Report 2019.

Corporate Social Responsibility.

In recent years, the world has embraced the crucial

importance of sustainable business practices, and of

Corporate Social Responsibility (CSR) as an important

foundation and guiding principle for companies’

success and impact. At Zeelandia we wholeheartedly

subscribe to this philosophy. Our ambition is to initiate

and further intensify the dialogue with our customers,

consumers, suppliers, employees and other stakeholders

on how Zeelandia can play its part. This CSR report aims

to facilitate this dialogue, by clearly stating our CSR

ambitions, our actions, progress as well as dilemmas.

Corporate social responsibility has always been an integral

part of Zeelandia’s company culture, from its beginnings

in the Netherlands 120 years ago to our current position

as a global leader in bakery ingredients. As a successful

family-owned business with strong roots in our local

communities around the world, we have always had a

strong sense of responsibility for our people, for society

as a whole and for the natural environment. CSR is

strongly embedded in our values and business practices

and we recognize it as a crucial enabler of the company’s

sustainable success.

Evidence of this commitment is not hard to find. This

CSR report highlights some of the hundreds of current

initiatives throughout our international organization

to reduce our environmental impact, to look after the

safety and well-being of employees, to scrutinize the

safety and nutritional value of our products and to make

a meaningful contribution to our local communities. And

these initiatives are underpinned by a strong corporate

commitment, reflected by a new, company-wide CSR

Preface

2

strategy which was introduced in 2019, and which in turn

is a crucial pillar of our overall corporate strategy.

This CSR report describes the outlines of this strategy,

our specific commitments and the action plan we have

drawn up for the short term. All of these focus on the

four CSR areas in which we believe we can have the most

meaningful impact:

• Better for consumers (safe and healthy products)

• Better for employees (health, safety and

professional growth)

• Clean energy

• Zero waste

As this report illustrates, our approach is characterized

by longer term ambitions as well as practical progress.

It builds on our strengths: it engages and empowers our

local organizations to take responsibility for their own

performance, and at the same time allows us to join forces

and resources and accelerate progress by working as One

Zeelandia.

Of course, challenges remain. For example, as our

production volumes grow and the nature of our product

portfolio changes, reducing CO2 emissions is not easy:

yet our clear commitment is to become a CO2-neutral

company. We will continue to invest in R&D and product

development of ingredients that contribute to a healthy

lifestyle, and around the world we will intensify our efforts

to attract, engage and empower a diverse workforce. And

although the COVID-19 crisis has presented the world,

including our company, with new and urgent challenges,

it has only reinforced our conviction that CSR is an crucial

part of the route towards sustainable growth, impact and

success.

We are also acutely aware of the fact that real progress

requires a shared commitment throughout the supply

chain. Publishing this report is one of the many ways in

which we seek to intensify the dialogue and constructive

cooperation with other stakeholders, including our

customers and suppliers. It is our sincere hope that this

report will help our own organization as well as our

stakeholders to carry on the momentum CSR has gained

in recent years, enabling us all to maximize our impact

on the health and prosperity of our communities and our

planet.

Executive Board, Royal Zeelandia Group

3

CSR @ Zeelandia 06

Governance & transparency 12

Better for consumers 20

Better for employees 25

Clean energy 31

Zero Waste 37

Community support 43

Looking ahead 48Contents.

4

3,224 employees.

27 countries.

472 million euros.

Our people. Zeelandia employs 3,224 people

worldwide (including joint ventures).

Together with our suppliers they explore

new ingredients and more sustainable

production processes, to meet the growing

demand for healthy, nutritious bread and

pastry products made from responsibly

sourced ingredients.

Our product portfolio covers thousands

of products and includes bread and

pastry mixes, bread improvers, fermented

products, pastry fillings (including fruit),

coatings as well as release agents. The

products are tailored to local tastes and

needs in over 100 countries.

Our customers include bakeries of all

sizes, from small artisanal bakeries to

large industrial bakeries catering for

(international) retail chains and out-of-

home outlets. Zeelandia exports to around

70 countries and in 2019 registered total

net consolidated sales amounting to

472 million euros.

5

CSR @Zeelandia

6

2019 was a pivotal year in the development of Zeelandia’s CSR ambitions. Although CSR has been a prominent part of our company’s philosophy and business practices for years, for the first time we have formalised that commitment in the form of a group-wide CSR strategy. Also, CSR was included in a new overall group strategy as one of the two most fundamental enablers of future growth.

7

The importance of CSR has been recognized

throughout the Zeelandia Group for many years.

Individual countries have invested in areas such as

energy efficiency, waste reduction and the well-

being of our employees and local communities. On a

corporate level, we support such initiatives by sharing

knowledge and resources, and by developing effective

policies and business practices in areas such as ethical

and sustainable procurement. We maintain high

standards in food safety and have been monitoring our

environmental impact for years, aiming for year-on-year

reductions in CO2 emissions and waste production.

In a way, such efforts are a natural expression of our

company values. Like many other family businesses,

Zeelandia is used to taking a long-term view and

has a strong sense of responsibility when it comes

to looking after people and contributing to our local

communities. Increasingly, this natural commitment to

CSR is strengthened by the awareness that sustainable

business practices are in line with customer and

consumer demand, and that CSR initiatives are essential

to ensure sustainable success.

Accelerating progress through a CSR strategy

Evidence of this strong commitment to CSR is not hard

to find. In 2019 we counted no fewer than 431 separate

CSR initiatives throughout the group, most of them

carried out by individual countries, often with corporate

support.

A key question in recent years has been how to

streamline all these efforts and maximize their impact.

It was clear we needed a group-wide CSR strategy

in order to focus our energy and resources and set

priorities. A strategy provides a framework for better

reporting, using unified KPIs, which in turn enables

countries to benchmark their own performance

against that of their peers. A CSR strategy also provides

a platform for sharing best practices and pooling

resources, allowing us to accelerate the most important

initiatives and implement them throughout the group.

For Zeelandia CSR is one of the most fundamental enablers of future growth

8

In short, a strategy would enable us to work together and

achieve results as One Zeelandia.

At the same time, our goal is not to centralize

responsibility for CSR. We want to preserve and encourage

the initiative, commitment and ownership displayed by

individual countries. This is in line with Zeelandia’s overall

organizational philosophy, which recognizes that our

companies all operate in a specific cultural context, with

different local issues, market demands and regulatory

frameworks. In all aspects of our business, including

CSR, we want to enable and empower our companies

to take responsibility for their own performance as well

as to contribute to (and share responsibility for) the

achievements of the group as a whole.

CSR: a pillar in Zeelandia’s group strategy

In 2019 Zeelandia finalized its new group strategy for

the period 2019 – 2023. From a CSR perspective it was

an important milestone, since CSR is explicitly included

in this document as one the two most fundamental

enablers of our strategic goals, alongside human

resources:

The group strategy identifies the key areas in which

we want to focus our efforts. These are based on an

extensive stakeholder analysis from 2018 in which a

large number of internal and external stakeholders

were asked to prioritize the CSR areas of most concern

to them. The topics included in this survey were closely

linked to the UN’s Sustainable Development Goals

and were plotted in a materiality index. This exercise

allowed us to identify four areas in which Zeelandia can

have a large and meaningful impact:

CSR helps the company to meet the demands of customers, consumers, the government and society in general.

9

Better for consumers

Our ambition: We take responsibility for the consistency and

quality of our products. Our product range matches the latest

knowledge about the impact of food products on consumer health

and we are transparent in terms of raw materials and ingredients.

Better for employees

Our ambition: We are an attractive employer, recruiting,

developing, fostering, engaging and retaining a diversity of talent.

We create an environment in which employees can flourish and

stay fit and productive until retirement, aiming for an 80% score

on employee engagement.

Clean energy

Our ambition: We actively contribute to the transition to

renewable energy and work to reduce our greenhouse gas

emissions. We aspire to be climate neutral.

Zero Waste

Our ambition: we reduce food waste and recycle other types

of waste into new raw materials, contributing to the circular

economy. Our ultimate ambition is zero waste.

10

In addition to the general outlines of our CSR policy as

described in our group strategy, a specific CSR strategy

was developed in 2019, which includes group-wide

ambitions for 2023 and describes the process by which

we want to achieve them.

In addition to the CSR strategy, which has the same

time horizon as the overall corporate strategy, we drew

up an action plan for 2020 to implement these strategic

choices into our daily business. This action plan, as

well as the accompanying governance model we have

implemented, is described in more detail in the next

chapter, Governance & transparency.

A CSR strategy and action plan for 2020.

11

Governanceand transparency

12

By incorporating CSR into our overall strategy and

formulating ambitions, Zeelandia has committed itself

to making substantial progress over the next few years.

A crucial next question is how to achieve our ambitions.

This will require a pragmatic action plan, effective

governance models and strong engagement with both

our own employees and supply chain partners.

In 2019 we decided on a CSR strategy for the period

2019-2023. We also drew up an action plan in order

to implement our strategic choices into our everyday

work. As mentioned in the preceding chapter, our

goal is to work as One Zeelandia where possible, while

empowering individual countries to take responsibility

for their own performance. Our action plan reflects

this approach by combining top-down and bottom-up

elements:

1. Joint CSR projects

Based on the four chosen CSR topics and the list of

over 400 existing CSR initiatives, we have identified

eight group-wide projects in which we can accelerate

progress by clustering initiatives and pooling resources:

Better for employees

Better for consumers

Clean Energy

Zero Waste

Contract green power NL.

Solar panels best practice.

Healthy working conditions.

Waste reduction continuous improvement.

Recycle ready packaging - pilot for NL/BE.

Reduction of plastic.

Low calory - innovation concepts.

Plant based - innovation concepts.

13

Each of these projects will be led by a small team which

includes representatives from countries which have

already made substantial progress. For example, in the

Netherlands much has already been done to prepare

for the transition to 100% green electricity. Through

one of the eight joint CSR projects, this experience will

be shared with other countries who can model their

own green energy contracts on the Dutch template and

benefit from the insights and lessons learned by Dutch

colleagues.

2. CSR ambassadors

A governance model was established to ensure a two-

way commitment between Zeelandia’s corporate

departments and local companies: as a group we

value and encourage local initiative, while we expect

countries to adopt standards and tools that emerge

from joint CSR projects.

In this approach a crucial role is played by newly

appointed CSR ambassadors. In 2019 a network of

ambassadors from 28 countries was set up. These

ambassadors meet online on a monthly basis and

have access to an intranet platform to discuss

progress in the eight projects described above and

report on local ambitions, plans and best practices.

In their local organizations, the ambassadors’ role is

to share information, collect feedback and promote

awareness of and commitment to CSR topics. The CSR

ambassadors all volunteered for the role, demonstrating

their enthusiasm and commitment, and were selected

by their managing director to ensure they have the

support of their local management team.

In 2019 a network of CSR ambassadors from 28 countries was set up.

14

Our CSR ambassadors.

The CSR ambassadors form an international community with a very wide range of backgrounds, representing all functions within Zeelandia: specialists in areas such as QA, environment or safety, but also key account managers, marketeers, factory managers, management assistants and IT, R&D, logistics and HR managers. Some also have a communications background, which will be helpful as we enter the next phase, of engaging with local colleagues. 60% of the ambassadors are female; the team is a mix of very experienced professionals and young new employees.

15

One of the younger ambassadors is a test baker who just joined Zeelandia after graduating from university. Her focus, she explains, is on “employee health, as I believe that a healthy person is a happier person. I would also like to work with our marketing department to show how Zeelandia’s products can help the consumer achieve a healthy and balanced diet. The Silkgrain range for example contains a high level of fibre, and there is lots of research to show that a diet high in fibre could reduce the risk of bowel cancer - this is something we could look into promoting.” Another ambassador, who has worked on CSR for years, adds: “We are a sales

office and realized many initiatives in the past few years. Last year we needed some new ideas for further improvement and the list of initiatives helped a lot. We have selected 6 initiatives from the list and I will give a call to my fellow ambassadors to hear their experiences.”

16

Reporting mechanisms

As we move forward as a group, we need to be

able to assess our progress objectively, reliably and

transparently. In recent years, we have implemented

reporting mechanisms on several levels and in various

areas of CSR. For example, in monthly video calls

operational departments report on their performance

in the areas of safety and waste. Energy and recycling

are reported locally and consolidated annually. In

addition to sharing data and KPIs, participants also

share background information and lessons learnt: for

example, in safety discussions it is important to be open

and transparent on near-misses.

An important aspect we continue to work on, is to

improve group-wide data collection and reporting

discipline, using standardized KPIs. This touches all

areas covered by our CSR strategy, but is especially

important when assessing our environmental footprint.

For years, we have collected and aggregated data on

individual countries’ ecological footprint. Since 2012

we have been using Stimular’s ‘Envirometer tool’ to

measure our environmental impact in three focus areas:

transport, energy and waste. Yet due to the wide variety

of site and process characteristics and the resulting

differences in data definitions, it has proved challenging

to aggregate a 100% reliable overall picture. In 2019 we

agreed on a road map for further harmonization of data

over the next few years.

Building CSR engagement

While company-wide CSR initiatives and reporting

mechanisms are crucial, we cannot hope to achieve our

goals without the wholehearted support of our over

3,000 employees and other stakeholders. CSR needs

to be an integral part of every colleague’s everyday

work. In 2019 we took some vital steps in building CSR

engagement. For example, we prepared a group-wide

code of conduct and whistleblowing policy, which will

be rolled out from 2020 onwards.

CSR needs to be an integral part of every colleague’s everyday work

17

The network of CSR ambassadors described above will

also play a crucial role in building CSR engagement.

One of the criteria used in selecting them was that they

should be excellent communicators, since in the next

phase their role will include engaging local colleagues,

using newsletters and social media to support change

management and helping to integrate CSR into people’s

everyday work.

Investing in a sustainable supply chain

While our first responsibility is to make sure our own

choices and actions conform to high CSR standards, it is

important to recognize that we are part of a global and

often complex supply chain. In view of the substantial

volumes we purchase from suppliers, we have the

opportunity and responsibility to carry on a sustained

dialogue and influence their decision-making. For

example, we are committed to buying only sustainably

sourced palm oil.

Zeelandia believes that palm oil is to be produced in a

manner that is legally compliant and traceable, that

protects forests and biodiversity, reduces greenhouse

gas emissions and respects the rights of indigenous

people, workers and local communities.

Zeelandia’s objective is to realize a transfer to

purchasing only ingredients and/or products that entail

100% certified Segregated sustainable palm oil. This is

complemented with certified Mass-Balance sustainable

palm oil when Segregated sustainable palm oil is not

possible, and depends on local availability.

Zeelandia proactively participates in the Palm Oil Buyers

Scorecard and is a member of RSPO since 2015.

Our biggest challenge has been to convert a multitude

of ingredients containing only a small percentage of

palm oil to a Segregated supply chain model, convincing

18

suppliers of the need to adopt sustainable palm oil and

creating this change without a loss of functionality.

In total, we needed to convert 81 ingredients with

34 suppliers which took us two years to do so, including

the testing of the new ingredients in our product

applications.

By December 2019 over 99% of the palm oil we use

in Europe is certified sustainable palm oil (and > 95%

certified segregated palm oil).

Another important aspect of our purchasing policy is to

look at the ethical side of our supply chain. Throughout

the group we have taken steps to select suppliers who

actively support and implement our ethical guidelines.

Through our membership of trade body NEBAFA,

Zeelandia is a signatory of the Dutch International

Responsible Business Conduct (IRBC) Agreement for

the Food Products Sector. This is in line with Zeelandia’s

long-held commitment to conducting business in

a responsible way, by preventing corruption and by

promoting respect for human rights, labour rights,

people’s health, safety and the environment. IRBC

signatories are expected to identify, prevent and reduce

risks throughout the supply chain. In 2019 we submitted

our first risk management report for assessment. We

received some recommendations for improvement,

which were promptly implemented.

19

Better for consumersSafe, healthy and nutritious

20

We take responsibility for the consistency and quality of our products. Our product range matches the latest knowledge about the impact of food products on consumer health and we are transparent in terms of raw materials and ingredients.

Our strategic goals for 2023

• We enable healthier diets, by providing transparent

information on ingredients, nutrition and health,

application and portion sizes

• We improve the nutritional value of our products,

reduce salt and sugar content and calorie count, and

we develop and launch at least one healthy product

concept each year

• We are compliant with food safety requirements and

hold a global GFSI certification.

As a producer of bakery ingredients, Zeelandia has

a direct impact on public health and responsible

consumption patterns, two of the UN’s Sustainable

Development Goals. We need to ensure the safety of our

products, take responsibility for their nutritional value

and give customers and consumers the information

they need to make informed decisions.

21

Protecting and improving food safety

To guarantee food safety, our production facilities exceed

HACCP standards (Hazard Analysis and Critical Control

Points). Depending on local market requirements, our

facilities are certified by Global Food Safety Initiative

standards such as BRC, IFS and FSCC22000. Our goal is to

keep up to date with regulatory developments as well as

with new demands and requirements from customers, for

example in the management of allergens.

In 2019, we took several steps to offer customers and

consumers extra safeguards concerning the safety of our

products:

• All our sites monitor supplier risks and test incoming

materials. In our largest site in the Netherlands a

team screens the thousands of items in the Rapid

Alert System for Food and Feed for relevance to our

ingredients and takes action if needed. Issues are

shared with the relevant daughter companies. The

team also does food safety risk analyses. 17,000

potential risks were screened, of which 400 are being

actively managed and monitored. This is also done for

our production processes and packaging materials.

If a supplied ingredient is not meeting food safety

requirements, a crisis team takes over to control the

situation immediately.

Initiatives and achievements.

22

• In Poland, we took the emphasis on personal hygiene

to an even higher level by introducing easy-to-

use equipment that can quickly detect food and

microbiological residues.

Ensuring food safety involves meeting international

standards and relevant national legislation as well as

specific demands from customers. This implies that

each production facility within the Zeelandia Group

is responsible for monitoring local developments and

regulations and making any necessary changes in their

production process. And of course, taking responsibility

for food safety requires a proactive attitude, being alert

to possible improvements and ready to take action,

rather than waiting for relevant legislation to take

effect.

23

Healthy and nutritious food

Based on a continuous dialogue with (external)

stakeholders and experts, our R&D and Marketing

departments have developed innovation platforms

around the theme ‘Better for consumers’. These

platforms help us to translate consumer trends and

demands into new products.

Together with (local) product development, these

platforms have already led to a number of product

launches, which help customers make bread and pastry

products that are low in salt, fat and sugar and/or rich

in fibre, protein and vitamins.

• In Germany we launched two clean-label and wheat

gluten-free bread mixes: pure & JOY, which is rich in

protein and fiber, and Maximo Fresh, which is made

from alternative, sustainable raw materials, in this

case sunflower flour.

• In Belgium, all our products are labelled with a

‘Nutri-Score’, a third-party classification system with

categories ranging from A (healthy choice) to E

(to be avoided).

• Various countries introduced low-sugar or sugar-free

products, including Spain (vanilla filling), Brazil (zero

sugar filling), India/Middle East/Africa (sugar-free

jams and low-sugar cake mix) and the Netherlands

(jams with added fibres and/or sugar substitutes).

• Spain introduced a range of cake mixes with fruit

content, while India and Indonesia launched a

multicereal cake mix.

One of the short-term goals in our new CSR strategy

is to intensify these efforts. Two of the group-wide

projects defined in 2019 (see p. 13) focus on low-calorie

and plant-based innovations respectively. R&D and our

Centres of Expertise have already started work on new

food concepts, which are expected to be ready for the

next stage – product development – in 2020.

We launch more and more products which help customers make bread and pastry products that are low in salt, fat and sugar and/or rich in fibre, protein and vitamins

24

Better for employeesHealthy & engaged

25

We are an attractive employer, recruiting, developing, fostering, engaging and retaining a diversity of talent. We create an environment in which employees can flourish and deliver results as a OneZeelandia team, and in which they can stay fit and productive until retirement, resulting in an 80% employee engagement score.

Zeelandia protects the health and well-being of

employees by providing a safe working environment

and by fostering their personal and professional

development. Our efforts are guided by a continuous

dialogue with employees themselves, including

structural employee engagement surveys. In this way

we support the UN’s Sustainable Development Goals of

ensuring quality education, decent work and economic

growth for all. It is also crucial for the company’s

success, which depends on the energy, initiative and

commitment of healthy, engaged employees.

Our strategic goals for 2023

• We use group-wide standards for safety at work and

reduction of dust and heavy labour

• We involve people in change and create engagement,

using a standardized employee survey

• We hire talent from diverse background and invest in

developing their potential through lifelong learning

• We share best practices through a thriving CSR

community

26

A safe working environment is a basic prerequisite that

everyone working at Zeelandia should be able to count

on, under all circumstances. Subsidiaries and joint

ventures are expected to stimulate safety awareness

among employees, to develop adequate reporting

mechanisms and to take measures to mitigate

safety risks. We also need to protect our employees’

long-term health, by reducing physical strain and

mitigating exposure to dust and other substances with

a potentially damaging effect on people’s health. Our

long-term goal is zero accidents, zero health damage

and zero emergencies.

In 2019 the Corporate HR vision and mission, the

‘Zeelandia Smiley Concept’ was further implemented

within the group. In order to deliver a strong

contribution to the achievement of our strategic goals,

Corporate HR strongly focuses on a high level of people

enablement and engagement. In 2019 this led to the

further development and strengthening of the corporate

HR mission and One Zeelandia vision. An international

HR community was set up and we established further

alignment between corporate HR, local MDs and line

management. Also, corporate HR standards were

designed, developed and implemented, and we continued

implementing the Personal Development Plan (PDP).

In this PDP system, target setting is not only based on

performance targets but development and behavioural

targets are included as well. Behavioural targets in

particular will be valuable as we work towards the targets

laid down in the CSR programme. The system also helps us

to focus not just on achieving the targets themselves but

also on the way in which we achieve them.

Initiatives and achievements.

27

Local and corporate initiatives that have contributed

towards this goal in 2019 include the following:

• In Brazil, Emulzint Zeelandia implemented Golden

Rules for Work Safety, which are discussed at the

start of every meeting, training session etc. The

Safety Pyramid, a tool used for identifying possible

improvements, generated 334 suggestions, 87% of

which had been implemented by the end of the year.

Specific training was provided for emergency fire

brigade staff, outsourced technicians, people working

at heights and sales personnel who spend a lot of time

on the road. In May, a whole week was dedicated to a

range of initiatives aimed at preventing occupational

accidents.

• In its Czech production plants, Zeelandia invested

in various measures to improve safety and working

conditions, such as a pallet lift, an automated safety

bar to prevent falling from height and dust extraction

equipment.

• In Poland, extensive first aid stations were designed

and placed at key locations in the factory.

• Corporate specialists have developed best practices

for dust control on several levels, including equipment

design guidelines.

Golden rules for safety in Brazil

First aid stations in Poland

28

Employee enablement & engagement, diversity

and talent management

Research has shown time and again that both employee

engagement and a diverse workforce have a direct

and substantial impact on a company’s bottom line.

Zeelandia’s HR strategy therefore seeks to attract and

recruit a diverse pool of talent. We also want to ensure

they are highly enabled and engaged and receive the

support they need to make the most of their talents

and deliver the best possible results for the company.

That includes measures that guarantee a safe and

transparent workplace, such as a clear code of conduct

and robust mechanisms for reporting violations.

Local and corporate initiatives that have contributed

towards this goal in 2019 include the following:

• In Germany, employees are encouraged to invest in their

own professional development and to share what they

have learnt during training courses with colleagues.

An innovative learning app was also introduced, while

managers and sales representatives have received

resilience training to help them deal with pressures

and stressful situations. Other initiatives focus on

reintegration management after illness and on the

integration of (severely) disabled employees.

Knowledgefox

KnowledgeFox is an innovative learning software and revolutionary learning method.

It saves time and helps to build sustainable knowledge.

Based on research by Nobel laureate Eric Kandel, knowledge is acquired in small but regular steps.

Knowledgefox

We train employees on many topics such as

• Fire protection training (annually)• Occupational safety (annually)• Sales strategies• General data protection regulation (annually)

After successful finish, each employee receives a certificate.

Training management for external training

• Executives can suggest trainings for their employees to ensure continuous development

• The training can include all topics which the employee should be trained in

• To ensure knowledge transfer the employee summarizes the most important points after the training

Continuous development in Germany

29

• In Indonesia, our local HR department introduced

competency-based recruitment techniques and

invested in company branding to ensure its ability to

attract and recruit a diversity of talent. It also prepared

the implementation of performance development

plans, transparent job evaluations and launched a

training portal.

• In the Czech Republic, Zeelandia set up an employee

committee as a liaison between management

and employees and introduced special boxes for

employees to submit ideas and any complaints. In

Poland, too, we implemented a confidential reporting

system to raise any concerns on issues such as product

safety, integrity and quality.

Brazil

Great place to work

• In Brazil Emulzint Zeelandia again celebrated

International Women’s Day to highlight the presence

and importance of women in our organisation. At

Emulzint Zeelandia, women make up 20.84% of the

workforce, and out of that group 21% hold a leadership

position.

• In many countries employee engagement and

satisfaction surveys were carried out to measure

progress and identify areas for improvement. In

Greece, Zeelandia registered a score of 80% in the

Great Place to Work survey; Italy even registered a

score of 81%.

International women’s day in Brazil

Confidential reporting in Poland

30

Our achievements in 2019

Clean energy.

31

We actively contribute to the transition to renewable energy and reduction of greenhouse gases.

In order to reduce our ecological footprint, we seek to

reduce our greenhouse gas emissions, working towards

a carbon-neutral future. We do this by investing in

increased energy efficiency and by switching from

fossil to renewable energy sources where possible and

feasible. In this way, we contribute to several of the

UN’s Sustainable Development Goals (Affordable and

clean energy, Responsible consumption and production,

Climate action and Life below water).

Our strategic goals for 2023

• We reduce water, energy and fuel consumption.

• We use renewable energy, which will enable us to

reduce our carbon footprint to zero.

2019: Initiatives and achievements

Since 2012 we have been using Stimular’s ‘Envirometer

tool’ to measure our environmental impact in the focus

areas of energy and waste.

Reducing energy and fuel consumption

For years, we have collected and aggregated data on

individual countries’ ecological footprint. In 2019 we

took further steps in improving data collection and

reporting discipline, starting with the functions with the

largest impact: production, warehousing and logistics.

In monthly video calls the operations managers share

their results and improvements. A road map for further

harmonization of data has been agreed on (see p. 17).

Our carbon footprint currently amounts to 0.113 kg

CO2 per kg production. Major contributors to CO2

emissions are electricity (50.8%), fuel & heat (17.6%)

and freight transport (23.8%). These values are based

on consolidated data from many operating companies.

Because of differences in data definitions and KPIs they

should be viewed as estimates. The figures are based

on direct emissions (scope 1) and indirect emissions

(scope 2 and 3). Scope 3 data (indirect emissions other

than from energy purchased) vary widely due to

local differences and incomplete registration (since

many countries have outsourced their transport

32

and distribution). In 2019 our scope 3 reporting was

expanded to include (part of) our business travel, to

create awareness of the impact of air transport on our

overall footprint. In the coming years we will finetune

the scope and data registration.

0,090,080,070,060,050,040,030,020,01

02015 2016 2017 2018 2019

Fuels&heat Electricity Sum

CO2 emissions from fuels&heat and electricityin kg CO2 per kg production

• Electricity 50,8%• Fuels & heat 17,6%• Freight transport 23,6%• Business traffic 6,35%• Other 1,7%

This graph shows our CO2 footprint from energy

consumption, which is responsible for 68.4%

of our CO2 footprint. Data on energy is reliable

and can be consolidated. The conversion factor

used to translate energy consumption into CO2

emissions is derived from a Dutch standard (the

Milieubarometer). The standard conversion factor

increased 23% in 2018 due to the shift from natural

gas to coal usage in the national power plants. This

explains the rise in the CO2 emission graph in 2018.

33

Our energy consumption in 2019 totalled 50 million

kWh. Fuel and heat consumption decreased. Electricity

consumption was relatively stable in 2019, but over the

years we see a rising trend.

Our overall energy consumption tends to grow because

of growing production volumes, additional factories

in new countries and more automated production

lines and because of a structural shift in our portfolio

from powders to paste and liquid products (which are

We encourage individual companies to achieve year-on-year reductions in their energy use, carbon emissions, water consumption and waste production.

more energy-intensive). To offset this increase, we

encourage individual companies to achieve year-on-

year reductions in their energy use, carbon emissions,

water consumption and waste production. To help

them achieve this, they can count on the support of

corporate experts and adopt best practices from other

countries, which are shared in monthly evaluations

with operational departments as well as through the

network of CSR ambassadors that was set up in 2019.

2015 2016 2017 2018 2019

KWH

Tho

usan

ds

KZG Total Energy consumption35,000

30,000

25,000

20,000

15,000

10,000

5,000

ElectricityFuel and heat

Lineair (Electricity)Lineair (Fuel and heat)

2015 2016 2017 2018 2019

Purc

hase

d el

ectr

icity

Source of electricity100%

80%

60%

40%

20%

0%

Purchased electricity - green electricity Purchased electricity - otherPower generator Self generated electricity - solar

Self

gene

rate

d el

ectr

icity

2%

2%

1%

1%

0%

34

Local initiatives to reduce water, energy and fuel

consumption in 2019 include the following:

• Zeelandia South Africa replaced part of its roof with

fibreglass material to make the most of daylight and

ensure that lights need not be switched on during the

day.

• In Brazil, extra LED lighting was installed in the factory,

taking the total proportion of LEDs within the local

lighting infrastructure to 80%. This represents a total

decrease in energy consumption of over 130,000 kWh

per year.

• In Belgium, transport routes were optimized, resulting

in a substantial reduction of CO2 emissions.

• In the Netherlands 4 roof fans for ventilation were

replaced by modern and more efficient technology,

resulting in an annual saving of 20,000 kWh per year.

Other measures included the installation of more

LED lights, infrared camera screening of our historical

office buildings to find heat leaks, and training of

facilities’ staff to help them identify energy-saving

opportunities.

Clean, renewable energy

An important strategic goal for 2023 is to use only green

electricity. Currently, 29% of our electricity is derived

from renewable sources. In 2019 we started work on

two group projects which will substantially increase this

percentage.

The first project is aimed at covering the roofs of

our buildings with solar panels. This could raise our

percentage of self-generated green power from the

current 1.5% to over 20%. The business case for solar

installations depends on local power prices, subsidies

and financing costs, and may include partnerships with

third-party developers. A second project explores the

possibility of a long-term contract under which a

third-party investor would install a large windmill,

providing 100% green electricity for Zeelandia in the

Netherlands. By deriving power directly from a specific

windmill, this electricity would be truly green. The

findings from these two projects will be shared with

other countries to facilitate their transition to 100%

green energy.

35

It is important to stress that while these two projects

have been set up to accelerate our progress as a group,

many individual countries have already taken the

initiative to increase the share of renewables in their

energy mix. For example:

• In Brazil, our use of renewable energy sources

(certified) saved 170 tonnes of CO2 emissions.

• In Italy, Zeelandia uses only electricity from renewable

sources.

36

Zero waste Our achievements in 2019

37

Our objective is to reduce waste and to recycle as

much of the remaining waste as possible, in a way

that facilitates reuse in various applications. In this

way, we contribute to several of the UN’s Sustainable

Development Goals (Responsible consumption &

production, Climate action and Life below water). In

order to track our progress, we have been monitoring

group-wide waste production since 2012, using the

Envirometer tool (see p. 17).

Our strategic goals for 2023

• We reduce food waste in our value chain to less than

1% of our sales volume.

• We sort more than 90% of our waste for recycling.

2019: initiatives and achievements

We differentiate between two main categories of waste:

• Commercial waste, much of which can be recycled (for

example: food waste, wooden pallets, paper, metals)

• Hazardous waste: a very small category, which is taken

care of by specialist companies.

We recycle >90% of our waste.

In 2019 we achieved

encouraging results,

especially in the area of

food waste.

Hazardous waste 14 mtsAnnual average € 4K

20181614121086420

MTS

(‘00

0)

Euro

(‘00

0)

Hazardous waste7

6

5

4

3

2

1

0

Quantity Economic costs (euro)

2015 2016 2017 2018 2019

Commercial waste 66,000 mtsAnnual average € 120K

8

7

6

5

4

3

2

1

0

MTS

(‘00

0)

Euro

(‘00

0)Commercial waste

300

250

200

150

100

50

02015 2016 2017 2018 2019

Quantity Economic costs (euro)

38

The cost and environmental impact of

commercial waste are strongly linked to

how easily this waste can be recycled into

a valuable raw material. Sorting of waste is

therefore essential. In 2019 83% of waste was

sorted, resulting in 0.0037 kg of unsorted

waste/kg product (0.37%).

Sorted commercial waste consists of food

waste and non-food waste (such as paper,

plastic, wood and metals). Food waste is

generated in our factories and in the supply

chain (warehousing and transport).

2015 2016 2017 2018 2019

MTS

Composition of commercial waste3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

Sorted - Food

Unsorted

Sorted - Non-food

Linear (Sorted - Food)

Total waste5.552 MTS

Commercial waste5.535 MTS

Hazardous waste17 MTS

Sorted4.650 MTS

Unsorted885 MTS

Food1.940 MTS

Non-food2.710 MTS

Paper1.268 MTS

Plastic362 MTS

Other 122 MTS

Wood 685 MTS

Organic waste198 MTS

Metal75 MTS

39

In 2019 food waste fell by almost 30%, which meant we

have already achieved our strategic goal of reducing

food waste in our value chain to less than 1% of sales

volume. One measure we paid special attention to in

2019 was to optimizing production planning and stock

monitoring. Better planning reduces the number of

products with an expired sell-by date and the amount

of biodegradable waste caused by cleaning in between

production runs.

2015 2016 2017 2018 2019

%

Food waste as a percentage of sales volume

2 %

1,5%

1%

0,5%

0%

Production waste in relation to production volume

Non-food commercial waste consists of materials which

can be easily recycled, such as wooden pallets, paper

and metals. The volume of non-food waste is closely

linked to the volume of raw materials used.

In 2019 we set up a project (one of the eight strategic

group CSR projects) focusing on improved recycling of

our packaging materials, as a service to our customers.

In the Netherlands and Belgium, we tested a new type

of plastic-free packaging. The absence of plastic makes

the material much easier to recycle.

Added benefits of the new

packaging are that 20% fewer

chemicals are used during

production.

40

In addition to these group-wide initiatives, individual

countries initiated their own measures to reduce and

manage the amount of waste:

• In The Netherlands the amount of unrecycled waste

fell for the 13th year in a row. It is now only roughly 17%

of what it was in 2006. In 2019 the recycling rate was

improved by placing separate containers for paper,

PMD (plastic, metals and drinking cartons) and cups

(including paper swizzle sticks introduced in 2019).

• The Netherlands also registered a reduction in food

waste. In four years the figure has dropped from

around 2.4 million kg to 1.3 million kg. The oil and

fat from the fat trap was collected for recycling into

biodiesel.

• In 2019, our Brazilian subsidiary Emulzint Zeelandia

became a “Zero Aterro” company (Zero Landfill).

Organic and non-recyclable residues are now made

into specific materials that serve as a source of energy

for cement industry furnaces.

• Zeelandia South Africa established a new partnership

with a specialist company to improve recycling of

paper and plastic from its manufacturing site as well

as office paper.

• In Indonesia, powder waste is recycled by a third party

as an ingredient for fish feed.

Bak vol, geef het door aan facilities

Vanaf 20 juli komen er op centrale plaatsen in de Binnenstad en Zuidhoek centrale inzamelbakken bij o.a. dekoffieautomaten. De huidige prullenbakjes vervallen. Met de centrale inzamelbakken gaan we papier, koffiebekers en PMD (plastic, metalen blikjes en drankpakken) en restafval gescheiden inzamelen en afvoeren.

Doe mee! Want alleen samen gaan we onze MVO doelstelling, voor het terugdringen van afval halen

We gaan scheiden.

Collecting waste in seperate containers in The Netherlands

41

• In Ukraine, we reduced our waste output by storing

sunflower oil in bulk rather than in plastic bottles,

saving 13.7 tonnes of plastic waste each year. The

percentage of sorted waste overall increased from

76% to 84%.

• Poland achieved a substantial reduction in food waste

(of 41%) through a range of measures, including

more accurate dosing and sensors which indicate

the presence of product in buffer tanks (preventing

accidental filling with other product).

41% food waste reduction

13.7 tons of plastic waste reduction

A silo for bulk oil storage in Urkaine

42

Community support

43

Community support

In addition to the topics that have been prioritized in

our CSR strategy, our corporate responsibility includes

making a meaningful contribution to solving social

issues. Our Business Principles state that we want to

“fulfil the responsibilities to societies and communities

in which the company operates”. As an employer and

food manufacturer we are in an excellent position to

support some of the UN’s key Sustainable Development

Goals, such as eradicating poverty and hunger,

promoting public health and improving the quality of

education.

Community support in action

Instead of working with group-wide targets, each of our

subsidiaries is free to develop programmes that best

meet the needs of their local community. While some

subsidiaries support nationwide or even international

charities such as the World Wildlife Fund and Medicins

Sans Frontières, the emphasis is usually on local

organisations and charities.

For example:

• In Belgium, Zeelandia is a long-standing partner of

G-sport, a charity that wants to enable as many people

with a disability as possible to participate in sports.

• On the very last day of 2019, the area surrounding our

factory in Indonesia was flooded. Zeelandia responded

by handing out bottled water, snacks, cakes and

cleaning agents to residents whose homes had

been flooded.

CSR Activity Report 2019

CSR Management Zeelandia Indonesia

CSR Activity Report #1/Zeelandia Indonesia/Indonesia CSR Ambassador

UPDATES AND NEWS

In the New Year Eve 2020, most areas of Jakarta and its surrounding areas were flooded, including the Tangerang area around the factory. This flood affected dozens of houses around the factory

Responding to this, Zeelandia Indonesia shared to residents affected by flooding. We provide bottled water, snacks, cleaning agents, and cakes made from Zeelandia products. These goods are distributed by our General Affair Team (HR Function)

The cakes are made from our product that available at R&D and Quality, Baking using the equipment they have, and prepared by R&D and QC staff in collaboration with Marketing Team.

Each of our subsidiaries is free to develop programmes that best meet the needs of their local community

44

Donating food and sharing profits

As a food manufacturer, Zeelandia is in an excellent

position to help people in deprived communities by

donating food. In various countries Zeelandia has

established a close cooperation with local food banks.

• Emulzint’s Pao Amigo- mix has been

successfully raising money for a charity that

helps people with disabilities to achieve

their full potential. Since the product’s

launch it has raised funds for over 7,000

physiotherapy sessions.

• In Belgium, the Netherlands and Italy,

Zeelandia donates part of the proceeds of

the Panda bread mix to the World Wildlife

Fund. Total donations over the last 30 years

amount to more than 4 million dollars.

Over 7,000 physiotherapy sessions

45

Helping the next generation

Many Zeelandia subsidiaries have decided to focus their

efforts on promoting the well-being and professional

development of young people, especially those with

special needs or from disadvantaged backgrounds. For

example:

• Zeelandia East Africa supported a rehabilitation centre

which helps street girls to start a new life, away from

the streets and abusive and exploitative people.

For the safety of the children and to protect them from exploiters, photographing them was not allowed.

This gave us a chance to interact with them and their caregivers on a one on one basis and it is our hope that we forged a lasting relationship with them and from this, establish ways to offer long term solutions to some of the challenges they are faced with.

• In Slovakia, Zeelandia support a three-day festival

for children from local schools and foster homes

and for disabled people, and participated in the local

Community day in Rozhanovce.

46

• Zeelandia South Africa again sponsored the Brownies

& Downies initiative in Cape Town, by providing

free supplies to bake bread, rolls and brownies for

customers. We also donated money to buy a vehicle to

safely transport the young workers home.

• In Germany, Zeelandia again sponsored technical

colleges, gave lessons for students preparing for a

bakery degree and sponsored the annual BakerMaker

Award.

47

Our ambitions for 2020 and onwards

Looking ahead

48

Our CSR strategy describes our targets for the next few

years and the way in which we want to achieve them.

COVID-19

The COVID-19 pandemic has presented us with many

challenges, also in the execution of our CSR programme.

Many local companies had to furlough part of their

staff, including several CSR ambassadors. While this

was an important step to safeguard the company’s

health as well as their own future job security, it meant

a temporary stop to their CSR activities as well.

Our first priority throughout the pandemic is to

safeguard the health of employees. In their regular

video meetings, the remaining CSR ambassadors

shared experiences on the mental effects of the

crisis and discussed the beneficial side-effects and

opportunities of changed working conditions, such as

increased individual responsibility and the setting-up of

international virtual teams.

The new business environment inevitably forced us

to prioritize, which has led to some delays in the CSR

programme, and the long-term effects of the COVID-19

crisis are still unknown. Yet the strategic importance

of CSR has not changed. We stand by our overall CSR

strategy and objectives, even as we will have to be

flexible in its execution, which will require continuous

alignment with the changing business environment

and new developments around COVID-19.

In short: despite the current challenges we remain

committed to the initiatives set out in our action plan

for 2020 and beyond:

Better for consumers

In 2020 we will launch new food concepts aimed at low-

calory and plant-based innovations. A new team to be

formed in 2020, involving R&D, Marketing and several

country participants, will use these concepts to develop

specific products for the European market. Our goal is

to launch at least one new healthy product concept per

year from 2021. We will also roll out existing products

with a nutritional claim in more countries, while R&D

will develop a toolkit for plant-based proteins. In the area

of food safety, we will carry out 10-15 risk assessments at

49

existing operations and update our ingredient policies to

stay ahead of upcoming developments.

Better for employees

‘Healthy working conditions’ is one of the eight group

projects for 2020 (see p. 13), in which countries and

corporate functions will work together to accelerate

progress. The CSR ambassadors will play a vital role in

this, by sharing experiences and best practices, drawing

on more than 100 local initiatives. Experts will be asked

to define best practices on safety, dust, heavy lifting,

creating engagement and CSR communication. Corporate

operations and R&D have set up country visits to assess

risks (which because of the COVID-19 crisis take the form

of virtual meetings until physical visits are safe and

responsible) and assist in local continuous improvement

programmes.

In 2020 Corporate HR will also continue the

implementation of HR standards (PDP & Bonus system) in

the group and will design and develop a code of conduct

in which our leading Business Principles are laid down and

clarified.

Zero waste

As a group, we will share experiences and join forces to

further reduce our waste production, with each individual

country being challenged to reduce its food waste volume

by 10-20%. We will also increase the amount of waste

that is sorted, to enable better recycling of our waste, to

contribute to a more circular use of materials.Two other

group-wide projects will focus on reducing the amount

of plastic used in an office setting, and on rolling out

recycle-ready packaging in more countries, based on the

experience gained in the Dutch-Belgian pilot project.

Clean energy

In 2020 we will finalize the business model and contracts

for purchasing green electricity in the Netherlands and

share the lessons learnt to support other countries in their

transition to 100% green electricity. We will also develop

solar projects by investing in solar panels ourselves, or

by providing a third party with the roof space for solar

installations and signing contracts for purchasing power

generated by them.

As to energy consumption, our goal for 2020 is for

individual countries to improve monitoring and reporting,

50

and to take specific measures to reduce their CO2

footprint. Key areas we will focus on include latent

energy use (at night and in the weekend), reducing peak

demand for electricity and saving fuel by optimizing

logistics (both within individual countries and between

Zeelandia facilities). Such efficiency gains are not only

expected to reduce our carbon footprint, but also to

generate overall cost savings in production, warehousing

and distribution.

Sustainable sourcing

In 2020 we will describe our demands for ethical and

sustainable sourcing in a code of conduct for suppliers.

We will update our palm oil policy to stimulate our

suppliers to be more transparent on their role in the

supply chain and to actively support sustainable projects

in countries where palm oil is grown and processed.

Our goal is to raise the percentage of segregated

sustainable palm oil we use in Europe from over 95% to

over 99% in 2020. Outside Europe, our intention is to

assess our volume requirements and local availability

of sustainable palm oil in 2020, in preparation of

conversion to mass balance sustainable palm oil.

Community support

Our local operations will continue to use their experience

and capabilities to support local communities and

involve employees in these projects.

Governance

In 2020 we will take further steps to integrate CSR into

our daily work. and into the management cycle (target

setting, planning, progress reporting and acting on

deviation from the plan). Starting with the company’s

top management, this approach will be cascaded to

every function and every department.

In parallel we will upgrade our communication strategy,

to inform our employees and other stakeholders and

create engagement for change. Our CSR ambassadors

will play a crucial role by involving the local teams and

sharing experience throughout our global network.

A code of conduct and whistleblowing policy have

been drafted and will be rolled out. The controlling

department will work on standardisation of KPIs and

more structural reporting of CSR-related results.

51

Royal Zeelandia Group Fonteine 2 | 4301 AG Zierikzee | The Netherlands | CSR@zeelandia.com | www.zeelandia.com