Sustainability Report 2010

Transcription

1 Na turall y su s t ainable Sustainability Report 2010

2 GRI C Key data 2010 Suiker Unie's Sustainability Report for 2010 provides an overview of our economic, social and environmental performance. We want to show what progress we have made. For transparency and comparability purposes, we have decided to adopt the Guidelines of the Global Reporting Initiative, the internationally accepted standard for sustainability reporting. With a turnover of EUR 705 million, 2010 was a good year for Suiker Unie. It was attributable principally to additional sales of surplus sugar on account of the higher volumes produced in the 2009/2010 campaign. Since the middle of the 1980s, the sugar yield per hectare has increased by between 40%-50% to a record volume of 14.0 tonnes in Despite the less favourable weather in 2010, the sugar yield was a respectable 12.6 tonnes per hectare. Above all, Suiker Unie defines sustainability as maximising the value of sugar beet by processing residual products. We are studying the potential use of biomass as a raw material for fuel and are investing heavily in it. We are currently building a fermentation unit and a second is planned for We will thus become one of the largest producers of green gas in the Netherlands Financial Suiker Unie total turnover (EUR millions) 705 Investments (EUR millions) % Sick leave in Beet growers in our cooperative tonnes of Sugar produced in 2010 Carbon footprint 480 kg CO 2 equivalent per tonne of sugar 1400 Households receive green electricity from Suiker Unie 77 % Staff satisfaction with the work Ecological Sugar production (x 1,000 tonnes) 911 Of which, cane sugar (x 1,000 tonnes) 38 Carbon footprint (kg CO2 eq/tonne sugar) 480 Energy (MWh/tonne sugar) 975 Groundwater and mains water (m3 x 1000) 220 Green electricity (MWh) 3085 Social Number of employees 757 Number of accidents (leading to absenteeism) 14-42% Energy consumption since km Transport in hectares of Sugar beet in 2010

3 Sustainability policy Sustainable ambitions Suiker Unie wants to be the best in creating sustainable value from all components of the sugar beet for its customers, growers and staff Supply Chain Responsibility Suiker Unie is committed to quality and sustainability throughout the supply chain. From growing the sugar beet to delivering the sugar, we are sensitive to the needs of our stakeholders and work with our partners to optimise the supply chain and its logistics. Climate & Energy In all our operations we seek the right balance between the environmental care and profitability. We take care of natural resources. We are constantly and successfully working on ways to save energy and water, operate more efficiently and reduce emissions. By producing Natural & Health Sugar is an excellent source of energy. It is a natural product made from sugar beet and sugar cane. Together with the Dutch Sugar Foundation (Suikerstichting Nederland), we promote the importance of a healthy and varied diet and an active lifestyle. We also inform the public Social Engagement Our commitment is clearly expressed in the cooperative structure of our business. Its value to society has economic, social and ecological dimensions. Suiker Unie is known as a good employer. We believe in the personal development, health and safety of our employees. Suiker Unie has the ambition of ranking among the leading sugar manufacturers as regards both cost efficiency and sustainability. We nurture a good reputation among stakeholders for our sustainability policy in order to increase social acceptance of a thriving and sustainable sugar industry in the longer term. It is our ambition to enhance the value of the entire supply chain as sustainably as possible. Care for the climate and nature is a precondition for our commercial continuity. We are a socially committed company. Our social commitment begins in our capacity as employer, in the relationship with our staff. To increase sustainability, we attach great value to cooperation, We are involved in social initiatives in both the Netherlands and abroad. green gas from residual through our Van Gilse Our social responsibility is products, we are brand. seen in national and contributing to a better international projects and environment. issues that benefit from our expertise, for example by helping sugar cane growers in Africa. 2 3

4 Contents Naturally Sustainable About this report Company profile Relationships with stakeholders Embedding CSR in the organisation 2010 report rests on four pillars Supply Chain Responsibility Climate & Energy Natural & Health Social Engagement A look to the future GRI index Suiker is 100% natural Suiker Unie will also be a major producer of green gas 43 Staff welfare comes first 52 From customer to supplier 24 Sustainable business is self-explanatory to Suiker Unie 33 State Secretary Henk Bleker on sustainable business with something to say Honest communication about sugar Health soil is the foundation 28 4 Sustainability Report 2010 Suiker Unie 5

5 Foreword Naturally sustainable' The economy, social responsibility and environmental care go hand in hand in sugar production At heart, Suiker Unie has been an advocate of Corporate Social Responsibility for many years. The cooperative and its 10,000 growers take good care of the environment, their land. It is the source of their current and future existence. The eco-nomy, social responsibility and environmental care go hand in hand in our primary process: the production of sugar. And that is the way it should be because only that can guarantee our long-term viability. Everything we invest in the crop, factories and logistics processes is good for our market position and the environment. We fulfil our ambitions in part through our Plant & Planet programme and this Sustainability Report. Sustainability is not an issue for management alone. As a sustainable partner, we put our vision 6 Albert Markusse General Manager, Suiker Unie Sustainability Report 2010 Suiker Unie 7

6 Shaping the biobased economy Biomass fermentation unit under construction in Dinteloord into practice with all our staff. Our stakeholders expect nothing less of us. They specifically ask about our sustainability measures and demand transparency on our performance. Putting our vision of sustainability into practice with all our staff That is why our sustainability ambitions are ordered into themes that will decide the future prosperity of our world, such as population growth, climate change and energy. By safeguarding the continuity of our industry, we are also serving an economic interest. As an employer we are certainly socially responsible. Suiker Unie is a unique business with a social policy to match. This is a deliberate choice. During the campaign we expect a lot from our people and offer them good employment terms. People like working for Suiker Unie. As an employer, too, we are looking to the future with confidence. Consultation on the future of the sugar industry We are aware that the future of the sugar industry will be determined by European policy. Our industry has a unique balance between beet sugar production and cane sugar imports chiefly from the least developed countries (LDC countries). It is a good system. The EU is studying a number of scenarios for the common agricultural policy. Suiker Unie and its parent business, Royal Cosun, regularly participate in agricultural policy talks in The Hague and Brussels. There, too, sustainability is an important topic. I am convinced that demonstrating the industry's sustainability will have a positive impact on the debate in the EU. I am proud of Suiker Unie's place in our industry. We have come through the economic crisis in good shape. Our factories rank among the largest in Europe, the result of a hundred years of hard work, and we will do everything we can to retain our position. We stand out for our efficiency and the integrated supply chain with our growers. Thanks to the sustainable choices we make, we have a leading position in the field. Sustainable choices Above all, Suiker Unie defines sustainability as maximising the value of sugar beet by processing residual products into animal feed, biobased raw materials, etc. Suiker Unie has taken the initiative to study biomass's viability as a fuel and we are investing heavily in it. We are currently building a fermentation unit in Dinteloord and a second unit is planned for Hoogkerk (Vierverlaten) in We will thus become one of the largest producers of green gas in the Netherlands. We are an attractive partner to new parties such as chemical companies that make biochemicals from residuals. An interes-ting project we are working on is AFC Nieuw Prinsenland, an agro & food cluster with 50 hectares for companies and 220 hectares for greenhouse horticulture next to our sugar factory in Dinteloord. It will close the cycle and form a springboard for biobased products in our region, in keeping with our business model of putting sustainability into practice. To this end, our sustainability performance, e.g. our carbon footprint, must be measurable. We want to show that we take sustainability seriously and are making progress. This Sustainability Report, prepared for the first time in accordance with GRI Guidelines, is one way of doing so. Continuous search for improvement We are constantly seeking different and better ways of working. We study the latest techniques to make even smarter use of the beet and are still discovering new sustainable opportunities. We are still discovering sustainable ways to make smarter use of the beet We can already report impressive results in our energy consumption, with a reduction of more than 40% since Together with our parent business, Royal Cosun, we are shouldering our responsibility for a biobased economy. In brief, Suiker Unie is naturally sustainable. Albert Markusse General Manager, Suiker Unie 8 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 9

7 Scope 1 About Our sustainability policy rests on four pillars Performance indicators that reflect our strategy and core activities and our stakeholders' interests this report At the heart of this report are our sustainability policies and the evolving dialogue with our stakeholders. We report on our sustainability activities by reviewing our economic, social and environmental performance. Environmental care and sustainability are becoming more transparent thanks in part to our Plant & Planet sustainability programme. Implementation of ISO 26000, the international standard for corporate social responsibility, will accelerate the process in Suiker Unie has published a sustainability report for many years. We have decided to prepare the annual sustainability report in accordance with the internationally accepted Guidelines of the Global Reporting Initiative (GRI). This report for 2010 discloses only information on Suiker Unie's facilities in the Netherlands, at GRI Application Level C. We have selected GRI indicators that complement our strategy and core activities and that are relevant to our stakeholders. A GRI Index is presented at the back of this report. This report presents the four pillars of our sustainability policy in accordance with the GRI classifications: Supply Chain Responsibility: commercial performance, cooperation and innovation Climate & Energy: energy savings and green energy production, environmental performance and nature management Natural & Health: sugar as a natural product, food safety and public information Social Engagement: our social performance as an employer and our social commitment In comparison with the previous year, we have made a number of changes in the pillars. We have combined Natural & Health and added a new pillar Social Engagement to highlight our role as an employer and our social commitment. This report has been written for our customers, growers, public authorities, staff, the Executive Board, Board and staff of Cosun, and our partners and suppliers. A number of stakeholders also feature in the report to explain their relationship with Suiker Unie. 10 Sustainability Report 2010 Suiker Unie 11

8 24.7 years is the average length of service Maecenas ut odio nulla, vitae volutpat metus. Duis eleifend gravida consectetur. 10,000 people visit our sugar factories Suiker Unie is a socially committed company 12 13

9 Our activities 2 Company Suiker Unie wants to be the best sugar manufacturer in Europe profile In 2010 Suiker Unie produced 873,000 tonnes of beet sugar in the Netherlands and 112,000 tonnes in Anklam (Germany). Suiker Unie's total turnover for the year was EUR 705 million. In addition to beet sugar we produce cane sugar sourced from non-eu countries. We processed 38,000 tonnes of cane sugar in the Netherlands in 2010, equal to 4.2% of our total production. The sugar factories produce sugar during the campaign from mid-september to the end of January. The greater part of production is for domestic consumption in the Netherlands, the remainder is exported to Germany, the United Kingdom, Belgium and Scandinavia. Most is bought by industrial customers for use in foodstuffs such as soft drinks, bread and dairy desserts. We also supply sugar to the retail and foodservice markets. In the supermarket, our granulated sugar, sugar cubes and sticks, soft sugar, sugar candy and syrups are sold under the Van Gilse brand. Every year we process more than 5 million tonnes of sugar beet, producing a range of by-products and residual flows as well as our core product, sugar. They are used in new products or beneficial applications. We produce biogas in methane reactors, for example, by fermenting organic residues in the process water. Suiker Unie's head office is located in Dinteloord, the Netherlands. There are factories to make sugar from sugar beet in Dinteloord and Hoogkerk (Vierverlaten) and speciality factories in Puttershoek and Roosendaal. Suiker Unie has a subsidiary company in north Germany. At the end of 2010, Suiker Unie had a workforce of 757, of whom 143 were employed in Germany. Suiker Unie is a member of Royal Cosun. This international group develops, produces and sells natural foodstuffs and ingredients. Cosun is a cooperative of Dutch sugar beet growers with about 10,000 members who are also the sole shareholders in the group. Cosun was originally founded more than 100 years ago. In 2010, Cosun earned an annual turnover of EUR 1.7 billion and had more than 4,000 employees. 14 Sustainability Report 2010 Suiker Unie 15

10 Interview Business with something to say I think it's excellent that Suiker Unie is taking the initiative to produce green gas from residual products. Henk Bleker, State Secretary for Economic Affairs, Agriculture and Innovation 'I expect entrepreneurs to decide what sustainability challenges they tackle. There's one condition, they have to enter into a dialogue with their environment.' Henk Bleker believes the biobased economy is an enormous opportunity for the Netherlands. As the largest sources of biomass, agriculture and horticulture have a vital role to play. 'I think it's excellent that Suiker Unie is taking the initiative to produce green gas from residual products. Agriculture and horticulture have traditionally struck a balance between earning a living and working sustainably within the limits set by man and nature. Sometimes short-term profits are at odds with long-term sustainability. It's not for the government to say what the right balance is. The balance is clear when the farmer enters into a dialogue with the environment. It could be a talk with a neighbour or with environmental groups or trade associations. That's what I call business with something to say. This industry has the necessary knowledge about importing, producing, refining and processing biomass, such as residual products, and is in a strong position to provide an alternative to oil. This is an opportunity for the agriculture and horticulture sector to innovate and grow. That's why I'm pleased agriculture is no longer seen as only a cause of CO2 emissions but also as part of the solution. The development of the biobased economy is an enormous opportunity for the Netherlands, thanks in part to its strong agro sector The ministry thinks entrepreneurs must work on the production of sustainable energy in the years ahead and that's why we are encouraging them with the grant scheme for sustainable energy production.' Challenges for the future The world is facing major challenges. In 2050 we'll have to provide high quality, healthy and safe food for nine billion people. This means farmers worldwide will have to increase their output. We are promoting sustainable production and productivity throughout the entire agro industry by encouraging both better and higher production at lower cost, with more efficient use of land, water, fertilisers and crop protection agents. Farmers will have to learn to cope with more extreme weather conditions but they can also play a role in limiting climate change. We don't want higher farm production to be at the cost of a further decline in biodiversity. The new European agricultural policy must help us overcome these challenges.' The role of Europe in food safety Europe has achieved a very high rate of selfsufficiency in farm products. European agricultural policy has been extremely important in the evolution from an exporting to an importing trade bloc. Food security remains an onerous responsibility. We've seen in recent years that we have to remain alert. Constantly low prices or wild fluctuations in prices can have major consequences. That's why we need a safety net. At the same time, we have to strengthen competitiveness. And invest in the innovative power of the industry and enhance sustainability, including the maintenance and management of our natural resources.' Sharpening the market focus Food security, climate, energy, water and raw materials are challenges that call for a global response. The distortion of trade caused by the common agricultural policy and its subsidies has been largely rectified. The days of enormous surpluses and dumping on the world market are behind us. The European market and the world market are converging. This will give the European agricultural industry access to the world market but it will also open up the European market to the least developed countries. The EU is currently by far the largest importer of farm products from developing countries. The door has been opened for the least developed countries to integrate into world trade and grow into fully-fledged trading partners. This is strengthening the economic autonomy and purchasing power of the local market. That's one of the reasons we are helping the Dutch and European agricultural industry sharpen its focus on the market. Support for the sustainable sugar industry As well as European agricultural policy, this government is strengthening the position of nine top sectors in the Dutch economy. One of them is the agrifood sector. Sustainability will be an important element in the action plan but it is up to the industry to set the ambitions. With the Minister of Agriculture, Maxime Verhagen, I will do all I can to facilitate this top sector. 16 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 17

11 Our stakeholders 3 Relationships with stakeholders Our main stakeholders are customers, growers, consumers, employees, public authorities, partners and local residents In our stakeholder contacts, sustainability is always on the agenda Suiker Unie regularly consults its stakeholders on issues relating to our core activities. Corporate sustainability is growing in importance. Our main stakeholders are customers, growers, consumers, employees, public authorities, partners and local residents. Suiker Unie carried out a stakeholder analysis in 2010 that we will work out in Suiker Unie enters into a dialogue with all its stakeholders on sustainability. 18 Sustainability Report 2010 Suiker Unie 19

12 Customers Suiker Unie maintains good contacts with its customers. As in previous years, we organised seminars in 2010 to highlight the importance of sharing know-how and exchanging best practices. We also invite customers to attend the Campaign Open Days. In 2010 we welcomed about 200 of them to discuss Corporate Social Responsibility. Customers are increasingly interested about the transparency of our sustainability performance. Together with our customers we are making our operations more sustainable and efficient Our initiatives to produce green gas are enjoying a great deal of interest. Some customers show more than just an interest. They also see opportunities to process their own residuals in our biomass fermentation units. Such cooperation enables us to make our operations even more sustainable and efficient. Growers As shareholders in Cosun, the growers are closely involved in our operations. Eight of them are represented on the Board, which bears final responsibility for the development and implementation of the cooperative's policies. At the annual growers' meetings, we talk to growers in all regions about market developments, growing techniques and crop sustainability. Some 4,000 growers attended the meetings held in the winter of 2010/2011. Throughout the year, Suiker Unie's Agricultural Affairs Service was in close contact with the growers to discuss, for example, crop protection. Cosun also has an active Youth Council to promote formal and informal contacts with younger members of the cooperative. We organised seminars at 40 locations in 2010 for growers participating in Unitip, our crop improvement programme. Learning from each other is the key to Unitip's success. To encourage knowledge sharing, Unitip issues its own annual report to all growers, presenting the knowledge and experience gained from the previous year's beet production. Our members also receive Cosun Magazine six times a year Noot: volgens de website 9 keer per jaar with general findings on the most recent crops and yields. Beet Europe was organised in the Netherlands for the first time in This biennial sugar beet event compares the performance of all sugar beet harvesters in Europe. It is an opportunity for growers, plant breeders and researchers to share know-how with each other. Suiker Unie was the event's main sponsor in Employees Our employees are essential to the future of our business. We are keenly aware of their commitment to our business and monitor their career expectations. Our in-house magazine, Kristalhelder, regular informs our staff of sustainability developments Every three years we carry out a staff satisfaction survey and put the findings to practical use, as described in the section on Social Engagement. The Works Council is closely involved in our organisation and promotes the employees' interests. The Board and the Works Council hold constructive talks six times a year. We are increasingly raising the importance of sustainability among our staff and encouraging them to take their own initiatives. The Sustainability Report meets the growing interest in the subject. Our in-house magazine, Kristalhelder, also regularly informs our staff of developments in sustainability. The sustainability programme is presented to the staff at various internal meetings. Customers are satisfied Guaranteeing the quality of our products and services is very important to us. Suiker Unie has an external partner carry out customer satisfaction surveys every two to three years In 2010, general customer satisfaction in the industry averaged 7.9 (2007: 7.9) on a response rate of 28% (2007: 21%). In total, 230 customers responded, 83% of them were satisfied or very satisfied. Suiker Unie scored highly on reliability ( 96%) and is seen as an expert partner (84%). We are pleased with these scores but want to do even better. That's why we have already improved our complaint management procedures. Learning from each other is at the heart of our study groups and Unitip meetings 20 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 21

13 Public authorities A good relationship with the public authorities is of vital importance to Suiker Unie. We share the same goals by promoting employment, sustainability and the future of the European sugar industry. Suiker Unie has many contacts with public authorities and politicians at local, regional, national and international level. A good relationship with the public authorities is of vital importance to Suiker Unie. We share the same goals At European level, sugar beet growers and manufacturers are represented by the International Confederation of European Beet Growers (CIBE) and the European Committee of Sugar Manufacturers (CEFS) respectively. Partners The Netherlands Institute for Rational Sugar Production (IRS), the Dutch Sugar Foundation (the sugar and nutrition knowledge centre), the Sugar and Nutrition Platform and NGOs such as Bonsucro and Solidaridad are important partners to Suiker Unie. They help us maximise our operational sustainability. We hold regular talks with them to improve and promote cooperation and knowledge-sharing in the supply chain. We also undertake social initiatives together. Consumers Through the consumer service of our Van Gilse brand, we are in close contact with our product users. We give high priority to dealing with complaints correctly. The Dutch Sugar Foundation is responsible for informing consumers of the nutritional aspects of sugar. Local residents Suiker Unie values its good regional relations. Local residents are most aware of our activities during the campaign. They are invited to the Campaign Open Days in Dinteloord and Vierverlaten every year. Other groups are also welcome to visit the factories. They receive a guided tour, are informed about sustainability innovations and other developments and can ask questions about our operations. Local residents are invited to the Campaign Open Days in Dinteloord and Vierverlaten every year There is a great deal of interest in how sugar and its by-products are produced. We are proud of our factories and enjoy showing how we work. We welcomed a total of 10,000 visitors in They were also informed about our Plant & Planet programme. Local residents are also closely involved in the development of AFC Nieuw Prinsenland. 22 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 23

14 Double interview Vegetables and sugar beet, a fantastic combination Ardo will supply Suiker Unie with about 2,800 tonnes of residual products from leaf vegetables, about 80% of the total Teun van der Weg, Suiker Unie, proudly shows Ruud ten Cate of Ardo a photograph of the fermentation unit being built in Dinteloord. Ardo will be the first supplier of biomass. The frozen vegetable producer has been one of Suiker Unie's industrial customers for many years and was seeking an economical and, above all, sustainable solution for its residual flows. Suiker Unie's new fermentation unit is a godsend. 'The nice thing is we'll be a supplier to Suiker Unie as well as a customer. It's a fantastic combination.' Ruud ten Cate, Ardo Ardo is the largest producer of frozen fruit and vegetables in Europe, with 14 production sites in eight countries. One of the factories, located in Zundert in west Brabant, processes and packs leaf vegetables for all the major supermarkets. It uses sugar in sauces, ten Cate explains. One of our sauces is made out of sugar, vinegar, cloves, apple puree and cinnamon and it creates the best red cabbage in the world.' The company processes the vegetables as closely as possible to where they grow the best: bell peppers and aubergines in Spain and Portugal, corn in the south of France, cauliflowers in Belgium and Brittany, leeks, cabbages and spinach in the Netherlands and Belgium. In the past, the company could sell the vegetable residues to farmers as a fertiliser or animal feed. 'The laws became so strict.' says ten Cate, 'that our customers no longer satisfied Good Manufacturing Practices. That avenue proved a dead end.' Ten Cate says he is both the right hand and the left hand of the site manager at Ardo in Zundert and one of his many tasks is the management of residual flows. Logistics is the key Ardo first worked with a large waste processor but it proved to be a very costly exercise. The search for a cheaper solution was not so simple. 'We ended up with a fermentation company in northern Limburg. The distance was a problem. The transport costs were crippling,' says ten Cate. Logistics is very important in biomass flows, you have to be a good match for each other,' van der Weg agrees. The percentage of dry matter is low in this kind of residual flow. Per kilometre, you're not carrying so much biomass. This has also got a sustainability side because fewer kilometres mean fewer CO2 emissions. Win-win situation During Suiker Unie's Campaign Open Days in 2010 the buyer from Ardo and the account manager from Suiker Unie talked about the new fermentation unit Suiker Unie was building. When I heard about it, I immediately thought, let's get round the table,' says ten Cate. To his satisfaction, the talks very quickly, within four months, culminated in an agreement. 'We are going to delver about 2,800 tonnes of residual matter from leaf vegetables. That's about 80% of our residual flows. We're extremely pleased. We charge a small fee for washing the products. Our local vegetable transporter is located in Roosendaal, right in the middle, 30 kilometres from both Zundert and Dinteloord. It really is a win-win situation. Closing the cycle Suiker Unie is also pleased with the agreement, says van der Weg. The benefit to us is that biologically we are not reliant on just one product, sugar beet. I always compare a fermentation unit with a cow, it has to have something different to eat now and again. With other residual flows, we can improve the fermentation result by adding trace elements and micro-ingredients that do not occur in our products. We could intervene chemically but the biological route is more sustainable. Logistics is very important in biomass flows, you have to be a good match for each other Van der Weg is using this first delivery contract with Ardo to learn. One of the goals of Suiker Unie's sustainability policy is to close the cycle and control the entire biological chain ourselves. The fermentation unit is helping us on the way. We don't throw anything away. We use our own residuals and those of others to make green gas. The digestates can be put to good use in agriculture. It is in both our interests to keep the supply chain clean. Access checks will therefore be made to ensure that what comes in satisfies the fermentation unit's biomass criteria in accordance with the grant scheme for sustainable energy production. Starting with a full tank Construction of the unit is on schedule. The tanks will be filled at the beginning of October Production will start in December. Ardo s production season will start in spring Then we can start with a full tank and deliver the first residues of red cabbage and leeks. 24 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 25

15 Governance 4 Embedding CSR in the Sustainability has been firmly rooted in our organisation for many years Sustainable ambitions are reinforced by our Plant & Planet programme and participation in the ISO Championship organisation Plant & Planet Sustainability has been high on Suiker Unie's agenda for many years. To increase awareness of Corporate Social Responsibility internally and set even more challenging ambitions, a CSR steering group was set up at the end of The Research and Development Director is responsible for sustainability and chairs the steering group. All departments are represented on it. In 2009, the steering group took the initiative to launch our Plant & Planet programme. This stimulating communication programme combines all Suiker Unie's sustainability initiatives. The programme was publicised both internally and externally through various media in ISO Championship To embed Corporate Social Responsibility even more firmly in our organisation, preparatory studies were carried out in 2010 for ISO certification. ISO is the new international guideline for corporate sustainability and its implementation. It includes internationally agreed definitions, principles, core themes and procedural steps to integrate CSR. Suiker Unie decided to start implementing the standard in Suiker Unie is one of the businesses selected to participate in the ISO Championship in Organisations with the ambition to be the CSR leaders in their industries will be coached to become ISO Champions. The project will be completed in April 2012 and may culminate in the NPR 9026 self-declaration developed by the Nederlands Normalisatie-instituut (NEN), for the application of ISO Sustainability Report 2010 Suiker Unie 27

16 Harjo Hoiting, arable farmer in Eexterveen, belongs to the generation of young farmers. He is at the beginning of his career as an independent agricultural entrepreneur, he says. He took the farm over from his mother three years ago. 'A farm like this can only be run as a future-proof business if it goes sustainable, particularly from an economic point of view. That is essential.' Sustainable Interview Sustainable farming is essential to the future of my farm Fewer hectares needed for a higher yield and lower environmental impact per kilo of sugar arable farming is necessary for the future of the sugar industry and of the individual farmers. If only because of the rising global demand for food. 'I can certainly see the relationship although the demand for food won't grow so much in Europe. Nevertheless, you have to farm the land as well as you can so that the next generation can pick up the baton. The land doesn t belong to you. I wouldn't go as far as saying "stewardship" but the idea is certainly appealing.' Healthy soil is the foundation A healthy soil is what concerns Hoiting the most. The soil is the foundation. You have to take good care of it. I use as much organic matter and as few crop protection agents as possible. I leave straw stubble on the land and plough it in,' he explains. Biodiversity in the form of crop rotation goes without saying. 'My growing plan is 50% starch potatoes, 25% sugar beet, 25% barley and oats, plus a small area of summer flowers. I rotate the crops over the 53 hectares I farm. Sugar beet are grown on a parcel of land once every four years.' The soil is the foundation. You have to take good care of it As an entrepreneur he keeps a keen eye on his economic interests and closely follows developments on the sugar market. 'I'm not married to a crop. My father started with sugar at the end of the 1970s. Since then, sugar has been a consistent factor in the farm's income.' Higher yield Hoiting enthusiastically talks about the improvement in sugar yields he has achieved in recent years. 'Two years ago our sugar production was 17,500 kg per ha. If I had told my father that 20 years ago, he would have said I was completely mad, that I could never do it. But I have. I need fewer hectares to grow my maximum yield and the environmental impact per kilo of sugar is lower.' He puts this progress down to the improvement in growing techniques and the advice he has received from the Netherlands Institute for Rational Sugar Production (IRS) and Suiker Unie's Agricultural Affairs Service. 'That's what I base my decisions on. Not only on the economic result, but also on other factors. The information is very practical. I always choose a variety that covers the land fairly quickly, for example, so that there are few weeds between the plants.' Hoiting also recognises the benefits of his participation in Unitip, Suiker Unie's crop registration and advice programme. 'Sharing knowledge and hearing how others do it keeps you on your toes. If you only look at what you do on your own farm, you quickly become blind to others. You have to be open and willing to learn from them, that's where the added value lies. Controlled quality Hoiting thinks it is in his interest that Suiker Unie does so much to give consumers an honest picture of sugar. 'If people stopped buying sugar, I'd sell less and earn less. Sugar's good name is certainly important to me. Suiker Unie also looks after our interests in Brussels. It would be nice if the current agricultural policy were continued but I don't think that's realistic. We cannot produce more than the market will take; it's a system that works well. Within it, you can make higher demands on the production method so that you have more control. You can't do that with sugar from Thailand or Brazil. At least our sugar is produced in controlled conditions.' Energy as well as sugar As well as being a farmer, Hoiting is an energy producer. 'I've had solar panels on my roof since 2010 and produce enough green electricity for eight to ten houses. I did it because the sun shines anyway; you can do something with it.' 28 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 29

17 All beet growers associated with Suiker Unie are certified for food safety Sugar is a 100% natural product 30 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 31

18 Our performance report Corporate sustainability is first nature to Suiker Unie rests on four pillars Supply chain responsibility: sustainability and innovation The substantial growth of the world population and increased prosperity are having major consequences for food supply. They will also make more testing demands on the earth's natural resources. An integrated supply chain, landscape protection and cooperation with supply chain partners are paramount By working as efficiently as possible with the land, water, residuals and fuels available to us, we will increase the sustainability of crop growing and production. An integrated supply chain, landscape protection and cooperation with supply chain partners are paramount. Guaranteeing continuity With a healthy business to guarantee continuity, Suiker Unie is exploring innovations that generate added value for the economy, nature and the environment. We keep a close eye on our stakeholders' interests. Growing and processing sugar beet is of great importance to the regional economy. Since Suiker Unie is active in less economically developed regions, we are an important source of employment. With our growers being members of the cooperative, the supply and purchase of sugar beet are guaranteed. We offer our 10,000 growers and their families more certainty about their incomes. We safeguard the continuity of our industry by realising efficiency gains and cost savings. Sustainable innovations in beet growing and processing are accordingly growing in importance. Suiker Unie wants to set the standard for sustainable sugar production, by advising on beet seed varieties, by promoting sustainable arable farming, by working as efficiently and cleanly as possible and by making the most efficient and environmentally-friendly deliveries to our customers. 32 Sustainability Report 2010 Suiker Unie 33

19 Higher yields: Unitip Arable sustainability means growers must farm their land as efficiently as possible. Suiker Unie helps them improve their yields through its Unitip registration system. The goals are to cut costs and improve yields by sharing knowledge. The accurate records kept in Unitip make it possible to analyse yields and compare results to that participating growers gain more insight into their costs and environmental impact. They receive specific advice and tips for each field to improve their beet yields. The data can be benchmarked so that growers can compare their results against those of other growers in the region. We will assess the key figures in 2011 and provide advice in collaboration with students from the HAS University of Applied Sciences in Den Bosch. It will then be even clearer to the growers where they can make improvements Number of participating growers Unitip (%) Target Sustainable arable farming Sustainable soil fertility is a precondition for healthy crops, now and in the future. Our growers are well aware of this. Suiker Unie is making an active contribution through Stichting Veldleeuwerik, an alliance of arable farmers, consultants, buyers, suppliers and manufacturers with the common aim of increasing the sustainability of arable farming. Within Stichting Veldleeuwerik, a group of growers in Flevoland worked with their customers in 2010 on the sustainability of their operations. They are seeking improvements on ten sustainability indicators. Soil quality is the central theme but other indicators, such as production value, biodiversity, nutrients, water, energy, human capital and the local economy, will also be addressed. Every grower will prepare an annual sustainability plan with the assistance of an accredited consultant. The plan will include interaction with the local economy and greater regional involvement, for example through the supply of local products and the participation of local schools. The common pursuit of more sustainable arable farming Stichting Veldleeuwerik has the ambitious goal of working with hundreds of growers in the years ahead. It is also holding talks on the best way to sell sustainable harvests in the future. Less tare soil Suiker Unie wants to reduce the amount of soil attaching to the beet (tare soil) delivered to the factories. The less tare soil, the more efficient the beet processing. A raft of activities by growers, agricultural contractors, Suiker Unie and the Institute for Rational Sugarproduction (IRS) have enjoyed significant success in reducing the amount of tare soil by more than 70% since the beginning of Tare soil Tare soil / sugar (tonne/tonne) Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 35

20 Suiker Unie is working towards a production process that minimises losses and waste Biobased economy 13 Drying and cooling The sugar crystals are dried and cooled. Beet tails & wash water for green gas 1 On the land 2 Lifting and loading 3 Transport Sugar beet is sown in March and April. The harvest starts in September. Trucks transport the sugar beet to the factory. Soil received with the beets is used to raise the level of farmland, roads and dykes Molasses for fermentation and animal feed 6 Washing of the sugar beet The sugar beet is washed thoroughly and any adhering soil is removed. Beet pulp for animal feed 7 Slicing of the sugar beet 8 9 The sugar beet is sliced into thin strips. 14 Production completed The sugar leaves the factory. Juice extraction The sugar is extracted from the cells of the sugar beet. 12 Centrifuging The centrifuges separate the crystal mixture into sugar crystals and syrup. 15 Storage The sugar is stored in sugar silos. 1kg 5 Determination of the sugar content The sugar beet is weighed and the sugar content is determined. Betacal lime fertilizer for agricultural purposes 11 Boiling The thick juice is further concentrated into a thick crystal mixture. Purification of juice Minerals, salts and proteins are extracted from the raw juice. It has now become thin juice with a sugar content of approximately 15%. 16 Industrial clients The sugar is transported to clients in bulk trucks, among others. 17 Van Gilse The sugar is marketed for consumers under the brand name Van Gilse. 4 The factory The processing of the sugar beet starts. 10 Evaporation By evaporating the water (with steam), the thin juice thickens and the sugar content increases to approximately 70%. It has now become thick juice. Investing in innovative, sustainable solutions Maximising the value of sugar beet Suiker Unie is extracting more value from sugar beet. When the beet arrive at the factory, they are washed and organic matter in the process water is converted into biogas in our methane reactors. Sustainable benefits for the company and the environment Tare soil is reused to raise field levels and to build dykes and the like. Other residuals are also reused. Beet pulp is processed into animal feed. Molasses is a feedstock for the fermentation industry. Earth foam (Betacal) is used as a lime fertiliser to improve the alkalinity and structure of soil and close the mineral cycle. We are also exploring avenues to convert beet leaves into green gas. Tare soil Attached tare soil for roads and dykes Molasses For fermentation and yeast production New impulses for the region AFC Nieuw Prinsenland reflects the developments in the biobased economy. The sugar factory delivers biomass. Companies that locate in the new cluster can use the biomass as a feedstock. The chemical industry, for example, can replace the current fossil raw materials with fibres and other residuals. Suiker Unie converts biomass consisting of 100% residual products into sustainable gas of natural gas quality and supplies it to the natural gas network. Betacal Lime fertiliser for Agricultural purposes Efficient production is sustainable Suiker Unie is working towards a production process that minimises losses and waste. Such a process is both efficient and sustainable. We have introduced an integrated Total Productive Main-tenance programme to maximise efficiency at all production sites. The results have been impressive and are very encouraging. Permanent efficiency gains, cost savings and reliability improvements have been achieved in many areas. Suiker Unie is continuing to seek further efficiency gains. In Dinteloord, we have invested in a storage tank for thick juice, an intermediate product. The tank will increase the flexibility of sugar production. It will be used for the first time in the 2011 campaign. Ingredient Sugar as raw material for food Beet tails For green gas Beet pulp Beet pulp for animal feed Direct use Sugar for coffee 36 Sustainability Report 2010 Suiker Unie Sustainability Report 2010 Suiker Unie 37