reporting initiative: Three BUs including BU EMEA, Feed Additives and Global Salmon & Fish Feed Southern Europe completed integrated reporting which culminates in approximately 49% Nutreco-wide in quarterly reporting five KPIs; CO2, Energy use, Water use, Waste, & Lost Time Incidents (LTI);

    1b) Reporting through financial controllers and the HFM template;

    1c) Dashboard graphical representation of KPIs to support embedding the discussion in the quarterly management business review meetings;

    1d) External auditor awarding Reasonable Assurance on data.

    We were not awarded “Reasonable Assurance” by our external auditors and obtained “Limited Assurance” in reference to this target. This was an enlightening experience that showed us that in spite of having a detailed Operations Manual that well defines scope and definitions, global interpretation across multiple geographies is a challenge.
  • Target: Reduce global print volumes compared to baseline 2014.
  • Result: 100% achieved.

    Reduce printing initiative: Assessment printer brands and development of behavior-change-campaign in 10 languages. Worldwide role out in next years. First role out at 2 locations in October. Monthly reporting available as from 2016
Nutritional solutions
  • Target: Assess two global products.
  • Result: Not achieved.

    We elected not to invest resources in 2015 on specific product assessment but decided to do one mega-assessment of all Skretting products offered throughout the farmed salmon lifecycle during 2016. This assessment will build on NutrECO-line and reflect the environmental feed footprint of one unit of farmed salmon produced. This will have a more practical value for our customers.
  • Target: Involve sustainability in the initial phase of stage gate process.
  • Result: 100% achieved.

    Our stage gate process has five distinct stages. Sustainability and the measuring of sustainability indicators are embedded in stage 1: Idea Gathering.
Commitment
  • Target: Expand e-learning module to other target groups: Corporate staff and all staff with external roles with a maximum of 3,000.
  • Result: 100% achieved.

    Our e-Learning initiative to build internal awareness continues to increase.

    2014 OpCo Management: 442 participants 92% above target.

    2015 Staff: 589 participants 55% no target set.
  • Target: Extend Global Harvest Day.
  • Result: 100% achieved.

    Community Engagement Day: Expanded corporate initiative to all employees in the Netherlands. 5 locations, 312 participants (50% participation level), 25 projects. Collective start in the morning, produced a video movie that documented staff activities with the communities to share experiences.
  • Target: Continuation of our community engagement projects in Nigeria and Indonesia.
  • Result: 100% achieved.

    Impacting Communities: Launched Nigeria and Indonesia. Targeting small farmers to increase livelihoods.
  • Target: Organise AgriVision.
  • Result: 100% achieved.

    AgriVision 2015 Keynote speaker was Madeleine Albright. Over 400 delegates participated from 45 countries - SHV Sustainovation Board attended key note speech.
  • Target: Extra target activity
  • Result: 100% achieved.

    Conducted a Sustainovation Hub Challenge for 14-days with 80 employees – which generated 21 ideas; 64 enrichments; 22 participants from 14 countries.
Additional objectives
  • Target: Create global alignment on coordinated sustainability actions on sustainability vision 2020 through a) The creation of the Nuterra Standard, and b) self-assessment of the Nuterra Standard.
  • Result on a): 100% achieved. The Nuterra Standard ensures that the milestones from the sustainability vision 2020 are measured per Operating Company and progress is tracked over time. Operating Companies can measure and monitor their progress through completing the self-assessment questionnaire.

    Result on b): 100% achieved. In 2015, The Nuterra Standard self-assessment was applicable for the Nutreco Business Units corresponding to EMEA, Global Salmon & Fish feed Southern Europe and Feed Additives; executed by 100% of the Operating Companies. Average scores were 71%, 76% and 81% for Feed Additives, EMEA and Global Salmon Feed respectively. The scores show there are yet some efforts needed towards reaching our 2020 objectives and every Business Unit should start working towards fulfilling those goals.

Sustainable environment

Ambitions for 2016
Managing sustainability
  • Sustainable Nutrition Standard self-assessment for our Asian and Americas BUs which culminates in 100% Nutreco-wide self-assessment of the Nuterra Standard. This reflect where we are along the Roadmap of Vision 2020.
  • Continue with our Issue Management initiative in outlining the relevant issues of sustainability with the issues that affect our value chain.
Ingredients
  • Continue mandating new suppliers to sign-off agreement to our Supplier Code of Conduct.
  • Continue “piggy-back” sustainability audits in combination with quality audits.
Operations
  • Integrated Reporting initiative: The additional incorporation of BU Asia and Americas integrated reporting which culminates in 100% Nutreco-wide of quarterly reporting five KPIs; CO2, Energy use, Water use, Waste, & Lost Time Incidents (LTI).
  • Reporting through financial controllers and the HFM template.
  • Dashboard graphical representation of KPIs to support embedding the discussion in the quarterly management business review meetings.
  • External auditor awarding Reasonable Assurance on data.
Nutritional solutions
  • e-Learning module on sustainability attributes of selected global products.
Commitment
  • e-Learning module introducing Sustainovation and the Sustainovation Hub (which is our parent company’s sustainability platform.
  • Europe-wide Community Engagement Day which is a continuation and escalation in scope of the previous Amersfoort CSR Day.
  • Continue the Community Engagement projects of helping raise the livelihoods of up to 1,000 small catfish farmers in Nigeria (partnered with OxfamNovib) and up to 1,000 small dairy farmers in Indonesia (partnered with Wageningen University).
  • Organization of AquaVision 2016 in Stavanger, Norway.

Sustainable environment

Global CSR Initiatives

In 2015, close to half of our Operating Companies were involved in CSR activities. These initiatives included:

Skretting Chile

Skretting Chile continued its support of local charities, especially those dedicated to assisting children that have been abandoned and/or living in poverty, by helping to improve their quality of life. Actions involved a summer camp, providing school materials to children, running risk prevention workshops and home improvements.

Nutreco Canada

Nutreco Canada participated in the Tackle Hunger Campaign. This national initiative sees the collection of non-perishable food items and cash donations from various communities across the country that are then donated to local food banks for distribution among families in need.

Skretting UK

Skretting UK maintained its work with local communities to improve the employability of some of their residents. This programme provides suitable applicants for a formal job interview at the Operating Company and the best candidates are selected for a six-week work placement and training. At the end of this period, Skretting UK looks to retain a number of applicants for a minimum of six months' work, with the potential to move into a full-time role. Over the last two years, 16 people have been put through this process, of which eight were given temporary contracts, and two from that eight moved onto full-time employment with us.

Sustainable environment

Supporting catfish farmers in Nigeria

In Nigeria, Nutreco wishes to improve the livelihoods of owners of small-scale fish farms by helping develop the aquaculture value chain. The main constraints in African aquaculture include a lack of quality feed for tilapia and catfish, the production of quality fingerlings and the demonstration of good farming practices. In its ambition to improve the productivity of these farms, Nutreco and our local joint-venture Skretting Nigeria are working together with Oxfam Novib and our local partner Durante.

In 2014, two feasibility studies were executed to identify robust local partners. These studies established that there were good opportunities to support farmers around Ibadan to either set up or improve tilapia and catfish farms as financially sustainable enterprises. The outcomes of the feasibility studies have led to a one-year pilot project.

In July 2015, Oxfam Novib and Nutreco entered into a one-year pilot project to support small-scale catfish farmers around Ibadan, Nigeria. The project is carried out in close cooperation with two local NGOs: the Farmers Development Union (FADU) and Justice, Development & Peace Commission (JDPC) in Ibadan. The project has a broad objective of contributing to a sustainable fish farming sector in Nigeria, in which small-scale farmers, women and young localscan benefit from economic opportunities in an environmentally sound manner. Nutreco, Oxfam Novib and the involved local stakeholders see ample opportunities to increase the yield of these fish farmers and thereby contributing to the global challenge of feeding 9 billion people sustainably in 2050.

More specifically, the project aims to 1) Enhance the income of current and new fish farmers around Ibadan, 2) Improve the yield, quality, management and environmental sustainability of current fish farmers around Ibadan, and 3) Encourage more fish farmers to set up new ponds in a sustainable manner to boost fish production and reduce the Nigerian dependency on fish import. Several clusters of farmers in the vicinity of Ibadan have been identified in order to make the pilot project cost-effective and commercially attractive for the technical assistance and fish feed operations of Skretting Nigeria. Key activities by Skretting Nigeria include the training of community officers (representatives of FADU and JDPC, who visit the various farmer groups on a weekly basis) and farmers on improved farm management. This includes water quality management, good feeding practices, fish handling, and environmental control.

Timeline: The pilot is scheduled for the period July 2015 – June 2016. If the pilot is successful, the project will be scaled up and extended for three years.

Sustainable environment

Sustainable dairy in Indonesia

In Indonesia, Nutreco contributes to the joint food security programme of the Dutch and Indonesian governments. Our local Operating Company, Trouw Nutrition Indonesia, manages a project that aims to raise the milk yields of smallholder farms in West Java by means of improved farming practices and feed quality. We will ensure the supply of higher quality concentrates feed by empowering one or two medium-sized cooperatives (400-1,000 smallholders) through upgrading and turnkey management of the feed facilities. The project was launched in December 2014 and the first action was to select appropriate cooperatives to work with. Trouw Nutrition Indonesia is partnering with Wageningen University in the Netherlands. The project will last until 2017.

The project strives for a production increase of more than 25%, as well as a more consistent level of average milk production per cow, and improved feed rations with higher nutritional value adopted by over half of the participating dairy farmers.

The first phase of the project (end of 2014 – May 2015) was successfully completed with the selection of two dairy cooperatives in West Java province. The involved parties are a medium-sized cooperative in Garut regency (KPGS Cikajang) and a small-sized cooperative in Kuningan regency (KPSP Saluyu).

The second phase is currently ongoing and consists of three main activities: Firstly, increasing the supply and quality of forage; secondly, to improve the availability and quality of feed concentrate; and thirdly, to improve the capacity building of the cooperative’s feed advisor, with the objective to ensure better advice to and training of farmers to apply in the field of improved feeds and better feeding practices. The feed pilot is being implemented on nine demofarms. In this second phase, Trouw Nutrition Indonesia is bringing in feed expertise and lab services. It will also train the advisors on feed concentrate improvement and feeding practice, and assist in capacity building within the cooperatives.

Sustainable environment

Upgrading fish waste in Africa

In many parts of Africa, there is a shortage of animal protein for food as well as for both livestock and fish feed. This makes the efficient use of protein sources a necessity. Industrial fish processing or small-scale fisheries in many countries produce by-products, which are currently underutilised or wasted. These by-products are an excellent source of animal protein, but preservation and processing is difficult due to their small scale. Together with several partners, Nutreco has started a research project to investigate how these by-products can be made available for animal and fish feed purposes. Ensilaging (a silage technique using acids) could be a viable option. Ensilaging is currently applied to whole fish and fish parts. The project will look into ways to optimise this technique for fish waste as well. The objective is to make it possible for fish waste to remain unrefrigerated for up to six months, which will make it economically viable as a feed ingredient. A small-scale fish silage plant will be set up first in the Netherlands to test the possibilities for tuna waste. In a later stage a facility will be built in Somalia. In addition, the application of fish silage as feed ingredient will be tested in animal feed for aquaculture and poultry in Kenya and Ethiopia.

The project will take about three years. In addition to Nutreco, participants include Wageningen UR, GEA Westfalia Separator Netherlands BV, Habo Tuna Factory in Somalia, Wananchi Marine Products (Kenya) Ltd and Rainbow Agro.

Sustainable environment

NutrECO-line

Developing sustainable nutritional solutions means proactively identifying existing and upcoming issues in our industry. In 2013, we developed NutrECO-line, a Life-Cycle Assessment (LCA) methodology framed around eight impact categories that can measure the sustainability attributes of Nutreco global products. NutrECO-line has been successfully audited for the ISO9001 criteria. An external Scientific Council line has provided advice and guidance regarding NutrECO-line. The Scientific Council comprises the following members: Prof Dr Matthias Finkbeiner of the Technical University of Berlin, Prof Dr Ilias Kyriazakis of the University of Newcastle, Dr Friederike Ziegler of the Swedish Institute for Food and Biotechnology and Prof Dr Sarah McLaren of Massey University and the New Zealand Life Cycle Management Centre.

We elected not to invest resources in 2015 on specific product assessment but decided to do one mega-assessment of all Skretting products offered throughout the farmed salmon lifecycle during 2016. This assessment will build on NutrECO-line and reflect the environmental feed footprint of one unit of farmed salmon produced. This will have a more practical value for our customers.

Sustainable environment

Limited assurance

Reducing the environmental impact of our operations is one of the key commitments from our sustainability vision. The biggest environmental impact of the protein value chain comes from crop cultivation, as well as activities at farm level. As such, our production facilities and operations have a relatively small influence on the overall environmental footprint. Nevertheless, we can only ask other parties in the chain to live up to our standards if we have ensured that our own house is in order. This is one of the reasons why clean and safe operations are important, as is our ambition to decarbonise our operations.

For 2015 we had two objectives:

Implement the monitoring and recording of five sustainability KPIs (CO2, water, waste, energy and LTI) into the quarterly business review process in 49% of operating companies, and

Reduce global print volumes compared to baseline 2014.

Regarding the monitoring and recording of the sustainability KPIs, we strived for reasonable assurance by KPMG, our external auditor. However, we were not awarded “Reasonable Assurance” and obtained “Limited Assurance”. This was an enlightening experience that showed us that in spite of having a detailed Operations Manual that well defines scope and definitions, global interpretation across multiple geographies is a challenge.

CEO of Nutreco

Nutreco's CEO Knut Nesse

Although we realised a significant drop in the total number of lost time incidents (LTI) in 2015, there was one fatal accident. While our health and safety has long been at a good level, we will need to improve further. To that end, we are making budgets available in 2016 for investments and improvements where needed.