2014 Annual Report52

SOCIAL AND ENVIRONMENTAL INFORMATION

ENVIRONMENTAL REPORT GENERAL POLICY AND ISSUES Groupe Bongrain is a responsible industrial company attached to minimizing its footprint on the environment from procurement of raw materials to delivery of finished prod- ucts. All subsidiaries are bound by the same environmental undertakings.

Its approach begins with the establishment of long-term rela- tionships with milk producers and the application of a proto- col detailing best livestock husbandry practices, promoting reasoned farming practices designed to reduce farms carbon footprints and other environmental impacts, and improving the efficiency of milk collection.

As a manufacturer, the Group is committed to controlling the impact of the whole of its business on the environment. The main issues center on reducing water, energy and packaging consumption and making optimal use of raw materials, as well as on monitoring and controlling discharges to the air and wastewater.

Standardization of processes and operating methods, general- ization of the most efficient equipment and the identification and dissemination of best practices all help reduce consump- tion, emissions and waste.

A system for assessing safety and regulatory compliance at production sites helps operational units implement appropri- ate prevention and protection policies. The approach involves the use of ratings reflecting the levels of risk which in particular condition the calculation of the Group s insurance premiums. Since the institution of this system, the frequency of accidents in the Group has been significantly reduced, thereby improv- ing our insurance terms and the applicable deductibles.

The Group has recognized no provisions and provided no guarantees in respect of environmental risks.

ENVIRONMENTAL MANAGEMENT

Organization A manager is responsible for the operational deployment of environmental protection measures at every subsidiary. At subsidiaries with several production sites, the manager is generally in charge of Hygiene, Quality, Safety and the Envi- ronment (HQSE).

At head office, the Group s industrial department supports subsidiaries in the operational implementation of environmen- tal protection measures, supervises their improvement plans, promotes sharing of best practices and monitors changes in their environmental indicators.

Bongrain SA is committed to a policy of excellence and continuing progress, taking into account the point of view of all interested parties: staff, consumers, producers, sharehold- ers, customers, partners and civic society, and to respecting the environment. Its strategy is consistent with sustainable development defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs (the Brundtland report).

Since 2003, those commitments have been confirmed by Bongrain s adherence to the UN s Global Compact and there- fore to its ten fundamental principles in the areas of human rights, labor, the environment and anti-corruption.

In order to ensure the deployment of its policy and monitor the associated results, the Group makes use of a system of report- ing shared by all its subsidiaries. Structured environmental and social reporting is thus ensured via a dedicated tool. An annu- al questionnaire is addressed to all subsidiaries worldwide as a means of collecting and consolidating information for analysis and commentary.

Since 2002, the process of consolidation of the information gathered has been subject to verification by the Group s stat- utory auditors, thereby ensuring independent review of the data.

In 2014, all our environmental and social indicators have also been reviewed by one of our statutory auditors designated an independent third party body as defined by France s Grenelle 2 environmental law (decree n° 2012-557).

The scope of our environmental and social reporting has evolved between 2013 and 2014 as a result of:

The divestment of CF&R; The full consolidation of Delaco, Fromagerie Berthaut, From- ageries Lescure, Fromageries St Saviol and Sodilac.

Each indicator reported is subject to mention of the applica- ble consolidation scope. The changes compared to 2013 have been calculated on a like-for-like basis, i.e. reflecting the data for those subsidiaries which were present in both years.