2017 - res.cloudinary.com
TRANSCRIPT
2017Sustainability Report
The safest choice!
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This is Semper 4The Nordic region’s leading baby food and gluten-free food company.
Global analysis 10We work hard to contribute to the UN’s sustainable development goals.
Risk analysis 12We have produced a risk analysis with management proposals based on various areas.
Employees 15Our employees keep the wheels turning.
Suppliers of ingredients 18Behind Semper’s food products are dedicated suppliers of ingredients.
Production 23We produce food for your children – and their grandchildren’s children.
Safe food 36Producing high-quality and safe food is vital.
Anti-corruption 44Countering corruption is one of our key issues.
Semper in society 46We want to be a supportive force.
Stakeholder dialogue 48We continuously pursue an open dialogue with our stakeholders.
Materiality analysis 49Focus on transparency.
GRI Index 50Our report has been produced in accordance with the Global Reporting Initiatives (GRI) reporting standard.
CONTENTS
It is my pleasure to present Semper’s first sustainability report, in which we describe Semper’s sustainability initiatives and how
we want them to develop.
We at Semper have been synonymous with safe, delicious and high-qual-ity food for decades. Our aim is to offer our consumers natural food that places strict requirements on
nutrition and quality; aspects that apply to both baby food and gluten-free products. For this reason, we place great focus on locating the right ingredients and constantly improving our recipes. For example, in 2017 we adjusted all of our porridge and cereal drink recipes in order to improve their nutritional composi-tion and make them even more natural.
In terms of our gluten-free range, we have also focused on improving the recipes by reducing the list of ingredients and using more natural, gluten-free ingredients such as teff, buckwheat and quinoa in the breads we produce. Demand for gluten-free products remains strong, particularly in terms of the crispbread we bake in Korsnäs. We made further investments in the bakery during the year and brought a second production line into operation, thus doubling capacity and exploiting the bakery’s full potential.
Safety is vitalAt Semper, we apply the precautionary principle both when purchasing and evaluating ingredients as well as during the development, production and sale of all our food products. Underpinned by this approach, we always opt for safe over unsafe, since young children are more sensitive to hazardous substances that can be found in food. We also apply this principle when ensuring that the threshold for gluten content is not exceeded in food products for people with coeliac disease.
Food safety is not only important to us – it is vital. Our quality policy forms the basis of our efforts in this area. Additionally, our plant in Götene is certified in line with Food Safety System Certification 22000, ISO 14001 and ISO 5001 to maintain high standards. Our
quality department carries out risk assessments on ingredients and the entire production chain. However, ultimately quality is ensured by our employees taking responsibility for their work. To facilitate and rein-force this aspect at the plant, we installed extra new technical equipment during the year. We also began working towards obtaining ISO 9001 certification for all of our offices in the Nordic region.
At the forefront of researchThere is a general consensus nowadays that food con-sumed early on in life has an effect on health later in life. Semper therefore offers food that is both delicious and nutritional, while also laying the foundations for healthy eating habits. In terms of food for infants and young children, we followed any recommendations issued as well as monitor and conduct research in this area in order to be at the forefront of research.
Sustainable value chainSustainable development across the entire value chain is an area we prioritise – sustainability issues are inte-grated into our day-to-day work and concrete results are to be produced. Our Code of Conduct includes guidelines for responsible and ethical practices that respect both people and the environment. We also employed an environmental specialist responsible for sustainability in 2017 in order to place greater focus on this area. We believe in constant improvement. We are looking forward to pursuing our sustainability initiatives together with our suppliers as well as at our own offices and plants.
In presenting our very first sustainability report, we have chosen to limit ourselves to our Swed-ish production. Happy reading!
Witte van Cappellen,
CEO, Semper AB
Our road ahead
CEO’s statement
We always opt for safe over unsafe...
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This is Semper
We are here!
MILLION
In 2017 we baked some 80 million gluten-free sheets of crispbread in Korsnäs.
Semper was founded in 1939 and is now the Nordic region’s lead-ing baby food and gluten-free food company. Since 2006, Sem-per has formed part of the international food group Hero, which is owned by the Oetker family. The Group is headquartered in Switzerland and has a total of 4,300 employees in 16 countries.
We at Semper have around 200 employees working in Sweden, Norway, Finland and Denmark. Our manufacturing plant for porridge, cereal drinks, infant formula and gluten-free mixes is located in Götene, while our gluten-free crispbread bakery is located in Falun. We develop and produce all of Semper’s baby meals, fruit and vegetable purées as well as in between meals together with Hero’s company based in Spain.
About Semper
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Distribution of sales at
Semper AB:
Sweden
71%Denmark
7%Finland
8%Norway
5%Other
9%= 100 %
This is where we export!
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OUR MARKETSSweden is without question our largest market in the Nordic region. As Semper AB we sell products to our subsidiaries in Finland, Denmark and Norway. Outside the Nordic region we export to countries within the Hero Group, such as the Czech Republic, Russia, the UK, the Netherlands, Switzerland and China. We also export to external companies in countries such as the UK, Germany and Greece.
The supermarket sector is unquestion-ably our largest customer. We also sell to pharmacies, hospitals and other food manufacturers.
FOOD THAT DOES GOODWe at Semper are leading baby food pioneers with extensive expertise in healthy and delicious food. We have developed and produced food for children for generations and thereby gained a high level of confidence from our consumers. Our comprehensive baby food range including cereal drinks, porridge, baby meals and in between meals have led to us becoming the market leader in the Nordic region.
A LEADER IN NUTRITIONWe have been the leader in terms of infant formulas since 1948, when we launched the first industrially pro-duced example, BabySemp. BabySemp was the result of a close collaboration between Semper, nutritional experts and paediatricians. In addition to infant formulas, we also offer special formulas, probiotic drops and milk-free cereal drinks and porridge. Everything is developed based on the needs of each young child. We consider it one of our strengths that we continue to collaborate with doctors, research-ers and nutritional experts today to ensure that our food is as complete and nutritious as possible.
PORRIDGE AND CEREAL DRINKSOur porridge and cereal drinks are produced using grains from selected fields in Sweden together with milk from farms in the vicinity of Götene. Semper has been a market leader in both porridge and cereal drinks for decades. We are constantly updating the recipes and fine-tuning them in line with the latest research and recommendations.
A HEALTHY GLUTEN-FREE LIFERegardless of whether you suffer from coeliac disease or want to stop consuming gluten for other reasons, you should be able to enjoy a healthy gluten-free life. This has led us at Semper to offer a large range of food products that foster a love of food each and every day. We are proud of the high quality maintained by our food, and it is this quality that our customers rely on.
We have been offering gluten-free food since 1991. The current range includes everything from bread, crispbread, pasta and cakes to break-fast cereals and cake and bread mixes. Semper is the clear market leader in the Nordic gluten-free market.
SMART HEALTHY SNACKSIt should be easy and delicious to eat healthily, even when you are out and about. Good´n´Go is our brand for a series of healthy bars and smoothies that are vegan, gluten and lactose-free. Good´n´Go comes in smart food pouch-es and has a short list of ingredients free from preservatives, colourings and added sugar.
Oy Semper Ab (Finland)
Semper AS (Norway)
Semper Denmark ApS
(Denmark)
The Parent Company is Semper AB, whose headquarters are located at the following visitor’s address:
Löfströms allé 5, 172 22 Sundbyberg, Sweden
Semper AB is 100 % owned by Hero España SA
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AOH Nahrungsmittel GmbH & Co.KG
Hero AG
Our company structure
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This is Semper
We develop and supply food products for infants and young children, both of whom consume more food per kg of body weight while also being more sensitive to undesirable substances.
We develop and manufac-ture gluten-free food both for people suffering from coeliac disease and those avoiding foods containing gluten for other reasons.
We stand for trustworthiness – something which is also reflected in all of the food products we offer for sale.
The precautionary principle is always applied The precautionary principle ensures that we at Semper always opt for the safe option over the unsafe option. The precautionary principle is applied because:
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Semper’s values
CHANGE We strive to consistently improve, learn from our
operating environment and keep moving forward.
ENTREPRENEURSHIP We are focused in our search for new approaches and
are quick to produce new products and ideas.
SPEED We are proactive and open to simple,
creative and safe solutions.
EMPOWERMENT We believe in participation and independence,
as well as both assigning and assuming responsibility.
FAMILY We have an open, honest and informal way of working and
we show a great deal of consideration for each other.
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Business model
Our business modelSemper develops, produces and markets
a wide range of baby food, gluten-free food, healthy snacks and special products within the
field of nutrition. Our principle market is the Nordic region, and we are the market leader here in terms of baby food, infant formulas
and gluten-free products.
Our mission
“We delight consumers by conserving the goodness of nature”
Semper and Hero have a shared mission which, together with our values, serves as our guide. ”To delight consumers by conserving the goodness of nature” involves taking advantage of the goodness in nature and fostering a love of food among our consumers. This means that we attach
great importance to locating the best ingredients and devel-oping them into delicious, safe and nutritional food.
In order to fulfil our mission in the long term and protect the goodness of nature for coming generations, we need to operate sustainably. For this reason, our mission also represents a commitment to protect the valuable resources provided by the Earth and to have as little impact as possible.
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Management and organisationSemper has a management group consisting of members for each department at the organisation. The management group draws up strategic issues concerning the organisation’s direction and takes decisions about options relating to various issues. Each Head of Department is responsible for day-to-day operations.
Our sustainability strategyTo clarify and highlight our focus on sustainability issues, we have produced a sustainability strategy. It is to serve as a guide in our day-to-day operations and as part of our aim to consistently improve. The emphasis placed on sustainability initiatives is currently somewhat unevenly distributed across our value chain, which is why it is symbolically valuable for us to have a clear image that shows the way forward and is taken into consideration when prioritising various issues. Our strategy is as follows: Operations are to contribute to sustainable development and sustainability initiatives are to be integrated into operations and yield concrete results. Operating our business in a responsible manner is vital in terms of both short and long-term success.
This means that:
1 We strive to ensure sustainable development throughout our entire value chain.
2 We continuously develop new products in a sustainable way using our extensive expertise in order to improve nutritional content and foster confidence among our consumers.
3 Food safety at Semper is not only important but absolutely vital for us.
4 Satisfying our primary stakeholders ensures our long-term survival.
5 We continuously evaluate our sustainability initiatives with the aim of identifying operational areas that require improvement. The environmental policy at the production plant illustrates and focuses on significant environmental parameters that constitute an import-ant part of our sustainability initiatives. Our sustainability strategy has a direct link to our quality policy, which ensures that the various parts of the company find and maintain a consensus. It is also a prerequisite of our ability to develop and improve our sustainability initiatives.
CEO
Management Assistant
HR Director
Communications Manager
CFO/COO/ Legal
Countries
Accounting
Controlling
Planning
Logistics
IT Procurement
QA/QC
NPD
Regulatory
Götene
Korsnäs
CategoriesBaby & Toddler Food
Category DirectorMilks, Brand & HS
Category DirectorGluten Free & OC
Country ManagerSweden
Country ManagerFinland
Country ManagerDenmark & Norway
CategoriesManufacturing
Manager ProductionR&D and
Quality Director
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Semper works hard to contribute to the UN’s sustainable development goals. In order
to make a real difference, we focus on four goals that are clearly linked to our operations:
Zero hunger, Good health and well-being, Responsible
consumption and production and Life on land.
Semper and the global goals
Operating environment analysis
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Semper’s focus areas
Zero hungerAs a food-producing company, it is import-ant to us at Semper to reduce food waste as far as possible. To reduce waste across our own value chain, we collaborate with Matsmart and Stock-holms Stadsmission, among others.
Good health & Well-beingWe at Semper follow research and recom-mendations within the fields of nutrition and ingredients for infants and young children. We also drive research into nutrition forward by way of clinical studies. In early 2017, we
Life on landTo promote a healthy ecosystem and protect biodiversity, we have reviewed our use of palm oil. Palm oil is used in certain foods we produce, such as infant formulas. This is partially due to the fact that palm oil is rich in a special fatty acid that is also found in breast milk. The palm oil we use in the infant formulas is segregated and RSPO-certified.
Reliable consumption & productionOur mission is to delight consumers by conserving the goodness of nature. A fundamental aspect of completing our mission is the transition to more sustainable production. Our aim is for our
In 2015, the UN adopted the sustainable development goals at a summit in New York. By signing up to these 17 sustainable development goals, world leaders have committed to achieving fantastic goals by 2030: ending extreme poverty, reducing inequalities and injustices across the globe, promoting peace and justice and solving the climate crisis*. We contribute to many of the goals and interim goals by way of our sustainability initiatives. We go into more detail about these here.
launched the project “Children’s right to good health” (Barns rätt till god hälsa) together with Save the Children. As part of this collabo-ration, Semper is work-ing actively to inform and give talks about nutrition and children’s health. Semper follows research in the area of coeliac disease and gluten-free foods in order to keep up-to-date. We also support research projects relat-ed to gluten-free foods.
operations to con-tribute to sustainable development and the sustainability initiatives to be integrated into operations and yield concrete results. Within production, for example, we pursue consistent efforts to reduce our energy consumption.
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*Source: globalgoals.org
Risk analysis
Risk analysis 2017We have produced a risk analysis with the following
management proposals based on various areas.
AREA
ENVIRONMENT
RISK
Greenhouse gas emissionsThe risks linked to greenhouse gases include climate change, which has an impact on every aspect of society. In line with a growing awareness among consumers of sustainably produced food, it could also represent a risk for Semper if we are unable to adapt to consumers’ demands and require-ments.
Quality of baby foodA basic prerequisite of Semper’s oper-ations is access to baby food-quality ingredients, that is, quality laid down by legislation regarding packaged foods intended for infants and young children aged 0-3. A shortage of baby food-quality ingredients represents a risk for us.
Shortage of ingredientsThe risks caused by extreme or un-favourable weather conditions can include flooding and droughts, both of which often have a major impact on agriculture and harvests. For Semper, this could lead to a change in access to ingredients due to a failed harvest.
Packaging materialsNew consumption patterns due to increased awareness of packaging ma-terials could represent a risk for Semper if we are unable to meet consumer’s requirements for sustainable materials.
RISK MANAGEMENT
• The climate debate is a current social issue that will likely result in stricter requirements on the part of both custom-ers and authorities. For this reason, Semper is working to reduce its greenhouse gas emissions across the entire value chain. To render our environmental initiatives more efficient and reduce our impact on the climate, we are up-to-date in terms of new technology and climate-friendly solutions. • We work continuously on the area of transport optimisa-tion to reduce transportation and thereby also greenhouse gas emissions. • In addition to this, we also have an Environmental Engineer working in production and a Sustainability Manager for the entire Semper organisation.
• For Semper, the most important aspect when choos-ing a supplier is that they are able to deliver the quality we require. All suppliers must therefore sign a document guaranteeing this. To ensure that we supply the right level of quality in our baby food, we also require the supplier to hold a COA (Certificate of Authenticity). We carry out random inspections of our suppliers.
• Planning has begun within the Hero Group for a structural reorganisation in the area of supply with the aim of improv-ing access to baby food-quality ingredients.
• Semper follows developments within the area of contami-nants, that is, undesirable substances found in our soils and the pesticides used within agriculture.
• To safeguard Semper’s access to ingredients, our suppli-ers consistently monitor weather forecasts. In the event of changes to weather conditions or cultivation patterns, they are then able to predict potential shortages of ingredients. If an actual shortage does occur, Semper is prepared for the event that a recipe needs to be reworked. We also monitor price trends for various ingredients to obtain an early indi-cation of access to ingredients generally.
• Semper has begun efforts to update and monitor develop-ments of sustainable packaging materials more actively. In autumn 2018, we will systematically review current packag-ing materials from a sustainability perspective and investi-gate improvement measures.
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AREA
SOCIAL ISSUES & EMPLOYEES
HUMAN RIGHTS
ANTI-CORRUPTION
RISK
Work environmentThe risk is of discomfort and poor health at work.
RecallsIf a product does not fulfil our quality requirements and needs to be recalled, this presents a risk.
Social mediaThere is a risk that incorrect information is distributed rapidly.
Child labourIt is a fundamental requirement for Semper that our suppliers’ operations are based on ethical business practices. All suppliers must guarantee that they do not employ child labour.
Discrimination & victimisationThe risk that any individual within Semper’s operational area is exposed to discrimination or victimisation and then suffers due to improper treatment.
Opportunity for union affiliationThe risk that union affiliation is hindered.
Bribery and corruptionThe risk of unethical and improper business transactions and competition being hindered.
RISK MANAGEMENT
• Semper’s ambition is to preventively ensure that all em-ployees enjoy a positive work environment. Semper carries out regular employee surveys with the aim of identifying preferences and shortcomings in the work environment. We also have policies within particular areas – such as anti-dis-crimination – in order to clarify the company’s guidelines.
• Currently, issues such as stress and health are handled by way of employee appraisals, access to occupational health-care, wellness contributions and free medical care. In addition, Semper offers massages to all employees at the head office.
• To eliminate injuries within production, the Production Manager holds a morning meeting with employees every day to follow up previous day of production.
• Specific requirements placed on our suppliers• Contingency plan• Recall plan
We have an established consumer point of contact to ensure all consumers are able to reach us. Contact channels have also been established for customers, healthcare and the media.
• Media and operating environment monitoring to quickly identify potential crisis issues.• Established crisis communication plan• Information on the website and social media
• To ensure that our suppliers assume their ethical respon-sibility, they are encouraged to join Sedex if they have not already done so. In addition to this, they are requested to sign Semper’s Code of Conduct which specifies that suppli-ers who employ child labour, or are suspected of employing child labour, are not permitted to enter into any agreements with us. To guarantee a trustworthy selection of suppliers more simply, Semper has opted to primarily contract the services of Swedish and European suppliers.
• Semper has a zero-tolerance approach to the violation of human rights and victimisation. It is just as important to us that our suppliers respect internationally recognised human rights. Semper has produced a policy document to clearly demon-strate the ethos of the company. Furthermore, we have pro-cedures in place to prevent and manage potential incidents.We send out an employee survey every other year in which this is one of the issues identified.
• By requesting that suppliers join Sedex and sign Semper’s Code of Conduct, we are working to eliminate this risk.
• Semper’s aim is to have an open corporate culture that reduces the risk of bribery. There are policies, clear regula-tions and guidelines in place for both Semper and the Group in general to reduce the risk of corruption. Suppliers are re-quested to join Sedex and sign Semper’s Code of Conduct, in which these areas are also highlighted.
• Anti-corruption policy • Authorisation rules• Legislation is to be adhered to• Issue-based training for employees
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Our core values
Our employees
Our employees keep the wheels
turning.
Page 15.
Safe food
Food safety, quality and
nutrition at our core.
Page 36.
Anti-corruption
We comply with rules governing business ethics
and combat corruption.
Page 44.
Our production
A focus on quality and sustainability.
Page 23.
Our suppliers of ingredients
Behind each ingredient is a committed
supplier.
Page 18.
You can read about Semper’s five key areas in this sustainability report: our employees, our suppliers of ingredients, our
production, safe food and anti-corruption. These are important parts of Semper’s value chain and contain issues that we want to tackle. Here you can obtain an insight into everything from how
we take responsibility for the environment to how we lay the foundations for healthy food for the very youngest.
Our major concerns
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CHAPTER 1
Our employees
Our employees keep the wheels turning.
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Employees
Every other year Semper carries out an employee survey via which we try to find out what our employees think about management and how they
are feeling at work. The 2017 employee survey, for example, showed that there was a strong awareness of our strategy at Semper, which is an area we have worked on proactively since 2015. The survey also showed that Semper is a company with highly committed employees who are proud to work at Semper and would recommend us as an employer. In terms of management, employees would like more coaching and feedback from their line managers. Using this information as a basis, we will arrange a 6-day man-agement programme in 2018 for 12 of Semper’s managers.
One day each year we arrange My Sem-per Day, whereby all employees gather at the head office to listen to lectures, par-ticipate in discussions and jointly pro-pose improvements to both the company and its operations. The theme for 2017 was sustainable development. This year, employees worked on various future sce-narios and had the opportunity to share their thoughts about how the sustain-ability initiatives should continue. In Götene, all employees are invited to an
annual kick-off day, at which we review the company’s strategy and future plan and discuss current issues. Of course, we base our staff initiatives on work environment legislation and the Labour Code. Another cornerstone is our Code of Conduct, which covers im-portant issues such as employee safety, the right to equal opportunities and union affiliation. We also have a number of important policies within the area of staffing, for example policies regarding work adjustments and rehabilitation, victimisation and alcohol and drugs.
To ensure employees are aware of Semper’s staff policy, there is a staff and work environment handbook that is available to all.
At Semper, we work to proactively eliminate accidents, injuries and sick-ness. This applies to everything from heavier production work to ergonomic issues in the office environments.
We have a thorough approach to safety at Semper. To continuously improve safety in production, safety inspections are carried out at the plants. The entire production team is involved in safety committee meetings to help identify areas for improvement, while safety is always the first item on the agenda at
management and planning meetings at the plants.
However, creating a safe and inspiring work environment is of course about more than just this. The aim is for our employees to enjoy coming to work because we care about their well-being. As an employer, we are aware that there can be pitfalls, for example unreasonable performance requirements or unsatis-factory work environments, which can lead to stress and dissatisfaction. We are highly ambitious when it comes to our employees’ well-being and there-fore do our best to avoid such pitfalls. To strengthen our internal skills in the area of the work environment, the safety representative continuously undergoes what is known as “Better Work Environ-ment” (Bättre Arbetsmiljö) training.
Semper’s Code of Conduct is based on the Swedish Discrimination Act. Semper’s policy and management plan tackling victimisation specifies that we do not tolerate any actions that lead to the isolation of individual employees or groups from the workplace community or to victimisation and/or disrespect. All of our employees are responsible for actively working to ensure a positive work climate.
Employees – our most important resourceEach day, Semper’s 242 employees keep the
wheels turning in Götene, Korsnäs, Sundbyberg and the rest of the Nordic region. Our committed
employees are proud to work at Semper.
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collective agreement employment
All employees of Semper AB are employed under
collective labour agreements.
100%
Accidents in 2017• Korsnäs had
4 accidents• Götene had
8 accidents
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Where Semper’s 242 employees are located:
122
Who are Semper AB’s employees?
213 employees in total
Men
Women
91
SUN
DB
YB
ERG
15
105
NO
RW
AY
DEN
MA
RK
GÖ
TEN
E
25
KO
RSN
ÄS
123
Full-time employees
Men Women
100
7
Part-time employees
12
At Semper, focus is placed on creating a safe and inspiring work environment for its employees.
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12
FIN
LAN
D
Refers to Semper as a whole
Sick leave, 2017Götene, 2017
Total sick leave, white collar employees 2.5%Total sick leave, blue collar employees 4.1%
Korsnäs, 2017Total sick leave, blue collar employees 5.6%Total sick leave, white collar employees 0.0%
The year in figuresAt Semper, we monitor a number of metrics linked to our employees, including sick leave, accidents, staff turnover, production hours worked and the completion rate of employee appraisals. Two performance indicators in this area are shown to the side: sick leave and accidents. Only refers to Semper AB
Cereal drink, porridge, gluten-free crispbreads – behind all
of Semper’s food products are our committed suppliers of
ingredients with their passion for food. We strive to ensure that
both people and the environment are respected throughout our
entire supply chain.
CHAPTER 2
Our suppliers of ingredients
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For us, it is important for everyone to help ensure that our food products are handled properly and that our subcontractors consciously work on environ-
mental issues. We at Semper have a solid basis from which to work with our suppliers. As part of the Hero Group, Semper is a member of Sedex, non-profit membership organisation that works to strengthen responsible business in global value chains. Sedex produces guidelines for ethical business in four areas: labour rights, health & safety, the environment and business ethics. Semper requires new suppliers to join Sedex if they have not already done so. We also accept a supplier being a member of a similar organisation. The Hero Group follows up its suppliers’ status in Sedex on a monthly basis.
New suppliersNew suppliers must also confirm adherence to the Hero Group’s (and thus Semper’s) Code of Conduct. The Code of Conduct covers issues such as human rights, child labour, forced labour and the environ-ment. The Hero Group carries out annual follow-ups of the proportion of suppliers who have confirmed their adherence to the Code. The idea behind the Code and Sedex’s guidelines is that they should be conveyed along the supply chain, that is, our suppliers convey them to their suppliers. In doing so, we want to reach everyone along our entire supply chain.
Proximity to producersA large amount of the ingredients Semper purchases come from Swedish producers. We consider this a positive thing, as it reduces our environmental footprint. Such products include our cereals (oats, wheat and rye), our milk and our rapeseed oil. Such proximity to producers makes it easier to counteract a lack of respect for people and the environment along our supply chain. Other ingredients used at Götene and Korsnäs may originally come from countries outside Europe, but they are purchased from suppliers within Eu-rope. This means that we often have close contact with suppliers, thus enabling us to easily raise questions where necessary.
Supplier checks When we launch a collaboration with a new supplier, we plan a visit to that sup-plier. During this visit, we form a view as to how the supplier is performing in areas such as the environment and working conditions. Similar supplier checks are also carried out with existing suppliers. We decide on an annual basis which suppliers will receive a visit. In 2017, we focused on visits to our gluten-free suppliers. In 2018, our aim is to make visits to 95% of our strategic suppliers, at which we consider it valuable to inform them about our requirements and follow up on how food safety and traceability have been improved. If we see signs of an existing supplier lacking in any area, the follow-up work will depend on the extent of the deviation.
In 2017At the end of 2017, the proportion of suppliers having joined Sedex amounted to 93%. In 2018, Semper will work to ensure that this proportion of Sedex-af-filiated suppliers increases and that our major suppliers become SMETA-certified (Sedex Members Ethical Trade Audit Certification). By the end of 2017, the number of suppliers who had confirmed in writing that they adhere to our Code of Conduct amounted to 49%. This low figure is due to the fact that suppliers who sent in their own Code of Conduct instead of confirming adherence to ours have not been counted, even if their Code of Conduct proved to be equally acceptable. Over the coming years, our administrative procedures surrounding this follow-up work will be reviewed.
Cereals and milk originating
from Sweden
Fruit, for example apples, pears and strawberries from European countries.
Sunflower oil from EU countries
Rapeseed oil from Sweden
No deviations from Sedex’s guidelines or Semper’s Code of Conduct were detected among our suppliers in 2017.
The ingredients Semper purchases consist primarily of:
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Our suppliers of ingredients
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In 2017, we at Semper worked to ensure that RSPO-certified and segregated palm oil was used along our supply chain. RSPO is an acronym of Roundtable on Sustainable Palm Oil, a regulation ensuring reasonable working conditions, fewer social conflicts and the protection of valuable forests. In accordance with the RSPO, no new plantations may be laid in remaining areas of untouched rainforest and other important ecosys-tems. Segregated palm oil means that ingredient has been particularly carefully managed by selected plantations.
We already know that over 95% of the palm oil purchased by Semper is RSPO-certified. We have not collected responses from all of our suppliers yet, but our hope is that the actual figure is 100%.
A policy governing palm oil was produced in 2017.
93% OF SEMPER’S SUPPLIERS ARE MEMBERS OF SEDEX.
Environmental checks among suppliersOver the past few years, we at Semper have become more active in our efforts relating to our environ-mental impact. As this issue becomes increasingly significant, attention is also turning to our suppliers of ingredients. The environmental section of Semper’s Code of Conduct is based on the principles of the UN Global Compact. The Code of Conduct – which our suppliers must sign – specifies the following about our environmental initiatives:
ENVIRONMENT”We proactively undertake initiatives to promote environmental responsibility and encourage development and diffusion of environmentally friendly technologies. Thereby, we specifically address our energy consumption with its implied Green House Gas footprint, water consumption, waste wa-ter, and environmental impact of packaging.”
Many of our suppliers also have their own, well-devel-oped systems to tackle various environmental issues. Semper’s active efforts relating to the environmental requirements placed on our suppliers of ingredients are still fairly new, and there is much left to do. Moving forward, we will more carefully review potential suppliers’ environmental initiatives before entering into a collaboration.
The battle against child labour
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Our suppliers of ingredients
22
HUMAN RIGHTS
& CHILD LABOUR
A question of respect
It is important for our suppliers to combat
child labour. Human rights violations have no place
at Semper.
In 2017, Semper did not have any reported cases of human rights violations.
Human rights are an important factor when Semper chooses its suppliers. If no focus were to be placed on this area, there would be a risk that people working with the ingredients for our products could be discriminated against, exposed to unjust working conditions or suffer from poor health.
In addition to Sedex’s guidelines, Semper’s position on human rights is based on the principles of the UN Global Compact (UNGC) concerning human rights, as well as the conven-tions of the International Labour Organization (ILO). These principles are communicated to suppliers via our Code of Conduct.
Human rights in the Code of Conduct
The following principles are contained within our Code of Conduct, which should also be followed by our suppliers in relation to their employees:
DISCRIMINATION Semper does not discriminate on the basis of gender, transgender identity or expression, ethnic background, religion or other religious affiliation, physical impair-ment, sexual orientation or age. Semper offers employment in a non-dis-criminatory manner that is solely based on skills and competence.
FORCED LABOUR OR FORCED DUTIESSemper entirely rejects all forms of forced labour or forced duties.
EMPLOYEE SAFETYOur employees are our most important asset. For this reason, Semper works proactively to eliminate work-related accidents, injuries and sickness. By accepting mutual responsibility for working in a safe manner, we can continue to reduce injuries and sickness.
UNION AFFILIATIONAll of Semper’s employ-ees have the right to union affiliation.
CHILDREN have al-ways been
at the core of Semper’s operations, and their health and well-being are issues close to our heart. For this reason, it is extremely important to us to help ensure that child labour is reduced across the globe. Our Code of Conduct conveys the principles of the UN Global Compact against child labour. The Code of Conduct also refers to the Convention concerning Minimum Age for Admission to Employment – ILO’s Convention 138 – and to the Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour – ILO’s Convention 182. We were not aware of any cases of child labour in Semper’s supply chain in 2017.
CHAPTER 3
Production
We produce food for your children – and their
grandchildren’s children.
It is important to us at Semper to be part of envi-ronmentally sustainable developments, both
in Sweden and globally. It is more than important – it is a fundamental condition of our continued ability to operate. This is why we work continuous-ly to make our operations more efficient in a range of environmentally-related areas. For example, we monitor our energy and water consumption.
Semper’s environmental initiatives are based on en-vironmental legislation, the Code of Conduct and Sedex’s guidelines for environmental issues. Our quality policy was updated in 2017 to include envi-ronmental and sustainable development. We also
produced a new sustainability strategy during the year, which will drive our overall efforts forward. Semper’s production plant in Götene has its own environmental policy that will be updated over the course of 2018.
2017 was also a year in which Semper invested in internal skills in the area of environmental and sus-tainable development. We recruited a Sustainabili-ty Manager to manage all Semper companies. In ad-dition, we enhanced our environmental initiatives at the production plant in Götene by recruiting an environmental engineer responsible for monitor-ing and developing environmental issues there.
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Production
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Collaboration with Stockholms StadsmissionWastage can also occur at our ware-house. If products are not able to be sent from our warehouse in Örebro with a margin deemed acceptable in terms of its best-before date by our customers, we must act immediately. In these cases, we are able to sell the food products to customers with other best-before requirements, for example Matsmart, whose business sells products with short dates. In December 2016, we also began a pilot collaboration with Stockholms Stadsmission. This involves us providing food that we are unable to sell to their Matcentralen business, and our trans-port partner DHL provides the trans-portation for them. During spring 2017, we produced an agreement concerning continued collaboration with Stockhol-ms Stadsmission and Matcentralen. We are seeking other similar collaborations.
Proactive effortsProactive efforts are Semper’s best way to
avoid unnecessary waste. By way of an im-proved production management system and forecasting tools, our waste levels can be kept down. We therefore decided in 2017 to adopt a new approach to our new launches. They are now based on larger market surveys than before, which improves our assessment of the pace of sales in stores. This is good for both the environment and Semper’s finances.
Over the past year, we have also produced packaging that can be launched in sever-al of Semper’s markets instead of having packaging unique to each country. This involves using several different languag-es on each package, thus offering greater flexibility of sales and less wastage.
The next stepsIn 2018, Semper’s targets relating to production will be reviewed with a view to the future. At the same time, we will examine whether we can improve the procedures surrounding sales and pro-duction forecasts.
How we reduce wasteToday, a third of all food produced globally is thrown away.* This is a waste of both ingredients and energy and creates a large amount
of unnecessary refuse. At Semper, we are proactive in terms of reducing our burden on the environment and resource wastage.
Wastage occurs through-out the entire food industry’s value chain, meaning all food production companies
have some form of wastage. At Semper, we are attempting to reduce our waste in several ways and we put particular effort into combatting having to scrap products or ingredients. This is important work in line with Semper’s sustainability strategy.
Nothing is scrappedWastage can occur as part of production, particularly when commencing and completing a manufacturing cycle. The material produced at this point does not offer the absolute quality required for the food product to proceed along the chain to be packaged. Despite this, currently no waste is scrapped from Semper’s produc-tion plants, which is something we are proud of. It is possible thanks to the fact that the plant in Götene and the bakery in Korsnäs collaborate with a company that recycles material from our operations.
Despite this, currently no waste is scrapped from Semper’s production plants, which is something we are proud of.
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*Source relating to waste: Livsmedelsverket, Jordbruksverket, Naturvårdsverket (2015), Slutrapport – Regeringsuppdrag för minskat matsvinn 2013-2015. www.livsmedelsverket.se/globalassets/matvanor-halsa-miljo/miljo/matsvinn/slutrapport-matsvinn_160321.pdf
Production
Our production plant in Götene accounts for the lion’s share of Semper’s refuse, which includes cardboard and plastic, for example. We currently have a shared refuse
collection agreement with Arla Foods for the plant in Götene, as our plant is located in the same building as Arla’s. Our environmental policy for Götene specifies that Semper is to consistently improve its environmental considerations in offices and premises by way of energy-efficient equipment, a smart choice of materials and waste separation systems, for example. We have a well-developed waste management system at Götene – everything from plastic and combustible products to cardboard and metal are separated.
Avoid discardingThe Götene plant was built in the 1940s and parts of the old machinery remain even today. A purge of old equipment was launched in 2017 and in 2018 we will replace the major spray tower in the plant with a new and more energy-efficient version. This will involve large amounts of equipment in stainless steel, cop-per, cast iron, aluminium and similar materials being removed from the plant – except the old spray tower with accompanying equipment weighs 40 tonnes. In order to take responsibility for the environment, this material will obviously not be handled as refuse but processed by a metal recycling company.
At the bakeryWe do not have the same type of material refuse at our bakery in Korsnäs as in Götene – and not even close to the same amounts. We separate cardboard here, which is then collected by the municipality. In 2017 we were in dialogue with them about also obtaining a compost where all organic waste can be disposed of. Approval was given during the year and the compost is now in place in Korsnäs. The munici-pality will again be responsible for emptying it.
Waste separation is equally important at the of-fice in Sundbyberg, which is why we separate paper, plastic, metal and glass. We also have a compost.
A glimpse inside the garbage binAs a manufacturing company, it is important for Semper to take responsibility for our refuse – whether it is paper packaging or 40 tonnes of rust-resistant steel from a spray tower that needs replacing.
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27
Production
Smarter energy consumptionBy making our energy consumption more efficient, Semper saves natural resources while cutting down our costs, thereby making it sustainable in two respects.
Where the energy goes
The greatest proportion of Semper’s energy
consumption is caused by our two production
plants. The plant in Götene is the most de-manding of all – energy
is the second-largest cost after salaries here.
70%70% of the energy
purchased by the plant in Götene consists of steam from Götene pellet-fired plant and 30% consists
of electricity. The steam is used in the
drying process of our products. The electricity is primarily used in the electric motors of our heat fans and pumps.
100% At Korsnäs, electricity
accounts for 100% of the energy we purchase.
Energy consumption and the choice of energy sources are both important issues for companies such as Semper. The extensive use of fuels globally,
and particularly fossil fuels, has damaging effects on the climate and the environ-ment. We do our best to contribute as little as possible to this.
Continuous improvementsOur environmental policy specifies that Semper is to supply food produced with the aim of minimising the burden on the surrounding environment, and that we should continuously improve our envi-ronmental considerations by way of ener-gy-efficient equipment, for example. Our sustainability strategy and quality policy also touch on the issue of energy, and with support from these documents we pursue continuous efforts to reduce our energy consumptions. We implemented the following measures in 2017:
1 We relaid the heating system for the spray tower at Götene, where we dry
milk. The pre-heating system of the tower previously operated on the same heating system as the entire property, which meant that we were not able to switch off the building’s heating when it was warm outside. There are now separate systems for the tower and the property, meaning we are better able to regulate the build-ing’s heating and even entirely shut it off during the summer, thus saving energy.
2 To obtain better effects and reduced energy consumption, we replaced our
air heat exchanger old in the spray tower with more modern and energy-efficient versions.
3 We commenced the replacement of all fluorescent strip lighting with LED
lighting at Götene. This replacement will continue in 2018.
4 We implemented a new system to identify energy losses at Götene. We
now measure the production and idle times of the machinery, thus attempting to minimise energy uptake.
5 Improvements were also made at Korsnäs. In 2017, we redeveloped the
plant and doubled its capacity. As part of this redevelopment, we replaced our oil-fired boiler with an electric boiler. Converting to an electric boiler affords a range of environmental advantages, including the opportunity to opt for renewable energy sources.
More improvements are expected in the future. In 2018, our largest spray tower at Götene will be replaced. This is a major investment that entails significant energy saving for us. We estimate that the new tower will double our capacity compared with the current tower.
We will also examine the opportunity to recycle the energy produced by steam from the ovens at the Korsnäs bakery in 2018; the idea is that it could be used to heat water or the building.
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Consumption of steam at Götene 2015 Bio fuel: 96.3% Oil: 3.7%2016 Biofuel: 94.1 % Oil: 5.9%2017:Biofuel: 96.4%Oil: 3.6%
To keep energy consumption down at Götene, we recycle energy from heat contained in the heated water. Heat energy is primarily taken from the steam we purchase to use in the dry-ing process. After the 200-degree steam has
heated the equipment that dries our products, it becomes entirely pure, 80-degree water. Instead of sending the heated water on to the sewage system, we sell it to Götene Heating Plant (Götene Värmeverk) located nearby.
Waste water becomes heat
THE YEAR IN FIGURESThe figures below refer to the energy consumption within production.
Götene production plant Korsnäs production plant
A clear downward trend is visible here, that is, reduced energy uptake per tonne produced. During the year we reduced our total energy consumption at Götene by 2%, which corresponds to SEK 1,166,000 in reduced energy costs.
Energy/tonnes produced:
Year
2015
2016
2017
MWh/tonnes produced
3.46
3.43
3.36
MWh/tonnes produced
1.35
1.31
1.51
Energy sources for electricity for Götene and Korsnäs (2016): Renewable: 16.3% Nuclear and fossil: 83.7%
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The figures for Korsnäs do not paint an entirely fair picture; as we replaced our oil-fired boiler in 2017 with an electric boiler, electric-ity consumption naturally increased. It therefore looks like electricity consumption increased per tonne produced, whereas it in fact would have showed a down-ward trend if the replacement had not occurred.
Energy sources: Electricity, 100 %. Energy consumption:2015: 987 MWh2016: 1,300 MWh2017: 1,731 MWh
Electricity uptake/tonnes produced:
Year
2015
2016
2017
Energy consumption at Korsnäs has increased due to increased production volumes.
Production
Every drop counts
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Access to water is a key issue we continually focus on. For example, all water that comes into contact with food products must be drinking water-quality.
In Götene, where our most water-intensive plant is located, we are fortunate to have two extremely reliable water sources: municipal water from Lake Vänern and groundwater from our own source, the Västerby source.
The risk of a water shortage in Götene is almost non-existent. Despite this, we consider it important to measure and limit our consumption of water, both from an environmental and financial perspective. We also attempt to restrict the amount of milk residue and detergent or cleaning agents in our waste water. These efforts go hand in hand with Semper’s sustainability strategy and Götene’s environmental policy, which promote initiatives ensuring the efficient use of resources.
How we manage our water emissionsSemper has an environmental permit shared with Arla. This permit specifies our emission rights in terms of waste water, that is, how much waste water we are permitted to release into treatment plants and how polluted it is permitted to be. If the Götene plant exceeds the agreed level of emissions, we must then manage the remaining amount of waste water ourselves, which we do by temporarily diverting it on to so-called “catastrophe tanks”. To reduce the amount of water directed to the water treatment plant, Semper transfers condensate water to a wetland area. Once it has undergone
a natural, microbiological treatment, the water diverted here can then be released out in the Götene river. Surface water is also directed to the wetland area.
Smart cleaning proceduresSemper does not have any established tar-gets concerning reduced water consump-tion, but we work continuously to become more efficient. The fact that our water consumption is closely linked to our energy consumption renders these efforts even more important. If we look at our cleaning processes, for example, a less water-inten-sive process means less water needs to be heated, which in turn saves energy.
We at Semper work to optimise our dish-washing procedure in line with the CIP method. This method is designed around the most important cleaning parameters in or-der to ensure the greatest possible resource optimisation. These parameters include the amount of water and amount of added detergent and cleaning agent. In practice, this means that dish water is retained in the system until it has been optimally utilised, as in a regular dishwasher. It also means that as little detergent and cleaning agent is added as possible to the clean water, thereby not overloading the environment.
Water is also an important issue for Semper’s production at Korsnäs. Minimal amounts of water are also used here, with the majority being used to bake the gluten-free crispbreads. For reasons linked to food safety, we only clean the equipment that comes into direct contact with the dough – the rest is dry-cleaned.
50%THE AMOUNT OF WATER AT GÖTENE THAT COMES FROM OUR OWN WATER SOURCE.
THE YEAR IN FIGURES
Korsnäs production plant
The increase in water consumption at Korsnäs is due to the fact we are now producing more bread.
Year
2015
2016
2017
Total water consumption (m3/month)
890
1,486
1,513
Surface water (municipal water from Lake Vänern).Groundwater (own water from Västerby source).No other sources of water were used.
The increase in total water consumption at Götene can be explained by the fact the production volumes increased.
Götene production plant
Year
2015
2016
2017
Total municipal water consumption (m3/month)
6,648
8,447
8,417
Total water consumption, own source (m3/month)
6,281
5,908
7,707
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Production
To be in a position to offer our customers and consumers fresh food products, Semper needs access to highly efficient transportation. Our
transportation should be reliable, safe for the products – and, on the whole, fast. This is due to the fact that many of Semper’s food products have a limited shelf life. For this reason, a significant proportion of Semper’s transportation is by lorry, for example all transport from Götene and Korsnäs to the warehouse in Örebro. When permitted by the product, we also transport by boat or ship, and we continuously assess whether the products can be transported in different ways. In 2017, for example, we began reviewing whether we can transport goods to the warehouse in Örebro by train.
How we safeguard the environmentSemper does not have its own fleet of lor-ries; we hire all of our transportation. There are environmental benefits to this, as the transport companies make money from their lorries being as fully loaded as possible. We work together with major players who take responsi-bility and jointly load goods with other transport companies. Our travel policy specifies that our employees are to select environmentally friendly travel options. For employees who drive a lot as part of their role, we also arrange training courses in environmentally friendly driving methods, known as eco-driving.
Emissions from production Until 2017, it was not technically
possible to measure CO2 emissions linked to production. As our desire is to reduce CO2 emissions, we assess ways in which we can measure CO2 emissions per tonne of product produced. Our objective is to ensure this is applicable from 2019. The next step will of course involve reducing production-related CO2 emissions.
Hero uses the CO2e (carbon dioxide equivalent) per tonne ratio to monitor developments of CO2 emissions over time. Over the past few years, Semper’s product portfolio has moved towards lighter products, which means that a fully loaded lorry does not hold as many kilogrammes of product. This explains why CO2e per tonne of product is increasing, even if the emissions value is stable over time.
CO2 EMISSIONS
Focus on transportHow can we at Semper contribute to the UN’s
sustainable development goal to reduce green-
house gas emissions? The first step is to make our
transport more efficient.
Transport at Semper
We use transportation to our production plants in Götene and Korsnäs, to
our warehouse in Örebro and from that warehouse
to our customers.
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THE YEAR IN FIGURESSemper measures and monitors CO
2 emissions for the volumes
transported from our warehouse in Örebro to our customers. Other transportation, for example transportation of goods to the plants and transportation from the plants to the warehouse, are not covered here. This is partially due to the fact that we, within the Hero Group, often manu-facture products for each other and that we need to limit the flow of goods based on our own activities. If we were to include the transport flow from a sister company, for example, the figure would be counted twice, as the sister company reports its CO2 emissions just as we do.
Year2015
2016
2017
CO2 emissions 853 CO2e/tonne
1,069 CO2e/tonne
2,065 CO2e/tonne
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Semper’s customers and consum-ers place ever-clearer demands on environmentally sustainable packaging materials – and we welcome this! We use recycled
materials as far as possible; some 40% of the packaging material purchased by Semper in 2017 came from recycled ma-terials, while 93% was recyclable. (These figures are based on information from 13 of our 15 packaging suppliers.) Naturally, we also work to ensure our consumers are able to recycle the packaging, including by making sure that it is clearly specified how it should be separated.
We continuously review our existing packaging in order to make more envi-ronmentally friendly choices. In 2017, for example, we changed the packaging on our cereal drinks from a hard, vacu-um-based package to a soft, nitrogen gas-
based version. This change was due to the fact that the vacuum in the old packages occasionally leaked and the product was therefore often thrown away unneces-sarily. The new, soft packaging offers the same protection of the food product and can guarantee the same sustainability as before, while also having a lower risk of being scrapped. Less wastage means fewer resources are wasted in terms of both food and packaging.
Virgin materials As part of our work on packaging, we follow current legislation and recommendations from the Swedish National Food Adminis-tration. For example, materials that come into contact with food may not transfer undesirable chemical substances to the food, as this could pose a danger to people’s health, entail an unacceptable change to the composition of the food product or
reduce its taste and smell. For this reason, we use what is known as virgin materials for all packaging that comes into closest contact with the food products.
Future initiativesOver the course of 2018, Semper will be launching a project to improve internal expertise relating to packaging and exam-ine how we can design more environmen-tally friendly packaging. By way of greater expertise in this area, we will be able to take the packaging issue into consider-ation from a more clear environmental perspective as early as during the product development stage.
This project will involve a workshop together with The Packaging and News-paper Collection Service (FTI), in which employees from relevant departments at Semper will participate.
Even better packaging
Packaging is highly demanding in terms of ingenuity – truly excellent packaging should be both functional and environmentally friendly as
well as safe and attractive. At Semper, we believe that our packaging can always be better.
93%OF THE MATERIAL PURCHASED BY SEMPER WAS RECYCLABLE.
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Safe food
CHAPTER 4
Safe foodProducing high-quality and safe food is vital for all food companies. It is a necessity
for us, as our food is specially adapted for young children
and people who are sensitive to gluten.
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Our consumers should feel safe when choosing our food. This is why we at Semper are committed to ensuring we have a safe supply chain. We place a major focus on safety when it comes
to our food, as this ensures quality and avoids risks. For example, it is extremely important that no gluten finds its way into our gluten-free products, as this can cause digestive problems in people with a gluten intolerance. If we consider our youngest con-sumers, they are more easily harmed by things such as mould toxins, heavy metals and pesticides. This renders the safety initiatives surrounding our baby food particularly important. We have strict controls intended to ensure that the baby food is safe and will not lead to unnecessary stress on their small bodies.
Semper’s expertise relating to food is rooted in the knowledge that it is vital that children – as well as adults – eat both nutritious and delicious food. For this reason, food safety is one of our most im-portant key areas.
About gluten intolerance
Gluten is a protein found in our com-mon varieties of cereal such as wheat, barley and rye. Gluten intolerance, or coeliac disease, is when the lining of the small intestine is damaged by gluten. In turn, damage to the intestine means the body is not able to process vital nutrients in a satisfactory way. It is currently estimated that around 1-2% of the global population suffers from coeliac disease.
Gluten intolerance can only be treat-ed by entirely eliminating gluten from food. This means that wheat, barley or rye must be excluded in the diet. This gluten-free diet needs to be maintained for the rest of the person’s life. If this diet is not followed, the symptoms will return and there is a increased risk of complications from a lack of nutrients, for example.
As it can be difficult to find cereal-based gluten-free food, Semper offers glu-ten-free food products that make it eas-ier for those with a gluten intolerance to maintain and vary their gluten-free diet. We offer products such as bread, baking mixes, pasta, breakfast cereals, cakes and biscuits – all gluten-free.
Food safety and quality
How we produce safe and high-quality food products for
all of our consumers.
37
Safe food
»Our youngest consumers are particularly sensitive, which is why safety initiatives surrounding our baby food are so important.
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Governance and legislation
Semper’s plant in Götene is certified in accordance with Food Safety System Certification (FSSC) 22000, an international standard for governing food safety and quality. Certification in line with FSSC 22000 clearly shows that Semper has a proactive strategy in the area of food safety. Furthermore, the standard is recognised globally and facilitates communica-tion about quality in an international market.
In the future, our bakery in Korsnäs will also become FSSC-certified. We currently adhere to established risk assessment principles and safety systems to safeguard our production of gluten-free crispbread at Korsnäs.
Swedish food legislation applies to Semper’s gluten-free food products, while specific legislation applies to baby food, namely EU regulation no. 1881/2006 and EU directive 2006/125/EG. These rules apply to packaged food products intended for children aged 0-3, and the legislation regulates the quality of ingredients and food for baby food, with spe-cific limits in place regarding remnants of pesticides, heavy metals and mould toxins. Standard food products available for sale in supermarkets may contain far higher levels of these undesirable substances when compared to baby food. In a homemade porridge containing mashed strawberries, for example, the strawberries could contain one thousand times more anti-mould agent than those contained in a strawberry baby porridge by Semper.
Checks throughout the chain
A chain is only as strong as its weakest link. This is why Semper places strict safety and quality requirements on its suppli-ers of ingredients. We carry out visits to potential new suppliers, and each year we
also draw up a schedule of visits to existing suppliers, at which their work on quality and food safety is fol-lowed up by a Quality Manager from Semper. During these visits, we examine aspects such as whether the supplier is complying with food and baby food legislation and whether they are meeting our own specifications for purchased food products. We also monitor how the supplier is working generally on areas such as traceability, allergens and hygiene.
These supplier visits are a key strategic activity. The idea is that all existing suppliers are to be visited on a rolling schedule, and that those who make any kind of change to their plant are to be prioritised. We focused on our gluten-free suppliers in 2017 and our target for 2018 is to carry out supplier visits to at least 95% of our strategic suppliers. These are the suppliers who we deem it valuable to inform about our requirements, as well as gain a better insight into how they ensure food safety and traceability.
Semper’s control functions are in place from the supplier of ingredients right up to the point at which we receive the ingredient at one of our production plants. Many of our suppliers have certified products, which is a mark of quality in itself. However, Semper also conducts random tests of all the different ingre-dients we receive, whether they are certified or not. In terms of cereals, for example, we test for heavy metals and mould toxins, while for vegetable oils we test whether the oil contains undesirable remnants of pesticides.
The ingredients in our gluten-free products are pur-chased with Certificates of Analysis (COAs) and we have serious suppliers who fulfil our quality require-ments – not just in terms of the absence of gluten but also in terms of microbiological quality and foreign substances
Both external and internal audits are also carried out at Semper. The Swedish National Food Admin-istration is the supervisory authority for the plant in Götene, and they visit us several times per year in both pre-announced and unannounced visits, the latter being known as surprise inspections. A food inspector from the City of Sundbyberg visits the head office at least once a year in a supervisory capacity. In Korsnäs, the food inspector from Falu municipality carries out an annual inspection of the bakery.
Internal audits are carried out around once per year at each plant.
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Why Semper exclusively uses cereals from farms in the area with documented low levels of heavy metals such as cadmium in our baby porridge and cereal drinks.
Healthy soils behind our porridge Semper has long followed the environmental debate surrounding pollution in nature and how it affects our crops. Today, unfortunately, it is not unusual for soils to be contaminated and to contain high levels of the heavy metal cadmium, which leads to cadmium being absorbed into the grains that eventually end up on consumers’ tables. This is why Semper exclusively uses cereals from farms in the area with documented low levels of heavy metals such as cadmium in our baby porridge and cereal drinks.
No traces of glutenSemper works meticulously to ensure that our gluten-free products do not contain any traces of wheat, barley or rye. These ingredients may not be contaminated by glu-ten during manufacturing, transportation or packaging. Take Semper’s “Pure oats”, for example, which are safe to eat for people with a gluten intol-erance. They are specially han-dled from sowing to cultiva-tion, threshing and processing of the grain, which minimises the risk of mixing them with other types of cereal. The oats are cultivated in specially se-lected farms at which wheat, rye or barley is not permitted to have been cultivated over the past two years. The fields are inspected and both the harvesting and manufactur-ing processes are conducted under strict quality controls. Each set of “Pure oats” is then analysed to ensure it does not contain any gluten.
The precautionary principleWe at Semper know that it is extremely important for par-ents of infants and young chil-dren to feel sure that the food they serve is not only delicious but also supplies their children with the required nutrients. We also want the children to enjoy different sensory experiences, and last but not least, we want our food to play a part in laying the foundations for healthy di-ets. In the event that something should happen and Semper needs to recall a product, the precautionary principle is always applied. This means that we decisively recall products that do not meet our estab-lished quality requirements.
»
Safe food
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Nutritional content is important for all of our food products, but particularly those intended for the very youngest. Infant formula is Semper’s clearest example of this. No other food is as significant, given
it needs to satisfy the entire range of nutritional needs during the period in which the child should go up threefold in weight and its brain is developing rapidly. For this reason, the content and safety of our infant formulas is one of our most important responsibilities.
We at Semper follow current recommendations within the fields of nutrition and ingredients for infants and young children. A diet based solely on Semper’s baby food fulfils both the Nordic Nutritional Recommendations (NNR) and recommendations issued by the Swedish Paediatric Society, European Society for Pediatric Gastroenterology, Hepatology and Nutrition (ESPGHAN) and the Swedish National Food Administration.
When we develop our baby food, we always adapt the choice of ingredients and composition in a way that ensures the food contributes to the nourishment of the child, while enabling them to lay the foundations for a healthy diet. We offer foods that accompany children along their entire journey with food, from birth up until the point they eat their family’s food. Based on recommendations that specify that the introduction of solid foods can begin from 4-6 months of age, we have developed varying types of food to ensure children can gradually adapt to new flavours and consistencies.
Research into baby foodThere is a general consensus nowadays that food we consume early on in life has an effect on health later in life. Studies are continuing across the globe in the field
Nutrition is one of the cornerstones of Semper. This is how we work in this area and on future research.
of baby food and nutrition, for example concerning different nutritional compositions and whether they can be improved. Semper plays a part in putting the pieces of this puzzle together. We drive research into nutrition forward by way of clinical studies and ensure that our baby food satisfies the need of each child. We present the results of these scientific efforts at inter-national paediatric and nutritional conferences.
Semper has a scientific council at which we high-light questions that we would like to see answered by research. We apply for research grants together with universities and colleges for various different studies. In 2017, Semper supported and became involved in running two clinical studies at Umeå University. The first was looking into infant formulas and the other into weaning food. The results of both studies will be presented in 2019-2020.
Iron-related newsInfants are born with a store of iron that is used during their rapid increase in weight over the first few months of life. At the age of 4-6 months, this store of iron be-gins to run out and needs to be replaced by iron from food. As it is difficult to obtain a sufficient amount of iron through normal food, it is recommended that children eat iron-fortified porridge and cereal drinks when they begin taking weaning food and up until age 2. It is not sufficient that there is iron in the food, however; the availability must be good as well. Iron uptake in the intestine is affected by the solubility of the iron, for example – the more soluble the iron, the better the uptake.
In 2017, Semper decided to convert to a more soluble source of iron in all of its cereal drink and porridge products. These new products will be launched over the course of 2018.
Marketing of infant formulas Semper adheres to the WHO Code adopted in 1981 that regulates marketing of infant formulas and aims to safeguard breastfeeding.
The basis of a healthy diet
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Important nutrients Certain nutrients are somewhat more important than others in terms of giving children the best conditions to grow and develop. Swedish food legislation contains “approved health claims” for certain nutrients, which may be written on packages if they constitute a certain amount of the product. Semper’s cereal drinks and porridge have been specially developed so that several important claims can be used:
IRON contributes to normal intellectual development and understanding in children.
CALCIUM, PHOSPHORUS AND VITAMIN D are necessary in ensuring that children’s skeletons grow and develop normally.
IODINE contributes to normal growth in children.
VITAMIN D contributes to the normal functioning of the immune system in children.
Safe food
Why we use palm oilPalm oil is a vegetable oil composed of fatty acids that are valuable from a functional and nutritional perspective. However, there are also social and environmental chal-lenges linked to the use of palm oil.
Semper strives to ensure that its food for infants and young children contains a fatty acid composition similar to that of breast milk. To satisfy the requirement for vital fatty acids and to ensure that the balance between different families of fatty acids are as similar to breast milk as possible, we use palm oil in our infant formulas. Palm oil is rich in a special fatty acid that is also found in breast milk.
Semper only uses RSPO-certified and segregated palm oil in its infant formulas. RSPO is an acronym of Roundtable on Sustainable Palm Oil, a regulation ensuring reasonable working conditions, fewer social conflicts and the protection of valuable forests. In accordance with the RSPO, no new plantations may be laid in remaining areas of untouched rainforest and other important ecosystems. Segregated palm oil means that the ingredient has been particularly carefully managed by selected plantations.
Palm oil may also be found in Semper’s healthy snacks and cakes, as it has positive functional properties for such products. We are currently working together with our suppliers to ensure that only RSPO-certified and segregated palm oil is used in these products too. A policy governing this area was drawn up in 2017.
Gluten-free and nutritiousAt Semper, we naturally want our gluten-free staple foods such as bread, breakfast cereals and pasta to be both delicious and healthy. They must have a good composi-tion of fats and fibre content, and they are enriched with B-vitamins and iron where necessary. In order to select the best ingredients and create the most appropriate food compositions, Semper tracks the latest research in this area. We also support projects and research studies. In 2017, we were part of a EU project examining the use of beans and other legumes in food products.
In order to select the best ingredients and create the most appropriate food compositions, Semper tracks the latest research in this area.
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100%THE AMOUNT OF PALM OIL WE PURCHASE FOR OUR INFANT FORMULAS THAT IS SEGREGATED AND FULLY TRACEABLE.
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Combatting corruption is a fundamental issue
for Semper.
Major risks are linked to the spread of corruption within an organisation. Bribes, blackmail and price cartels can take hold and
both individuals and entire sectors can be harmed. By working actively against corruption and bribery, we minimise the risk of financial impropriety in our operations and along our supply chain.
National legislation in the countries in which we operate along with our Code of Conduct form the basis of our efforts against corruption. Our Code of Conduct follows the principles of the UN Global
Compact in order to counter corruption, blackmail and bribery. In 2017 we produced a new and more detailed policy, the Anti-Bribery and Anti-Corruption policy, to show that we are in a stronger position to tackle this area. The new policy will be implemented for affected employees in 2018.
The Hero Group – and thus Semper – are also members of Sedex, a non-profit membership organisation that works to strengthen responsible business in global value chains. Sedex produces guidelines in several important areas, including ethical business practices.
Anti-corruption
Guided by business ethics
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Rules governing invoicingTo avoid irregularities or abuse with-in Semper’s own accounting system, we have rules and procedures in place for how invoices are to be handled and how new suppliers are to be set up. For example, one person is not permitted to approve an entire series of transactions. An employee who sets up a new supplier in our system is also not permitted to initi-ate an invoice from that supplier.
When an invoice has been added to our business system, there is a well-developed framework govern-ing who may approve and book that invoice. Whether an employee may approve or book an invoice depends partly on which position that person holds and partly on the amount of the invoice.
Work with suppliersOur anti-corruption efforts natu-rally go far beyond Semper’s own operations – checks along the supply chain represent one of our anti-cor-ruption initiatives. Semper’s new Anti-Bribery and Anti-Corruption policy lays out how an approval process of new suppliers should be carried out and highlights potential “red flags”, that is, warning signs in suppliers’ behavior that employees should be aware of.
Semper’s suppliers are expected to approve our Code of Conduct or present a suitable equivalent. We also require new suppliers to join Sedex if they have not already done so. We also accept them being a member of a similar organisation. Semper conducts annual follow-ups
of the number of suppliers who have confirmed adherence to our Code of Conduct, and the Hero Group fol-lows up its suppliers’ status in Sedex on a monthly basis.
Future plansIn 2018, Semper’s Nordic purchas-ing and management groups will undergo training in the areas of anti-corruption, competition and anti-trust, to thoroughly acquaint them with our new Anti-Bribery and Anti-Corruption policy The training will then be offered to the rest of our affected employees, for example the sales force and employees who make call-off orders with suppliers.
ResultsAt the end of 2017, the proportion of suppliers having joined Sedex amounted to 93%. Semper will work to ensure that this proportion of Sedex-affiliated suppliers increases and that our major suppliers become SMETA-certified (Sedex Members Ethical Trade Audit Certification).
By the end of year, the number of suppliers who had confirmed in writing that they adhere to our Code of Conduct amounted to 49%. This low figure is due in part to the fact that suppliers who send in their own Code of Conduct instead of confirm-ing adherence to ours have not been counted, even if their Code of Con-duct proves to be equally acceptable. Over the coming years, our adminis-trative procedures surrounding this follow-up work will be reviewed to ensure that the statistics are able to paint a more accurate picture of the situation.
49%HAVE CONFIRMED
ADHERENCE TO OUR CODE OF CONDUCT.
Semper did not have any cases of corruption or bribery in 2017.
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CSR
Semper in societyWe want to be a supportive force in more ways than just through our food. The following are some social commitments close to our heart.
The foundations of good health later in life are laid during the earliest infant years. One of Semper’s long-term targets for sustainable health is thus promoting positive and healthy eating habits among children. All children should have the right to good health and the opportu-nity to develop, which is also a notion established in the UN Convention on the Rights of the Child and the UN’s global sustainable development goals.
Over 200,000 children in Sweden live in socioeconomically disadvantaged areas. Living in a family that is struggling often affects the entire day-to-day life of a child. Numerous studies show that there is a link between eating habits and social differences such as income and education. The areas with the highest levels of child poverty also have the worst health figures. For this reason, Semper
has chosen to support Save the Children and proactively work to educate people about food and infant health in socially and economically disadvantaged areas of Sweden. Semper has collaborated closely with Save the Children over the years, both in past long-term projects and by way of donations to catastrophe-relief efforts. In early 2017, we launched a new three-year project called “Children’s right to good health” (Barns rätt till god hälsa).
As part of the new collaboration, Semper will be supporting Save the Children for three years and will proactively provide information and lectures about nutri-tion and children’s health. In addition to donating MSEK 1.5 to Save the Children’s overall efforts, we have appointed a proj-ect manager responsible for educating people about a healthy diet and children’s
health in parental forums that Save the Children arranges in relevant areas. The aim of this is to help ensure that children in such areas are afforded the same op-portunities as other children to develop healthy eating habits and good health.
The areas in which Save the Children is particularly investing to the benefit of children and young people are several residential areas in Stockholm, Gothen-burg, Malmö and Borlänge. In February, one of Semper’s paediatric dieticians held one of the first meetings with parental groups in Tensta, Stockholm. During the year, a further five meetings were held in Tensta as well as two in Malmö and Arlöv. At the meetings, Semper’s paediatric dietician held lectures about children’s health, responded to questions, discussed eating habits and even prepared some baby food together with the parents.
THE PROJECT: Children’s right to good health
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Semper supports and participates in clinical research projects at universities and colleges
within the field of nutrition for infants and young children, primarily in the Nordic region.
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Stockholms Stadsmission Semper has begun collaborating with Stockholms Stadsmission, which involves us delivering food with short best-before dates to Matcentral, which then distrib-utes it in different ways. A number of products are sent on to Matmissionen’s stores, while others are sent to Stockhol-ms Stadmission and other organisations’ welfare activities.
Research and education Semper supports and participates in clinical research projects at universities and colleges within the field of nutrition for infants and young children, primar-ily in the Nordic region. We also offer
mentoring of doctoral students. During the past year, we also mentored univer-sity students who were writing their dissertations. In addition, we support and actively participate in a broad sense in both national and international research projects within the field of gluten-free products.
In both Sweden and Denmark, Semper publishes a magazine for the healthcare system in which we discuss nutritional issues for infants and young children as well as gluten-intolerant people of all ages. During the past year we arranged a day of seminars in various locations nationwide. The theme this year was the problems linked to excessive weight and obesity among children.
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Stakeholder dialogue
Our major stakeholders
STAKEHOLDER GROUPS
Employees
Consumers
Customers
Public authorities
Municipalities
Universities & colleges
Healthcare system
Stakeholder organisations
Trade organisations
COMMUNICATION
Interviews Workshops Surveys
Contact with consumersSocial mediaSurveys
Dialogue/discussionsInformation meetings
Information meetingsInspections
Information meetingsInspections
Scientific meetingsMentoring
SeminarsOwn websiteSemper’s magazine
Project collaborationsInformation meetings
Committee activites
Our stakeholders are the groups who are af-fected by our operations or who we influence. Semper’s most important stakeholder groups include: owners, customers (retailers), consum-ers, employees, municipalities, authorities, the healthcare system, universities, colleges and others. We continuously pursue an open dia-logue with our stakeholders in order to develop our sustainability initiatives based on what they consider to be the most important issues.
4848
Sig
nifi
can
ce f
or
Sem
per
’s s
take
ho
lder
s
Food quality
Food safety and nutrition
Sustainable suppliers (incl. human rights, child labour etc.)
Waste management, incl. scrapping
CO2 emissions
Energy use
Water consumption
Use of materials
Anti-corruption
EMPLOYEES
OWNERS
CUSTOMERS
UNIVERSITIES & COLLEGES
SOCIETY
Health and safety, food quality, nutrition, reducing impact on environment and climate
Business ethics, customer satisfaction, financial profitability
Reducing impact on environment and climate, scrapping, food quality, nutrition
Food safety, quality, nutrition, innovation
Sustainable value chain, food safety and quality
In autumn 2017, our materiality analysis was launched using a structured process. We began our analysis with help from internal experts, and based it on Semper’s value chain and an external analysis of global guidelines, among other areas. They identified a wide range of issues surrounding sustainability. Following this, we carried out workshops, interviews and sent out surveys to
our stakeholders. Based on these initiatives, we identified important sustainability areas that will help us prioritise the sustainability issues that are most relevant for us to highlight and examine further. We also took the GRI’s guidelines for reporting into account throughout the work on the materiality analysis. The model below outlines the sustainability issues that were highlighted.
Focus on transparency
Semper’s management group ultimately validated the sustainability issues and decided which focus areas the company would work on in order to contribute to sustainable development.
The diagram to the right shows the results of our materiality analysis.
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Materiality analysis
Semper’s ability to influence sustainable development
4
3
2
1
0 1 2 3 4 0
GRI Index
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GRI STANDARD NUMBER PAGE SCOPE/COMMENT
ORGANISATIONAL PROFILE
102–1 Name of the organization pp. 4-5
102–2 Activities, brands, products and services
pp. 4-5
102–3 Location of headquarters p. 5
102–4 Location of operations pp. 4-5
102–5 Ownership and legal form pp. 4-5
102–6 Markets served pp. 4-5
102–7 Scale of the organization See Annual Report
102–8 Information on employees and other workers
p. 17
102–9 Supply chain GRI Index Semper Supply Chain consists of a central organisation in Sundbyberg and two production plants in Sweden, in Götene and Falun (Korsnäs). Semper Supply Chain manages ingredients, products produced in-house and products purchased from external suppliers.
102–10 Significant changes to the organization and its supply chain
GRI Index No significant changes within Semper AB
102–11 Precautionary Principle or approach pp. 3, 6, 40
102–12 External initiatives pp. 46-47
102–13 Membership of associations GRI Index • The Swedish Food Federation• The Swedish Food Retailers Federation• Specialised Nutrition Europe (SNE)• Swedish Nutrition Foundation (SNF) • Normpack • Svenska retursystem• GS1• Validoo• The Packaging and Newspaper Collection Service• Platskretsen• Returkartong• Metallkretsen• Svensk glasåtervinning
STRATEGY
102–14 Statement from senior decision-maker
p. 3
ETHICS AND INTEGRITY
102–16 Values, principles, standards, and norms of behavior
p. 7
GOVERNANCE
102–18 Governance structure pp. 8-9
STAKEHOLDER ENGAGEMENT
102–40 List of stakeholder groups p. 48
This report has been produced in accordance with the Global Reporting Initiatives (GRI) reporting standard and is in line with the GRI Standard Core option.
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GRI STANDARD NUMBER PAGE SCOPE/COMMENT
102–41 Collective bargaining agreements p. 17
102–42 Identifying and selecting stakeholders pp. 48-49
102–43 Approach to stakeholder engagement pp. 48-49
102–44 Key topics and concerns raised p. 49
REPORTING PRACTICE
102–45 Entities included in the consolidated financial statements
See reverse
102–46 Defining report content and topic Boundaries pp. 48-49
102–47 List of material topics p. 49
102–48 Restatements of information GRI Index No changes as this is Semper AB’s first sustainability report
102–49 Changes in reporting GRI Index No changes as this is Semper AB’s first sustainability report
102–50 Reporting period See reverse
102–51 Date of most recent report GRI Index This is Semper AB’s first sustainability report
102–52 Reporting cycle See reverse
102–53 Contact point for questions regarding the report See reverse
102–54 Claims of reporting in accordance with the GRI Standards
See reverse
102–55 GRI content index
102–56 External assurance GRI Index Semper AB’s auditor has seen this sustainability report, no other external audit has been carried out
FINANCE
GRI 205: 205–1 Operations assessed for risks related to corruption
pp. 44-45
Anti-corruption 205–2 Communication and training about anti-corruption policies and procedures
p. 45
205–3 Confirmed incidents of cor-ruption and actions taken
p. 45
ENVIRONMENT
GRI 301: 301–1 Materials used by weight or volume
p. 35
Materials 301–2 Recycled input materials used
p. 35
GRI 302: 302–1 Energy consumption within the organization
pp. 28-29
GRI Index
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GRI STANDARD NUMBER PAGE SCOPE/COMMENT
Energy 302–3 Energy intensity pp. 28-29
Energy 302–4 Reduction of energy consumption
pp. 28-29
Energy 302–5 Reductions in energy require-ments of products and services
pp. 28-29
GRI 303: 303–1 Water withdrawal by source p.31
Water 303–3 Water recycled and reused p.31
GRI 305: 305–1 Direct (Scope 1) GHG emissions
pp. 32-33
Emissions 305–4 GHG emissions intensity pp. 32-33
GRI 306: 306–2 Waste by type and disposal method
p. 26
Effluents and waste
GRI 307:Environmental compliance
307–1 Non-compliance with environmental laws and regulations
GRI Index No incidents during the year
Environmental compliance
GRI 308: 308–1 New suppliers that were screened using environmental criteria
pp. 19-20
Supplier environ-mental assessment
SOCIAL ISSUES
GRI 403: 403–2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work- related fatalities
pp. 16-17
Occupational health and safety
GRI 408: 408–1 Operations and suppliers at significant risk for incidents of child labor
pp. 19, 22
Child labour
GRI: 412 412–1 Operations that have been subject to human rights re-views or impact assessments
pp. 19, 22
Human rights assessment
GRI: 416 416–1 Assessment of the health and safety impacts of product and service categories
p. 41
Customer health and safety
GRI: 419 419–1 Non-compliance with laws and regulations in the social and economic area
GRI Index No incidents during the year
Socioeconomic compliance
INGREDIENTS
ABOUT THE REPORTThis is the first sustainability report produced by Semper AB and refers to the 2017 fiscal year. We have chosen to limit our sustainability reporting to operations in Sweden, which includes the two production plants in Götene and Korsnäs. In the future, we will report our ongoing sustainability initiatives annually.
The purpose and aim of the report is to describe Semper’s strategies, targets, visions, risks and opportunities in a transparent manner. We want to show how we can develop as a food company and contribute to sustainable development. The report primarily focuses on environmental and social issues and has been produced in accordance with the Global
Reporting Initiatives (GRI) reporting standard as well as the GRI Standard Core option.
Our auditor has seen this sustainability report relating to 2017, which has been produced in conjunction with Semper AB’s annual report.
For any questions relating to Semper’s sustainability report, please contact: Clara Södergren, Sustainability Manager • Tel: +46 (0) 70 328 28 49 • E-mail: [email protected]