Corporate Social Responsibility report
2014 December 2014
It is deeply embedded in the mindset of System
Frugt that we want to be a social responsible
corporation – not only in words but also in deeds.
CEO – Jan Gerber
Corporate Social Responsibility
Preamble
Statement from our Chief Executive Officer (CEO)
It is deeply embedded in the mindset of System Frugt A/S that we want to be a social responsible corporation –
not only in words but also in deeds.
Obviously, we need to keep our own house in order but we are also responsible for the behavior of our partners
in our supply chain. We are therefore conscious about the partners we do business with and consequently we
have chosen to comply with the Code of Conduct set up by the Business Social Compliance Initiative (hereafter
BSCI). Through BSCI, which we joined in 2013, we require that our suppliers comply with the principles in the
Code of Conduct, which among others ensures proper conditions for the workers as well as contribution to a
sustainable environment. As an extra part to BSCI, System Frugt prioritize people and health. In summary System
Frugt’s CSR focus can be summarized in three overall areas:
-
Working Conditions
People & Health
Environment
Given the notion that we operate in the food industry, and we rely on Mother Earth as our supplier, we find it
natural to place an additional focus on how we can contribute to a sustainable environment. These additional
CSR related activities can be expressed in a single headline, which permeates the focus in our appertaining
actions:
“We give back value to our supplier - Mother Earth”
Our board fully supports our initiatives in achieving our CSR targets within every principle of the Code of
Conduct. Further we will summarize the progress against each target on a yearly basis in connection with the
preparation of our annual report. We are committed to embed the BSCI and other CSR related activities in our
every-day business policies.
System Frugt A/S
Jan Gerber
CEO
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Corporate Social Responsibility
Table of Content
Preamble................................................................................................................................................................. 1
1. Introduction to System Frugt A/S ..................................................................................................................... 3
2. Corporate Social Responsibility – internally and externally ............................................................................. 4
3. Corporate Social Responsibility – additional Earth Control initiatives ............................................................. 6
4. Corrective action on alerts ................................................................................................................................ 6
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Corporate Social Responsibility
1. Introduction to System Frugt A/S
System Frugt A/S was founded in 1990 by the two brothers Jørgen- and Henning Danielsen. The company is
headquartered in Tilst, near Aarhus in Denmark, with facilities covering more than 20,000 m2. In addition to this
System Frugt is also the proprietor of System Multifood – a production facility in Izmir, Turkey and Crispo in
Tårs, Denmark.
The first decade of System Frugt’s existence, the company solely based its business on fresh fruits and
vegetables but as the company gained a stronger foothold in the retail business it expanded its portfolio to
include dried fruits and nuts as well. In 2013 the portfolio of product was further extended to include handcooked potato chips as System Frugt acquired Crispo in Tårs, Denmark.
System Frugt holds a variety of certifications including BRC (Grade A), BSCI and KRAV. As a company we are
dedicated to comply with international standards to sustain a high level of standard in our entire supply chain.
System Frugt’s products are today sold in all of the Nordic countries and the Nederland through established
retail chains. The revenue from foreign markets are increasing year by year and counts today for more than
40%. The products are sold under private labels as well as under System Frugt’s own brands - Earth Control and
Delicata. The group revenue is close to DKK 650 mio. (€85 mio.). System Frugt employs more than 250 people
from close to 15 different nationalities.
System Frugt was privately owned until 2010 when Odin Equity acquired 80% of the company and today Jørgen
Danielsen still owns 15% of the System Frugt group.
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Corporate Social Responsibility
2. Corporate Social Responsibility – internally and externally
As mentioned in the preamble, System Frugt is committed to run a social responsible business through internal
as well as through external activities (BSCI).
Internal activities
We have initiated a number of internal activities that supports the Environment and People & Health. For each
of these two areas, targets have been set:
Area
Target
Achievements
(2014)
Yearly support minimum 3 external
project related to the heath/social focused
areas.
Supports Danish
Children charity
initiatives such as
”Børns vilkår” and more
internal initiatives such
as free fruit and sport
events
People & Health
Employee program covering healthcare
insurance, free fruit and healthy breakfast
& lunch.
GMO free
No products containing AZO-dyes
Energy saving program will be set in 2015.
Target of 3 % reduction year-on-year per
kg finished product from 2013 baseline.
Packaging policy;
Reduce our usage of packaging material
(primary and secondary) by 2% per kg –
year on year
Environment
Freight reduction program
Reduce own CO2 emissions by optimizing
the dimensions of shipment units to
customers by 5% in 2018 (from baseline
2014)
Reduction of waste in System Frugt.
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Achievements
(2013)
Supports Danish
Children charity
initiatives such as
”Børns vilkår” and
more internal
initiatives such as
free fruit and sport
events
100%
100%
100%
100%
100%
100%
Not fulfilled.
-
Reduced bag-size on
selected customer
assortments.
-
Changed own
transportation setup in
Dec. 2014 to newest
truck environment
technology and
optimized route
program. Target
reachable in 2016.
Cooperation between
System Frugt and
Randers Rainforest,
which collect fruit and
vegetables on a weekly
basis for their animals.
Furthermore a OEE
project have been
initialized in 2014 with
target of reducing waste
with 0,5%p year-onyear from 2015.
-
-
Corporate Social Responsibility
External activities
Suppliers
By also including our network of external partners/suppliers in our CSR policy, we aim high and reach wide. As
mentioned in the preamble System Frugt is conscious about the selection of suppliers we corporate with. We
have therefore chosen to endorse the BSCI Code of Conduct, which obligates System Frugt 3½ years after
joining the BSCI to ensure that 67% of the supplier/volume in risk countries should be included in the system
and 33% of the suppliers/volume in risk countries should show a result of “good” or “improvement needed”.
We have not limited ourselves and has therefore invited all of our suppliers to participate. This will be a
continuously focus and we will not reduce our effort on this matter before reaching our targets. Therefore we
have also set our targets in 2017 higher than the BSCI standard are demanding.
Area
Target
BSCI
Work conditions
People & Health
Environment
80% of our purchased volume from
suppliers from third world countries to
comply with BSCI by the end of 2017.
40% of our purchased volume should be
from supplier with an audit result showing
“good” or “improvement needed” grade by
the end of 2017.
Achievements
(2014)
Achievements
(2013)
63%.
N/A
N/A
The 11 principles in the code of conduct is:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
The rights to freedom of association and collective bargaining
No discrimination
Fair remuneration
Decent working hours
Occupational Health and Safety
No child labour
Protection of young workers
No precarious employment
No bonded labour
Protection of the environment
Ethical business behavior
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Corporate Social Responsibility
3. Corporate Social Responsibility – additional Earth Control initiatives
Earth Control
System Frugt has in 2014 launched a new brand called Earth Control. As the label indicates, “Mother Earth” –
the nature plays a significant role to the brand. We acknowledge that we rely on the generosity and quality of
the nature, whom we regard as our supplier. Therefore we want to ‘give back to our supplier’ by doing,
participating, sponsoring various types of project that all aim at support the building of a sustainable
environment.
Effectively, Earth Control has joined a partnership with WWF Verdensnaturfonden where together with whom
a number of activities will be initiated during the coming years. In 2015 a campaign towards the Danish
consumers will raise funds to the work WWF is doing to sustain the forests around the world.
Area
Additional
environment
activities for
Earth
Control
Target
Achievements
(2015)
Use min. 1,0% of our EAT on environment
support organizations who support the
environment (ex. WWF).
Status, march ’15: on
track
Faceout of palm oil in all Earth Control
products by end 2015, and where this is not
possible we will only use certified palm oil
(RSPO).
Extend the organic range of Earth Control to
obtain a share of sales in 2018 by >10% of
total Earth Control nuts and dried fruit sales.
Share in 2014 was below 2%
Launch of full fair trade nuts and dried fruit
premium assortment under the Earth
Control brand latest by 2018
Launch EC Environmental Program in
addition to BSCI and source 50% of volume
in 2020 by suppliers part of ECEP
Status, march ’15: On
track
Achievements
(2014)
Target achieved
through Corporate
sponsorship (3 year
agreement) and
Christmas Charity at a
value of 30.000 DKK
EC Chips portfolio will
be moved from Palm oil
to sunflower oil by 1st
January 2015
2015 target:
Launch of EC organic in
Sweden
Launch of EC organic
in Denmark
In progress. Full launch
estimated to be ready in
2017.
N/A
- The individually supplier initiatives of
ECEP will be suspect to dialogues with
key suppliers
4. Corrective action on alerts
Corrective actions:
In our 2014 report we have one prioritized area which is “red” according to our CSR targets. The Energy saving
program have not been initialized on a satisfied level in 2014 as planned. This will have our fully attention
throughout 2015.
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