Sustainabilty @ Emmi - Future of Responsible Management

Sustainabilty @ Emmi in
Switzerland
Chur, October 31st 2014 / Max Peter
Content
About Emmi
Sustainability @ Emmi
Sustainability issues along the Emmi Value /
Supply Chain
Some thoughts
Sustainability @ Emmi
Seite 2
Emmi at a glance
Sales 2013
§ CHF 3,298 million (56% Switzerland)
Sales first half-year 2014
§ CHF 1,625 million
Net profit margin 2013
§ 3.0%
Employees (full-time equivalents)
§ 5,266 (as per 30 June 2014)
Volume of milk processed in 2013
§ 1,465 (2012: 1,220 million kg)
Sustainability @ Emmi
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Product portfolio
Fresh products
25 % (CHF 426 million)
Dairy products
31 % (CHF 493 million)
Other products/services
5 % (CHF 65 million)
Powder/concentrates
3 % (CHF 58 million)
Cheese
31 % (CHF 490 million)
Fresh cheese
5 % (CHF 93 million)
Group net sales in the first half
of 2014: CHF 1,625 million
Sustainability @ Emmi
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House of Emmi Brands
Emmi Position
Statement
Where milk is turned into
moments of pleasure
One Word Equity
Emmi
One Word Equity
Brands
Moments of Pleasure
Swiss original
Aged to
perfection
Inspiration
Wellbeing
Local jewels
Product Brands
Sustainability @ Emmi
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Key production sites in Switzerland
Suhr
Frenkendorf
(Milk, cream, butter)
(Cheese, dairy and fresh
products)
Kaltbach
(Cow’s and goat’s milk
cheese)
Emmen
(Fresh products and cheese)
Bischofszell
(Organic dairy and fresh
products)
Dagmersellen
Landquart
(Mozzarella, powdered milk)
(Raclette cheese)
Moudon
(Cheese)
Sustainability @ Emmi
Kirchberg
Ostermundigen
Langnau
Bever
(Konfektionierung Käse,
Export)
(Fresh products and
ice cream)
(Fondue and processed
cheese)
(Cheese, dairy and fresh
products)
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Key production sites outside Switzerland
USA: Platteville
Emmi Roth USA
USA: Monroe
Emmi Roth USA
France: Avignon
Emmi Ambrosi
Austria: Nüziders
Ger: Münchehofe, Dechow, Italy: Ramuscello
Gläserne Molkerei
Venchiaredo
USA: Arcata
Cypress Grove Chèvre
Italy: Gattico
Mexico:
Mexideli 2000
Italy:
Rancio Valcuvia
A-27
USA: Penn Yan
Emmi Penn Yan
Sustainability @ Emmi
Chile: Pitrufquén
Surlat Industrial (Kaiku)
Chile: Loncoche
Chilesur (Kaiku)
Spain: Pamplona
Làcteos de Navarra
Tunisia: Mahdia
Centrale Laitière
Italy: Pero
Rachelli
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Content
About Emmi
Sustainability @ Emmi
Sustainability issues along the Emmi Value /
Supply Chain
Some thoughts
Sustainability @ Emmi
Seite 8
Emmi has a long tradition in sustainability matters
§ 1990s
Formulation of an environmental policy
§ 1997
The Group's first ISO 14001 environmental certification
(Dagmersellen)
All Emmi locations in Switzerland have since received the
ISO 14001 certification
§ 2005
No genetically modified products
§ 2011
Formulation of a sustainability mission
§ 2011
1st sustainability report
§ 2012
1st sustainability motto of the year
§ 2013
2nd sustainability report
§ 2015
expand sustainability focus on the international business
Sustainability @ Emmi
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Emmi's sustainability mission
"Our future success is based on achieving balance and
sustainability with regard to our economic, social and
environmental goals. In key areas of sustainability, we aim to act as an
international role model within the sector."
Sustainability @ Emmi
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Four strategic directions of impact
Energy and resources
Increase in energy and resource efficiency and substitution of CO2-intensive energy sources
with renewable energies or lower-carbon alternatives.
Milk and ingredients
Use of natural and respectfully produced milk and other ingredients for Emmi brands.
Packaging
Closure of materials cycles.
Employees
Creation of the conditions for family-friendly working models and more…
Sustainability @ Emmi
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Sustainability is part of the corporate policy
Key environmental measures 2008 to 2014 (Switzerland)
1990ies
Environmental organization
1997
Environmental Mgmt
ISO 14001
2005 - Dagmersellen
Change from traditional
energy to bio gaz
2006 - Dagmersellen
Cooling process using
waste water
bis 2008
2006 - Landquart
Cooling process using
waste water
2008 - Ostermundigen
Heat generation from
waste water
2008 - Bischofszell
Solar power thanks to
photovoltaic facility
2008 - Emmen
New woodchip-fired
steam plant
Sustainability @ Emmi
2009
Landquart
Heat recovery using
compressed air
Bever
Solar energy facility for
process water
Ostermundigen
Heat recovery from
waste gas
Ostermundigen
Extraction of energy from
coffee grounds (Caffè Latte)
2010
2011
2012
Sustainability motto 2013
Close material cycles
Dagmersellen
Installation of microgaz turbine
Logistik
Partnership with railCare (Coop)
2013
2014
Moudon
Heat generation with new
cool air compressors
Ostermundigen
Pre-warming of water
with process heat
Ostermundigen
Heat generation with new
cool air compressors
Saignelégier
High-temperature
solar energy facility for
process water
Emmen
Heat generation
using ventilation energy
Suhr
Extraction of infrastructure heat
for use in water heating
Sustainability motto 2014
Intelligent mobility
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CO2 reduction – we have achieved Kyoto protocol
comparison based on operating units forming today’s Emmi group
in absolute values
g / kg processed milk
- 52.5%
35’500
35’752
84.9
40.3
2012
1990
to of CO2
Sustainability @ Emmi
1990
2011
g CO2 /kg processed milk
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How do we think and act?
Sustainability @ Emmi
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principles
§ one of our most important acting principle
§AVOID
§REDUCE
§RECYCLE / CLOSE LOOPS
Sustainability @ Emmi
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Content
About Emmi
Sustainability @ Emmi
Sustainability issues along the Emmi Value /
Supply Chain
Some thoughts
Sustainability @ Emmi
Seite 16
The degree of direct infuence in sustainabilty matters depends upon the
industrial role we have
Source
Make
Deliver
Sale &
Market
Own
Brands
full
full
full
full
Private
label
reduced
Near full
full
Non existent
Third
party
copacking
Reduced / none
Near full
reduced
Non existent
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
DEVELOPMENT à most important step to increase future sustainability
Clear principles in product development:
-
No GMOs (genetically modified organisms)
Less additives
No preservatives
No lysozyme in cheese production (enzyme to prevent late blowing)
Example: Reduction of sugar
examination of existing recipes (e.g. yogurts: -10 to 15 % in 2011)
new recipes with varying degrees of sweetness
alternatives to sugar (stevia, lactose)
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
DEVELOPMENT (products and packaging)
Packaging development – in the search of the right balance
- thinner packaging
- greener packaging material
- but: no negative effect on: taste, shelf life, stability (à secondary packaging), haptics or optics
Example: Reduction of packaging material
joint project of packaging development, production, sales, marketing and
Coop wins Emmi Sustainability Award 2013
- 19 optimisation projects
à annual cost savings: CHF 330’000
à saved material or replaced by greener alternative: 127’500 kilograms
Example: Reduction of packaging complexity
packaging variations in processed cheese from 20 to 2
àless costs
à more flexibility
àless faults
àless losses (due to frequent reconfigurations to machinery)
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
PROCUREMENT à choice of sustainable sources
Clear general terms and conditions of sale for suppliers:
-
GMO-free goods only
proactive information about nanotechnological components
certified Global Food Safety Initiative (GFSI) quality standard
minimal use uf secondary and tertiary packaging materials
recycling of secondary and tertiary packaging materials
guarantee about the compliance with applicable employment legislation and UN Convention on the
Rights of the Child and International Labour Organisation (ILO) at all stages of production and
processing
Example: Coffee from Rainforest
Aliance-certified plantations
Sustainability @ Emmi
Example: Free range eggs in
desserts from Italy
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Sustainability throughout the Emmi value chain
PROCUREMENT
Example: Organic milk
Emmi is the largest processor of organic
milk in Switzerland
largest share of organic Swiss
milk is processed in the
«Biomolkerei Biedermann»
acquisition of the first organic dairy outside
Switzerland: «Gläserne Molkerei»
in Germany (2012)
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
PRODUCTION à MUDA principle saves every type of ressources
§
§
§
§
MUDA à reduce waste
do the right things first time right
increase efficiency & effectiveness
continous improve
Sustainability @ Emmi
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ENVIRONEMENT – Water, energies and waste
Example: Solar power
Biomolkerei Biedermann
Käserei Studer
Lataria Engiadinaisa
(Schweizer Solarpreis 2012)
Saignelégier
(Schweizer Solarpreis 2013)
Example: Energy and compost from coffee
> 100 mio. cups of Emmi
Caffè Latte
Example: Use of process heat
for preheating of brewing water
Brewing process for coffee (Emmi Caffè
Latte and Emmi Pure Swiss Yogurt):
average temperature of 90°C
Preheating to around 70°C by using
process heat
Savings of:
- 2,2 mio kWh of energy
- CHF 110’000
- 110 tonnes of CO2
freshly brewed coffee
1’900 tonnes of coffee
grounds
950’000 m3 of biogas
950 tonns of compost
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
DISTRIBUTION à management of distribution network reduces tokm
- 6‘000 to 8‘000 pallets per day to our customers
- fleet:
-
60 good vehicles owned by Emmi
100 lorries owned by Emmi‘s subsidiaries Baumann Käse, Biomolkerei Biedermann and Emmi Frisch-Service
additional 60 to 90 vehicles from third-parties
8,8 kilometres per year à 200 trips around the world
Example: Lorries with high
average fuel requirement: 29,2 litres of diesel (vs. 30,4 in 2008)
Euro emissions standards
86 % of Emmi’s lorries meet
Euro 5 emissions standard
Example: Cooperation with railCare
deliveries to Coop in Ticino
from road to rail
2014: all Euro 3 lorries replaced
by Euro 6
1’200 pallets per month
700 lorries per year
around 88 tonnes
CO2 reduced
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
SALES & MARKETING à tell the customer the values
Example: Promoting sustainable products together
20th anniversary of Naturaplan
Organic versions of the classic brand cheeses LUZERNER, GALA and Gerber
Example: Emmi makes milk products – not money
Every year, Emmi supports at least 1’000 sport and school camps with products
Sustainability @ Emmi
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Sustainability throughout the Emmi value chain
SALES & MARKETING à labels to impove trust of consumers
Emmi manages more than 20 labels and their respective rules and standards
AHA
Glutenfrei (Gluten-free)
Kosher
SpigaBarrata
Alpinavera
GM-free
Mountain and Alpine Ordinance
SUISSE GARANTIE
AOP / AOC
Halal
Organic
V-Label
Fairtrade / Max Havelaar
IP Suisse / Terra Suisse
Regional products
Wiesenmilch
Rain Forest Alliance
FAIR TRADE
…
Sustainability @ Emmi
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Content
About Emmi
Sustainability @ Emmi
Sustainability issues along the Emmi Value /
Supply Chain
Some thoughts
Sustainability @ Emmi
Seite 27
some thougths
lots of chances along the Value & Supply Chain
§ any search of excellence along supply chain operations leads to mor sustainability
§ first step: search in your direct sphere of influence, then enlarge to the other ends of your supply
chain (next tiers)
§ involve employees to earn low hanging fruits
§ big savings / big impacts need time, endurance and perseverance
§ think in life cycles and closing of possible loops
§ change managerial and operational thinking and behavior to this thinking
§ create the right incentives – as well on politic / economic level as on company level
§ sustainability is not a one-man/women show, neither a pure marketing issue, it should become
part of the enterprise-DNA
§ the best idea is worth nothing, if it doesn’t meets customers
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