Sustainability – Implementing and securing

Sustainability is fully integrated into FrieslandCampina’s strategy Our Purpose, Our Plan.

Sustainability Organisation

FrieslandCampina’s Executive Board has final responsibility for FrieslandCampina’s Sustainability policy. The development and coordination of this policy are the responsibility of the Corporate Sustainability department. The Sustainability Council is responsible for assessment and consultation.

Dialogue with stakeholders

In order to chart stakeholder expectations and keep up to date with all current and relevant developments, FrieslandCampina maintains regular contact with its key stakeholders. This concerns member dairy farmers, employees, customers, suppliers, government bodies, financiers, NGOs and society in general. A detailed overview of the stakeholders, discussion topics and actions can be found in the Annual Report 2018.

Sustainable development through partnerships (SDG 17)

FrieslandCampina understands that many sustainable development goals can only be achieved through cooperation with partners. Within the dairy sector, such as the Dairy Sustainability Framework, but also beyond this.

Dairy Sustainability Framework

The Dairy Sustainability Framework (DSF) was launched by the international dairy sector in 2013. It is a methodology for dairy producers and dairy processors to demonstrate the increasing sustainability of the international dairy sector. Dairy companies use a performance ladder to provide insight into the level at which the sustainability policy has been implemented as part of their management system on the basis of the DSF. As a DSF member, FrieslandCampina has committed to integrate the sustainability policy into its business strategy, which will demonstrably result in making the dairy products it produces continuously more sustainable. Apart from the obligation of implementing sustainability, the Company has also committed to take all eleven DFS sustainability themes into consideration. For additional information visit the DSF-website.

Dairy Declaration of Rotterdam

In Rotterdam, during the World Dairy Summit in October 2016, the Dairy Declaration of Rotterdam was signed by the International Dairy Federation and the Food and Agriculture Organisation (FAO). At year-end 2017, milk producers
that collectively are responsible for approximately half of the global milk production had signed this declaration. This declaration recognises the important role of dairy as part of a balanced nutritional diet, as an engine for employment and as a source of income for approximately 1 billion people throughout the world. As such, the declaration supports the role of the dairy sector in achieving the Sustainable Development Goals. FrieslandCampina is a signatory to the Dairy Declaration of Rotterdam. FrieslandCampina’s strategy is fully aligned with the agreements formulated within the international dairy sector.

Employee engagement and involvement of member dairy farmers

FrieslandCampina employees and member dairy farmers are cooperating in the implementation of the Sustainability policy. They play a key role in embedding the Sustainability policy within the organisation. FrieslandCampina is fully committed to employee participation in the implementation of  its purpose – nourishing by nature. FrieslandCampina aims to be and remain an attractive employer.

Innovation

Production processes that use less energy; the development of sustainable packaging; creating insight into solutions for lowering the ecological footprint of the dairy farming sector: employees at the FrieslandCampina Innovation Centre in Wageningen are making a key contribution to creating a sustainable dairy chain. In addition, they work together with business group employees on new products
or product variations: with the best possible match to consumer and customer wishes and needs. The areas of focus in the new Company strategy are key in this regard.

Milkubator

The innovation process will be as much as possible accelerated: this past year a great deal of attention was focused on shortening the lead time required to bring a product to market. The ‘Milkubator’, a platform for working just like a start-up and that makes it possible to bring innovations to market quickly, was introduced in 2017. In the mean time some of the recent innovations have bean included in our product range. All kinds of different ways to accelerate the innovation process are also assessed for investigations that require a longer lead time. ‘Open innovation’ plays an important role in this and involves cooperation with many different knowledge institutes and other organisations. At FrieslandCampina experts are working in the field of nutrition, milk components, process technology, products, packaging, sustainability and dairy farming. Thanks to its knowledge and expertise, FrieslandCampina is able to continuously improve and renew the supply chain. In 2018, FrieslandCampina invested 80 million euros in its research & development activities.

Key innovations 2018

  • Human-like Milk Oligosaccharide, ingredient for infant nutrition
  • Friso Comfort Next, new recipe for infant nutrition
  • Whey Protein Isolate, pure protein ingredient for products such as sports nutrition
  • Dutch Lady/Foremost Protein Plus, milk with a long shelf life and high-quality proteins
  • Landliebe quark

Minimum standards

Statutory requirements form the basis for monitoring quality. Furthermore, additional requirements must be met. Various international standards, such as GMP+, HACCP, ISO 9001, ISO 22000, FSSC 22000, OSHAS 18000 and ISO 14000 have been integrated into Foqus planet. This way FrieslandCampina’s customers, as well as consumers, can rely on the fact that products are safe and of high quality, and that they are produced in responsible ways. Each year FrieslandCampina reviews the Foqus requirements and makes adjustments as necessary, so that the system is always in line with legislation and the latest knowledge and insights.

FrieslandCampina’s Sustainability policy is based on the ISO 26000 guideline. This is an international Sustainability guideline assisting companies and other organisations in implementing sustainability in business processes.

Apart from ISO 26000, all FrieslandCampina production locations have environment and health and safety management systems in place, which comply with the ISO 14001 and OHSAS 18001 requirements. Additionally, FrieslandCampina has developed its own internal standard for this, being the Foqus SHE management system. This standardised risk analysis gives an overview of the environmental and health and safety risks at all locations and all locations annually report on this. The environmental and health and safety management system is guaranteed by means of internal and external audits.

Guidelines for suppliers

FrieslandCampina makes strict demands on suppliers of basic materials, such as fruit concentrates, fruit, sugar, coagulant and many other ingredients used in the products of FrieslandCampina. FrieslandCampina believes that a good and open relationship with its suppliers is essential for obtaining a good overview of the safety risks and how these are monitored in the chain.

Compass

In 2015, FrieslandCampina updated its code for correct business conduct, Compass. This code of conduct and the corresponding policies provide the basic principles for respectful and transparent business behaviour of FrieslandCampina employees and third parties that FrieslandCampina cooperates with. Compliance with this code of conduct and the policies is supported by training, globally appointed confidential officers, an integrity committee and a 24/7 available reporting platform where employees can express their worries about a suspected violation of the code of conduct or policy on a confidential basis.

In 2018, FrieslandCampina once again focused the attention of its employees on Compass, its Code of Conduct for good business behaviour, and the Speak UP procedure. New employees attend an introduction session and must complete mandatory e-learning about Compass and Speak Up.

More information on all the above components , can be found in the Annual Report 2018.