sustainability report 2015 · dairy products – milk, cheese, yoghurt ... consumer the dairy...

Sustainability Report 2015

6PARMALAT Sustainability Report 20155 PARMALAT Sustainability Report 2015

CONTENTS

We are Parmalat Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Great Brands, Great People, Great Governance . . . . . . . . . . . . . . . . . . . . . . . . .6

Vision, mission and values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

CEO Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Sustainability at Parmalat Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Stakeholder Engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Key Sustainability Issues and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . .14

Food Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Ingredients Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Milk Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Our People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Safety and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Parmalat Australia in the Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

About this Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

GRI Content Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

The company is committed to playing a daily role in the health and well-being of consumers throughout the world, via the provision of nutritious dairy products – milk, cheese, yoghurt and other soft foods and beverages .

In Australia, we are a dairy industry leader, with 13 manufacturing (and distribution) sites, 82 depots and 3 warehouse distribution centres across six states and territories . With headquarters in South Brisbane, Queensland, Parmalat Australia employs more than 2,000 people, producing in excess of 800 million

8PARMALAT Sustainability Report 20157

WE ARE PARMALAT AUSTRALIA

PARMALAT Sustainability Report 2015

litre/kilograms of dairy products every year . Pillar brands such as Pauls, Oak, Ice Break and Vaalia provide Parmalat Australia with a deep national footprint for growth and prosperity .

GREAT BRANDS, GREAT PEOPLE, GREAT GOVERNANCEParmalat Australia is a pivotal contributor to the global Parmalat Group, a leader in the production and distribution of foods that are essential for everyday wellness: milk, dairy products and fruit beverages .

With a strong focus on growth and innovation, we take enormous pride in our brands and in our people . Our employees are the heart and soul of Parmalat Australia and each and every one of them adds to the continued development of our organisation and growing market dominance with our brands . We are committed to providing our customers with the highest level of customer satisfaction and quality of product .

With oversight from Lactalis, our French parent-company, Parmalat Australia’s Executive Team has day-to-day responsibility for the governance of the business . Our Code of Conduct applies to all employees .

Parmalat Australia Pty Ltd (Parmalat Australia) is a wholly owned subsidiary of the listed Italian company Parmalat SpA, which in turn is part of the Lactalis Group, the world’s largest producer of dairy goods.

VISION, MISSION AND VALUES

Our Values provide a clear framework for how we go about pursuing our corporate goals . We rely on three key platforms to guide behaviour and thinking:

Parmalat Australia’s vision and mission

Vision:Everyday consumers will

satisfy their needs with a tasty and nutritious Parmaat

beverage or dairy product .

Mission:All Australian and Asian

consumers recognise the outstanding quality and value

of Parmalat’s products .

10

Parmalat Australia plays a key role in the Australian Dairy Industry. We believe food safety and quality standards are non-negotiable. Integrity and transparency are vital to our success. Parmalat Australia’s great brands are instantly recognisable and trusted across Australia, reflecting 80 years of careful investment and expansion in the dairy industry.

Parmalat Australia is committed to develop our people through training and leadership programs . During 2013/2014 we commenced our leadership program using Life Styles Inventory tools . These tools enable us to effectively measure the thinking and behaviour of our leaders whilst working towards a constructive leadership culture to support sustainable people performance .

Parmalat Australia’s corporate sustainability program continues to support our community . In 2015 we maintained our support of Murdoch Children’s Research Institute, Ronald McDonald House, St . Vincent de Paul Society and Foodbank .

This report describes in detail how we are progressing in key areas of our sustainability program and we are looking forward to continuing this journey in coming years .

Craig Garvin CEO, Parmalat Australia

Parmalat Australia has positioned itself in the market for sustainable growth through its aggressive investment strategy, brand investment and being an employer of choice . In the past 12 months Parmalat Australia has acquired Harvey Fresh in WA, Harvey Fresh Juices in NSW, and Longwarry Food Park, South East of Melbourne . These investments add scale and long-term efficiencies to our existing Parmalat Australia business, as well as securing the future of the employees in the towns in which they operate . Each of these businesses add significant export capability .

Key pillars in Parmalat Australia’s approach to sustainability are resource management (both within our business and at farm gate) and people development .

Our relationship with our farmers is key to our shared success . During 2014 Parmalat Australia has employed a dedicated Sustainability Manager to work directly with farmers and industry bodies to create profitable, sustainable farming practices into the future .

CEO MESSAGE

CRAIG GARVIN Chief Executive Officer

Parmalat Australia

PARMALAT Sustainability Report 20159 PARMALAT Sustainability Report 2015

Our commitment to sustainability extends across every aspect of our business, commencing with the sourcing of raw materials and the welfare of the animals, to our production process, and finishing with the supply and distribution of our products to our many and varied business partners and stakeholders . Along the way, these principles also apply to our people, (their development and safety), the environment, and more broadly, the communities in which we operate .


SUSTAINABILITY AT PARMALAT AUSTRALIA


In the complex world of food production, where food safety and quality standards are non-negotiable, a commitment to integrity and transparency is vital for success . These values guide Parmalat Australia’s thinking at every level . Our rigorous approach has contributed to the impeccable reputation and standing enjoyed by our brands, many of which are instantly recognised and admired across the country .

We also understand that all resources need to be used wisely, with one eye kept on the future .

Our resource management activities include:

> Water-intensity reduction programs for our manufacturing sites and the identification of on-farm water management initiatives .

> The annual delivery of millions of milk containers around the country, highlighting the importance of efficient logistics, handling packaging materials efficiently and disposing of waste in a responsible manner through effective recycling programs .

> Energy efficiency programs across the business in response to climate change and energy price fluctuations .

Production of feed for cowsThe dairy supply chain begins with growing crops on the dairy farm and purchased from other farmers

Milk ProductionDairy cows are housed, fed and milked on dairy farms across the country

Milk TransportMilk is transported from farm to Parma-lat via an insulated tanker truck

ProcessingMilk is processed in one of Parmalat’s many manufacturing facilities across Australia. At this point other required ingredients are added

PackagingProducts are packaged in paper boards and plastic containers which are designed to keep dairy products fresh and clean.

DistributionParmalat and 3rd party trucks distribute products from 14 major distribution centres and numerous regional milk depots to retail outlets across the country

RetailMilk and other dairy products are available at retail outlets across the country

ConsumerMilk and milk products deliver essential nutrients to children and adults, promoting good health and well being throughout all stages of life.

Production offeed for cows

Milk Production

Milk Transport

Processing

Packaging

Distribution

Retail

Consumer

Production offeed for cows

Milk Production

Milk Transport

Processing

Packaging

Distribution

Retail

Consumer

The dairy supply chain begins with growing crops on the dairy farm and purchased from other farmers.

Dairy cows are housed, fed and milked on dairy farms across the country.

Milk transported from farm to Parmalat via an insulated tanker truck.

Milk is processed in one of Parmalat’s many manufacturing facilities across Australia.

At this point other required ingredients are added.

Products are packaged in paper boards or plastic containers which are designed to keep dairy products fresh and clean.

Parmalat and 3rd party trucks distribute products from14 major distribution centres and numerous regional

milk depots to retail outlets across the country.

Milk and other dairy products are available at retail outlets across the country.

Milk and milk products deliver essential nutrients to children and adults, promoting good health

and well being throughout all stages of life.

DAIRY SUPPLY CHAIN

Parmalat Australia is an active participant in the food industry, producing dairy products for consumers across Australia and into the Asia-Pacific region.

Stakeholder Group Mechanisms for Engagement and Communication

Frequency of Engagement Issues Raised

Employees Employee Engagement Survey

LSI Training and Leadership program, Parmalat Australia Intranet, CEO Blog, Safety Committees and Joint Consultative Committees

Yearly

2 yearly Daily Weekly and as required Monthly

Senior Leadership Future Vision and People Focus

Learning and Development, Career Opportunities, Individual leadership development, Health and Safety

Consumers Advertising, marketing and promotions, labelling, websites and social media, press releases

Consumer Complaints Department (Contact details on website)

Daily and constant Nutritional issues Additives and ingredient issues

Suppliers Regional meetings Quarterly newsletters Best Practice Program Supplier Guidelines Code of Conduct Food Safety Audits

Twice per year 4 times per year 4 times per year Annual Annual Yearly

Price negotiations

Tanker issues

Milk quality

Service

Local communities Letter box drops As required for site related issues such as odour

Odour issues

Charitable organisations Donations, Employee volunteer activities, Partnerships with Nonprofits ie: St Vincent de Paul Society

Ronald McDonald House – Supply refrigeration and milk and yogurt

Fundraising golf day

Murdoch Children’s Research Institute yearly cash donation

Logo on Vaalia yoghurt packaging and sponsorship of the September stepathon

Employee Volunteer Days – weekly

Weekly Yearly

Monthly for yoghurt and yearly for Stepathon

Financial investment

Employee volunteering

Industry Groups Trade association memberships, Industry forums eg: Australian Food and Grocery Council, Dairy Australia, Dairy Food Safety, Association for payroll Specialists (TAPS), AHRI, NAWO

Australian Dairy Producers Federation

Routine scheduled meetings

Quarterly

Food safety

Supply chain

Industry processes


STAKEHOLDER ENGAGEMENT

Parmalat Australia understands the importance of communication with and listening to our broad groups of stakeholders. The table lists some of our key stakeholders and the ways in which we engage with them.

13 PARMALAT Sustainability Report 2015

16

FOOD SAFETYParmalat Australia’s commitment to food safety and quality is vital to our success . All of our sites have a HACCP Food Safety System based on Codex Alimentarius . A cross functional team evaluates each step of the process from ingredient receival to customer delivery, assessing each potential biological, physical, chemical and allergenic hazard that would impact on food safety . Each recognised hazard is risk assessed and control measures reviewed .

Controls are in place to monitor potential hazards closely and stay in the limits of compliance . If necessary, corrective actions are put in place if a process deviates from allowable limits .

Critical control points are in place throughout our manufacturing process to prevent food safety hazards .

Our manufacturing sites are third party certified to the following standards;

BRC – Global Food Safety Certificate

ISO 22000 – Management Systems

Coles Supplier Requirements

WQA – Woolworths Quality Assurance System

AQIS – Food Export Registration

A third party auditor assesses our Food Safety Systems (HACCP), Quality Management Systems and approach to Product Control, Process Control and Personnel Management .

All Parmalat Australia sites met the strict standards required to retain a Global Food Safety certification in 2014 .

The following sections of our Report outline our understanding, commitment and progress in addressing these challenges for shared success . The topics were identified through a review of our business strategy, objectives and targets, legislative requirements, supply chain initiatives and stakeholder feedback as follows:

> Food safety

> Ingredients sourcing

> Milk supply

> Resources management

> People development (including engagement and diversity)

> Safety and health

> Parmalat Australia in the community .


KEY SUSTAINABILITY ISSUES AND OPPORTUNITIES

Our key sustainability issues are those that are critical to our business, our supply chain and to Australian consumers.


INGREDIENTS SOURCINGAt Parmalat Australia sustainability starts with the ingredients and materials we use to make our iconic range of quality products . We believe to make great products you have to start with great ingredients, sourced from suppliers who share our ethics and beliefs in sustainable sourcing .

All suppliers are assessed using a range criteria to determine their business practices, ethics and values . We prefer to work with suppliers that share our commitment to environmental management, food safety and ethical supply . We work collaboratively with our approved suppliers to provide at least one added-value project every year . These opportunities include re-engineering, process improvements, ethical material sourcing, the provision of energy efficient alternatives or use of recycled materials, sharing of forecast data and co-product development .

Our products are palm oil free . Where palm oil based emulsifiers are used, these emulsifiers are RSPO (Round Table on Sustainable Palm Oil) certified .

We are constantly working with our supply partners to reduce the total supply chain footprint in terms of resources, impact and waste . Finding new and inventive ways to reduce packaging, improving transport efficiencies and utilising more recyclable and reclaimed materials are some of the way we contribute everyday . Read more in Sustainable Packaging .

MILK SUPPLYOur commitment to Australian milk supply has direct and indirect economic benefits to rural communities . Parmalat Australia currently has over 650 dairy suppliers across the nation, from whom we purchase almost 1 billion litres of milk annually . While our milk pricing structure is subject to market forces, the average Parmalat Australia farm supports 3 .2 people .

We encourage transport companies to tender for our business on a bi-annual basis, spreading the opportunity across a wide range of regional Australian businesses . We utilize various transport companies, from major industry leaders to local regional operations .

Parmalat Australia Milk Supply is investing heavily in its approach to sustainability . In 2014 we employed a dedicated resource to work directly with farmers and industry bodies on sustainability performance improvements . Our Farm Services team is working with farmers on a collaborative program that aims to meet industry standards and enhance the profitability of farmers .

In 2015 we will launch the Parmalat Australia Best Practice Program (BPP) . Working in conjunction with farms that supply to Parmalat Australia, the BPP will enhance our shared ability to monitor and manage food safety, quality, environmental impact and ethics in our dairy supply chain . The BPP provides a framework to assess, identify and assist in implementing

1817 PARMALAT Sustainability Report 2015 PARMALAT Sustainability Report 2015

on-farm improvement opportunities . Targets have been developed with our farmers to meet our compliance obligations and the expectations of our customers and consumers . We will work with progressive farmers to demonstrate good practice in specific areas and, with consent, share findings with all participants in the BPP . Parmalat Australia will also consider subsiding farmers to achieve these goals .

Our BPP draws from the Dairy Australia framework that promotes the following objectives:

1 . Farm ProfitabilityProfitability requires farms to review both sides of the margin equation (costs and returns) . Producers are encouraged to understand the main financial drivers in their business and look at maximising margins to drive profitability . It’s not always about price, but key focus areas to achieve sustainable returns at farm are: understanding seasonality in milk supply to improve yields and working collectively in buying groups with

Parmalat to lower purchasing costs on farm in many categories such as energy, feed and fertiliser .

2 . Product QualityMilk quality affects the entire value chain and ultimately drives consumer satisfaction . Dairy Australia and Parmalat will assist in staff training in milk quality and encouraging suppliers to attend other training courses such as Cups on, Cups off .

3 . Supporting CommunityDairy farming occurs in communities, therefore producers need to understand their impact on the local community either through local council regulations, landcare initiatives and pest management . The Parmalat approach involves sharing best practice ideas and processes in many areas impacting environment like pasture, water, waste etc .

4 . Investing in peoplePeople will always be part of dairy, therefore managing people on farm is important . Dairy Australia provide an Employment Starter Kit (ESKI) to

assist the farmer in understanding employment contracts and handling staff issues such as awards, payroll, safety and leave entitlements .

5 . Caring for AnimalsFarmers understand that their animals are vital part of their business . We will be encouraging producers to review the latest information on animal health and wellbeing and ensure on farm practices align with consumer and our own expectations .

Once implemented, all farms participating in the BPP will be audited on a regular basis .


WASTE DISPOSALReducing waste to landfill has been a focus for Parmalat Australia for many years . While it is not yet possible to remove all solid and liquid wastes from our dairy operations, we have reduced our waste to landfill by 90% over three years by working with our waste contractors to use recycling and composting facilities . This recovery program has been sustained through our investment in compactors, recycling containers and employee training .

In 2014, we produced 20,000 tonnes of wastes, recycled 18,500 tonnes and sent 1,500 tonnes to landfill . Less than 5% of our total waste is disposed off site as hazardous waste .

Parmalat Australia continues to explore other recycling opportunities . Our latest example is the partnership between our operations in Clarence Gardens (South Australia) and SITA . The waste from this site is being reused at a process engineering facility as a heat source . As a result the site is achieving 100% of diversion of waste from landfill .

ENERGY EFFICIENCY AND GREENHOUSE GAS EMISSIONSThe dairy industry is a large consumer of electricity and natural gas, both emitting carbon dioxide (C0

2) to

the atmosphere . Parmalat Australia uses natural gas as a heat source to pasteurise milk and to ensure a safe product for our customers . Electricity is used for the refrigeration system to provide a chilled and preserved milk product .

Reducing carbon emissions by optimising existing equipment has been a focus over the years . We have carried out energy audits at all manufacturing sites to identify opportunities for energy savings . The projects are varied and range from automation of refrigeration equipment, waste heat recovery and insulation, variable speed drive on compressors and pumps, lighting fitting upgrades, solar panel installations, good maintenance and energy saving practices .

Sites are measured and report on intensity ratios for natural gas and electricity per volumes of production . Our overall energy intensity was 1154 gigajoules (GJ) per kiloton (kt) in 2014 . Energy projects implemented late in the reporting period are expected to show an improvement in our energy intensity next year .

RESOURCES MANAGEMENTWe aim to use material resources efficiently to reduce our environmental impact and save money .

SUSTAINABLE PACKAGINGParmalat Australia has adopted the Australian Packaging Covenant (APC) guidelines and has built a successful strategy to optimise consumer packaging . The design of our existing and new packaging makes better use of resources and reduces environmental impact without compromising product quality and safety .

Parmalat Australia has been a signatory of the APC for the past 5 years . Over this period we have improved our performance by working collaboratively with suppliers and stakeholders to deliver sustainable solutions to meet our customer expectations . Amongst other criteria, we highly regard suppliers who can demonstrate their own involvement with the APC .

Parmalat Australia’s 2014 APC Report saw an improvement in our scoring from 2 .2 in 2012 to 3 .8 in 2014 out of 5 . The areas of significant improvements were in procuring packaging from recycled materials and the reduction in consumer littering through product design .

A great example in 2014 was the introduction of recycled resin into our milk bottle blow moulding process . We are now purchasing plastics beads that contain 15% recycled material .

INNOVATION TO IMPROVE PACKAGING DESIGNWe are constantly looking at new ways to reduce our environmental impact through packaging design and modification .

Our Research and Development team have assessed new and existing packaging using the Sustainable Packaging Guidelines (SPG) . This process is now a standard process for new and redesigned packaging .

Using these guidelines we have been able to improve our packing in the following areas in 2014:

> Reduction of the thickness of plastic labels

> Standardisation of plastic bottles

> Use of recycled cardboard in outer packaging

> Improve labelling to reduce littering and encourage recycling .

Recycled wastes in 2014 (in tonnes)

Cardboard 500 t

Liquid wastes 16,000 t

Paper 400 t

Plastic 500 t

Energy Type Volume GJ Factors NGER

Unit

Natural gas 450,878 .5789

Liquified petroleum gas (kL) 818 .844 21,044 .2908 25 .7 GJ/kL

Gasoline - transport (L) 377,037 .0956 12,894 .66867 34 .2 GJ/kL

Diesel oil - transport (L) 4,962,922 .4 191,568 .8046 38 .6 GJ/kL

Ethanol for use as fuel (L) 7,268 .75 170 .08875 23 .4 GJ/kL

Petroleum based oil (L) 6,190 .0 240 .172 38 .8 GJ/kL

Electricity (kWh) 114,807,869 .1 413,308 .3286 3 .6 GJ/MWh

Total energy consumption 1,090,105.00

Scope 2 101,315 t CO

2e

Scope 1 39,345 t CO

2e

Greenhouse gas emissions FY2014

Energy consumption FY 2013/14


1 . Lidcombe Boiler House, Blowdown Heat Recovery, and Burner Control .The blowdown heat recovery was achieved by installing a heat exchanger on the exhaust of the blowdown and recover the heat to pre heat the make up water . The burner control looked at installing a probe to measure oxygen levels in the exhaust stack and control excess air accordingly .

2 . Lidcombe Utilities Sub-MeteringThe inability to measure energy consumption is the first step to be able to identify and control inefficiencies . The site has been fitted with 19 electricity meters to measure refrigeration and air compressors, packaging moulding machines, large equipment on the processing floor . We also installed 5 steam, natural gas and compressed air flow meters .

The data collected is used to create efficiency ratios that are used daily by the site to measure utilities efficiency . This project won a National Energy Efficiency award 2014 organised by the Energy Efficiency Council, in the category of Best Industrial Energy Efficiency Project 2014 .

3 . Lidcombe Refrigeration System Upgrade, Variable Head Pressure Control and Compressors Staging .

The process of refrigeration relies on a large fan capability to remove heat from a fluid by evaporating water sprayed on a heat exchanger . The system measures the outside temperature condition to control the load on the condenser and compressors, this results into a more efficient overall refrigeration system .

CHEMICAL USE REDUCTIONChemicals do play a critical role in the safety of our finished product . They are also a significant cost to our business and some may have a negative impact on the environment .

We must get the balance right and as such Parmalat Australia is working closely with our suppliers to rationalise the number and usage of all our chemicals .

WATER CONSUMPTION AND WASTE WATER TREATMENTThe dairy industry consumes large quantities of water to process dairy products safely . Parmalat Australia understands that water is a precious resource that requires constant management . Our manufacturing sites track and report on water consumed per kg of finished product . Water intensity in Parmalat Australia in 2014 was 1 .80 L/L (down 1 .6% from 2013) .

Manufacturing sites reduced fresh water use by 23,000 cubic meters through implementation of water efficiency projects . One of the most significant projects was implementation of the ‘dry floors’ mandate across our manufacturing sites during 2014 .

WASTEWATER TREATMENTDisposing of waste water in a responsible manner is important to Parmalat Australia . We recognise that waste water from a dairy processing plant can be detrimental to the environment .

In 2014, Parmalat Australia installed a dissolved air flotation treatment in our Clarence Gardens site . We also have plans for waste water treatment plant upgrades at our Lidcombe and Rowville sites in 2015 .

The manufacturing sites reduced their wastes to sewer by reducing milk losses in tanks, transfer lines and optimising chemical cleaning .

Overall, waste to sewer was reduced by 9 .3% in Chemical Oxygen Demand (COD)1 weight in 2014 compared to 2013 .

1 COD or Chemical Oxygen Demand is the total measurement of all chemicals in the water that can be oxidized . It is a measure of water quality .

ENERGY EFFICIENCY PROJECTS

Annual natural gas savings: 1900 GJ Reduction of carbon emissions : 98 tonnes of CO2

Annual Electricity savings: 600,000 kWhReduction of carbon emissions : 522 tonnes of CO2

Lidcombe started water mapping to understand the different point of use through the manufacturing process . Once this understanding was developed they were able to optimise their consumption in particular areas .

Parmalat Australia manufacturing sites water use in 2014

Surface water (174,810 kL)

Ground water (18,300 kL)

Mains Supply (1,445,121 kL)

Recycled (4,554 kL)


Total workforce by region and gender(Parmalat Australia employees)

Salaried employees

Salaried employees (female)

267

Salaried employees (male)

416

Salaried Total 683

Supervised workers

Supervised workers (female)

293

Supervised workers (male)

1,072

Supervised Total 1,365

Employee and workers Total 2,048

Region and gender Total

New South Wales (female) 65

New South Wales (male) 254

New South Wales (total) 319

Northern Territory (female) 5

Northern Territory (male) 47

Northern Territory (total) 52

Queensland (female) 187

Queensland (male) 586

Queensland (total) 773

South Australia (female) 16

South Australia (male) 61

South Australia (total) 77

Victoria (female) 149

Victoria (male) 487

Victoria (total) 636

Western Australia (female) 59

Western Australia (male) 131

Western Australia (total) 190

New Zealand (female) 0

New Zealand (male) 1

New Zealand (total) 1

Total females by region 481

Total males by region 1567

Total workforce 2048

Total workforce by employees and supervised workers, by gender(Parmalat Australia employees)

Permanent

Permanent female 462

Permanent male 1,450

Permanent total 1,912

Temporary

Temporary female 19

Temporary male 117

Temporary total 136

Total employees by employment type and gender(Parmalat Australia employees)

Full time

Full time female 413

Full time male 1,443

Total full time 1,856

Part time

Part time female 49

Part time male 7

Total part time 56

Total employees by employment type and gender (Parmalat Australia employees)

OUR PEOPLEAt Parmalat Australia we truly believe that a sustainable business starts with a balanced scorecard . Not only do we focus on our business results, we equally focus on having the right people, in the right roles, supported by the right culture, in order for the organisation to succeed into the future . We are proud of the diversity of our workforce, embracing a wide spectrum cultures, backgrounds, languages and ages – with all employees enjoying opportunities for personal or professional growth within their roles . Parmalat Australia’s Human Resources policies and practices are based on the fundamental principle of fairness . All our employment, transfer, promotion and training decisions are made on a base of merit . No forced or child labour is or has ever been an acceptable form of employment at Parmalat Australia .

Each manufacturing site is governed by one or more Enterprise Agreements, negotiated in good faith with all eligible parties . These instruments provide competitive benefits and conditions that exceed modern award standards and serve to be a valuable tool for attraction and retention of our team members . Around 61% of our employees were covered by collective bargaining agreements during the reporting period .

Our workforce increased by around 300 during the reporting period due to the acquisition of the Harvey Fresh group in April 2014 . Harvey Fresh has operations in Western Australia and New South Wales .


Breakdown of salaried employees receiving regular performance appraisals, by gender and employee category

One of the pillars of our culture at Parmalat Australia is about fostering constructive behaviours and maintaining a ‘glass half full’ attitude in all situations . We understand that things can’t always be perfect, but it’s how you respond in those situations that makes the difference . Taking a constructive approach to problems allows us to learn, grow and be solution-focused . Strong leadership is necessary for any successful organisation and Parmalat Australia also uses a 360 degree feedback program to grow our leader’s constructive behaviours and self awareness .

ENGAGEMENT MATTERSParmalat Australia strongly believes that engaged employees are key enablers of our Strategic Plan . Not only do we live the concept of employee engagement through our values, we also measure our engagement level annually as a company . We commenced this process in 2010, and since then have grown our total company engagement score from 47% to 63% in 2014 . Listening to feedback and developing targeted action plans across the business areas has provided us with impressive year on year growth . We will continue to focus on incremental improvement as we work towards a “best employer” category .

PEOPLE DEVELOPMENT Parmalat has developed a comprehensive performance management program, Performalat, used globally across the group . This system allows us to evaluate WHAT and HOW we are achieving our goals, and link rewards and incentives to individual outcomes . Performalat also incorporates our values by measuring each employee against the 10 core competencies . This integration provides a common set of behaviours for which all team members can demonstrate in their roles . All salaried employees (683 in 2014) are appraised using Performalat every year, with mid-year reviews so leaders and team members can monitor progress together .

Employee Male Female

All Senior Leadership Group 38 11

Managers and Supervisors 144 52

Employees 234 203

This program uses the tool ‘Life Styles Inventory’, developed by Human Synergystics as the foundation to measure leadership behaviours at an individual and group level .

100%

65%45%

30%

0%

High Performance Aon Hewitt Best Employer RangeDestructive Range

Serious Range

Parmalat 2010 47%

Parmalat 2014 63%

Indifferent Range


In 2014 we launched Women in Parmalat; an initiative chaired by the CEO and driven by a cross functional committee . Parmalat Australia, like many manufacturing companies has a male dominated workforce (37% women) and this percentage reduces significantly through leadership levels of the business . WIP has a vision of empowering the women in Parmalat Australia to reach their maximum potential, encouraging them through leadership, information sharing, education and mentoring . The program aims to create a framework of professional development, career-broadening opportunities, engagement and work-life balance .

Parmalat Australia also supports employees and their families through its parental leave program . Of the 23 employees who went on parental leave during the reporting period, 19 have resumed employment while two have resigned and two remain on leave . All employees using the parental leave program in 2014 were women .

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITYWe value diversity and believe it is essential to business success .

Surrounding ourselves with people from a variety of cultural and social backgrounds gives us access to a greater range of perspectives and ideas . This diversity enables us to:

> Understand our customers better and provide them with superior service

> Innovate faster and stay ahead of our competitors

> Foster a productive and fulfilling workplace .

For decades, Parmalat Australia has successfully developed, implemented and trained all employees in our “Let’s All Be Fair” program . This program is an integration of policies promoting an ethical, safe and fair workplace, free from all forms of discrimination and harassment . Reinforced by our “code of conduct” this program provides the standards of behaviour we hold each other to .

BORDERLINE QUALITY



SAFETY AND HEALTH

Leadership and CultureParmalat Australia has the belief that injuring our employees, visitors and contractors or damaging the environment in the pursuit of manufacturing, selling and distributing our products is not an acceptable option .

We have developed a strong safety culture with a vision of zero injuries and zero environmental harm .

We believe the key to the development of our strong safety culture is great leadership .

Our leaders believe that:

> Our people are our most important asset

> Working safely is a condition of employment

> Safety and environmental performance is a key business objective and each leader has personal safety KPI’s .

PARMALAT AUSTRALIA IN THE COMMUNITY

At Parmalat Australia we aim to engage all employees in our safety journey . We believe safety is a personal responsibility and each employee has an obligation to work safely to protect the safety of ourselves and the safety of others . To assist us with this process we have a regional safety team working with their local sites on national and local SHE initiatives . Every employee of Parmalat Australia is also represented at a local level by safety committees . This includes our national sales team .

Targets and ResultsOver the past 5 years Parmalat Australia has set quite aggressive proactive safety targets for its leaders . As a result our lost time injury frequency rate (LTIFR) and our total recordable injury frequency rate (TRIFR) have decreased significantly . Our LTIFR decreased by 27% in 2014 to 4 .8 and TRIFR decreased by 29% to 14 .6 .

(New South Wales) site and will provide an update on our performance in our future Sustainability Report .

Supporting the communityCorporate Social Responsibility is a critical part of Parmalat Australia’s People and Culture Strategy . We are proud to be official partners for Murdoch Children’s Research Institute, Ronald McDonald House and Saint Vincent de Paul charities . Our employees relish the opportunity to be involved in contributing to the community through activities that benefit these causes .

Lost Time Injury Frequency Rate (LTIFR) and Recordable Injury Frequency Rate (RIFR) are the main industry measures we use to track our safety performance . The LTIFR and RIFR represents the number of lost time injuries and recordable injuries (respectfully) for every one million hours worked over a 12-month period .

The chart below is a breakdown of our injuries during 2014 . 35% of our injuries are the result of sprains and strains and as result we continue to target our safety initiatives and resources to reducing our manual handling risks .

The significant reduction in our overall injury rate has had a direct impact on our financial performance . Although we cannot measure all indirect costs associated with injuries (i .e . moral, motivation and business interruption, etc .), the direct impact on our worker’s compensation premium since 2012 has been a reduction $1 .5 million dollars (40%) .

Injuries by type 2014

15%

35%

37%

6%

5%

2%

Strain sprainSuperficialContusionBurnsForeign BodyOther

70 .0

39 .0

43 .5

35 .0

24 .420 .6

14 .6

63 .056 .0

39 .0

13

2226

109 .5

11 .5 13 .58 .5 6 .5 4 .8

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20160

10

20

30

40

50

60

70

80 RIFR

LTIFR

Safety Results 2014

Working with our neighboursOur manufacturing sites operate in communities across Australia . We aim to maintain a great relationship with our local neighbours . From time to time, our neighbours raise concerns such as odour from our sites . We work with local regulators and our community neighbours to understand and respond to concerns as they arise .

Parmalat Australia did not receive any community complaints about our environmental performance during the reporting period . Since that time, we have been addressing odour concerns at our Lidcombe

ABOUT THIS REPORTThis is Parmalat Australia’s inaugural Sustainability report. It aims to address some of the major challenges faced by the food and beverage industry.


As Australia’s Dairy Industry leader, we recognise that it is important that Parmalat Australia plays a leading role in raising awareness about key sustainability issues . We are part of a changing world where sustainability is central .

The Report provides an overview of Parmalat Australia’s key sustainability actions and performance for the period January to December 2014 . The Report has been prepared ‘In Accordance’ with the Global Reporting Initiative’s (GRI) G4 Guidelines at a Core level . The Report has not been externally assured . We intend to report on an annual basis .

ANY QUESTIONS We appreciate feedback and are happy to answer questions about this Report or our approach to sustainability .

Please contact us as follows: Phone: 1800 676 961 Email: SustainabilityManager@parmalat .com .au Address: 35 Boundary Street South Brisbane, QLD 4101

GLOBAL REPORTING INITIATIVE (GRI) INDEX

Design and Publishing Amazon Design & Print: 1131 Raglan Parade, Warrnambool, Vic 3280 Phone: 03 5562 9199 Email: info@amazononline .com .au www .amazononline .com .au


GENERAL STANDARD DISCLOSURESASPECT GRI REFERENCE REFERENCE

Strategy and Analysis

G4-1 CEO Message 8, 9

Organisational Profile

G4-3, G4-4, G4-5, G4-6, G4-7, G4-8 We are Parmalat Australia 6, 7

G4-9 We are Parmalat Australia 6, 7

Information on Parmalat Australia’s financial and sales performance is not included in this Report . Read about the organisation’s employees and operations in We are Parmalat Australia .

G4-10 Key Sustainability Issues and Opportunities

Our People 22

Workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors, do not perform a substantial portion of Parmalat Australia’s work . Read more in Our People .


Our People 22

G4-12 Sustainability at Parmalat Australia 10, 11

G4-13 CEO Message 8, 9

G4-14 Sustainability at Parmalat Australia 10, 11

Parmalat Australia manages current and emerging sustainability issues through their standard business practices . Sustainability-related risks are incorporated into the enterprise risk management framework .


Food Safety, Ingredients Sourcing, Milk Supply 15, 16

G4-16 Stakeholder Engagement 12, 13

Identified Material Aspects and Boundaries

G4-17 We are Parmalat Australia 6, 7

Information on Parmalat Australia’s financial and sales performance is not included in this Report . Read about the organisation’s employees and operations in We are Parmalat Australia .

G4-18, G4-19 Key Sustainability Issues and Opportunities 14–29

G4-20 Key Sustainability Issues and Opportunities 14–29

Stakeholder Engagement 12, 13

Parmalat Australia’s material aspects are generally material throughout the organisation . Read more in Key Sustainability Issues and Opportunities and Stakeholder Engagement .

G4-21 Key Sustainability Issues and Opportunities 14–29

Stakeholder Engagement 12, 13

Parmalat Australia’s material aspects are relevant to external stakeholders as follows: Food Safety (Consumers, Industry Groups, Regulators), Ingredients Sourcing (Consumers, Suppliers, Industry Associations), Milk Supply (Consumers, Suppliers, Industry Associations), Resources Management (Employees, Suppliers, Industry Groups), People Development (Employees, Local communities), Safety and Health (Employees, Local communities), Parmalat in the Community (Employees, Local communities, Charitable Organisations, Consumers) . Read more in Key Sustainability Issues and Opportunities and Stakeholder Engagement .

G4-22, G4-23 Not applicable .

Stakeholder Engagement

G4-24, G4-25, G4-26, G4-27 Stakeholder Engagement 12, 13

Report Profile

G4-28, G4-29, G4-30, G4-31, G4-32, G4-33

About this Report 30

Governance

G4-34 We are Parmalat Australia

Great Brands, Great People, Great Governance 6, 7

Ethics and Integrity

G4-56 We are Parmalat Australia

Great Brands, Great People, Great Governance 6, 7


SPECIFIC STANDARD DISCLOSURESASPECT GRI REFERENCE REFERENCE

ECONOMIC

Indirect Economic Impacts

G4-DMA, G4-EC8 Key Sustainability Issues and Opportunities

Milk Supply 16

ENVIRONMENTAL

Materials

G4-DMA Key Sustainability Issues and Opportunities

Milk Supply and Resource Management 16, 17, 18, 19, 21

G4-EN2 Key Sustainability Issues and Opportunities

Waste Disposal 19

Partial disclosure . Only recycled HDPE resin data available at the time of reporting . Read more in the Sustainable Packaging section and Parmalat Australia’s National Packaging Covenant Report (weblink) .

Energy

G4-DMA, G4-EN3 Key Sustainability Issues and Opportunities

Waste Disposal 19

Energy efficiency and greenhouse gas emissions .

Water


Waste Disposal 21

Water use and waste water treatment .

Emissions

G4-DMA, G4-EN15, G4-EN16 Key Sustainability Issues and Opportunities

Waste Disposal 19

Energy efficiency and greenhouse gas emissions .

Effluents and Waste


Waste Disposal 19

Supplier Environmental Assessment


Milk Supply 16

Environmental Grievance Mechanisms

G4-DMA, G4-EN34 Stakeholder Engagement 12, 13

Working with our neighbours .

SOCIAL

Labour Practices and Decent Work

Employment

G4-DMA, G4-LA3 Key Sustainability Issues and Opportunities

Our People 27

This is Parmalat Australia’s inaugural Sustainability Report . We aim to report on retention rates (LA3 d and e) in future Reports . Read more about our 2014 performance in Diversity and equal employment opportunity .

Occupational Health and Safety


Safety and Health 28

G4-LA6 Key Sustainability Issues and Opportunities

Safety and Health 28

Partially reporting using Parmalat Australia safety measures . Read more in Safety and Health .

Training and Education


Our People 24

People Development .

Human Rights

Freedom of Assocoation and Collective Bargaining

G4-DMA, G4-HR4 Key Sustainability Issues and Opportunities

Our People 24

Child Labour


Our People 24

Forced or Compulsory Labour


Our People 24

Product Responsibility

Customer Health and Safety

G4-DMA, G4-PR1 Key Sustainability Issues and Opportunities

Food Safety 15

100% of significant product and service categories . Read more: Food Safety .

35 Boundary Street South Brisbane, QLD 4101

p 1800 676 961 e SustainabilityManager@parmalat .com .au

sustainability report 2015 · dairy products – milk, cheese, yoghurt ... consumer the dairy...

Documents