2014 Annual Report 53

Standards The Group uses the ISO framework in managing its operations at subsidiaries, relying in particular on ISO 22000 and placing the accent on the issues at the heart of its activity i.e. hygiene and food safety of its products. As a means of anchoring the development of control over their environmental impact, Group subsidiaries are equally encour- aged to apply for ISO 14001 certification of their environmen- tal management systems. The Group has also developed internal Guides to Best Practices with regard to various issues with environmental impacts. The following guides have already been deployed at our manufac- turing locations:

Guide to Best Practices for managing raw material yields; Guide to Best Practices for energy management; Guide to Best Practices for damage prevention; Guide to Best Practices for managing cleaning-in-place systems.

The guides are generally accompanied by self-diagnosis ques- tionnaires enabling each entity to measure its progress.

Consumer health and safety The essential part of the Group s production is performed using milk that the Group collects either directly or via asso- ciated cooperatives. Milk traceability is entire and subject to rigorous and systematic control. All suppliers of ingredients are subject to listing procedures including the joint signature of specifications ensuring compliance with all the applicable regulatory requirements.

Intrinsic quality is an integral component of our business culture. The Group devotes very significant resources to achieving excellence over Bongrain s five focuses of quality, namely food safety, health, know-how, consumer satisfaction and product superiority.

The Group believes that its commitment to food safety must be materialized continuously and always aim higher than the applicable regulatory requirements. All its action in this area is strongly supported by Group management and is the corner- stone of the Group s industrial policy.

To that end, on-site audits are regularly performed at all loca- tions alongside systematic product testing prior to release and a specific procedure for approval of new products.

In addition external audits, performed by internationally recognized firms and focused on compliance with ISO 22000, are regularly undertaken at the same locations.

Quality as perceived by consumers is monitored via two tools in particular: a permanent panel of consumers which continu- ously assesses all aspects of our products and sensorial analysis which enables our products to be regularly assessed by trained staff.

This approach enables us to place the accent on improving products relative quality with regard to their competitive environment.

Management of environmental incidents A crisis management system is operational at all the Group s manufacturing, logistical and administrative locations. In the event of any environmental incident or accident, subsidiaries immediately apply the requisite procedures. Regular exercises are performed to check the responsiveness of this organiza- tion and to fine-tune its operation.

Particular attention is paid to damage prevention. Best practices for preventing risks of fire, explosion and natural catastrophes are disseminating with the aim reducing their impacts in the event of occurrence.

This preventive action is complemented by investment in prevention and protection including the provision of sprin- klers and water tanks, the securing of electrical installations, the creation of retention ponds for detergents, the recon- struction of industrial effluent networks, the reinforcement and improvement of water purification stations by means of pre-treatment systems, etc.

Consolidation of environmental information This year s environmental reporting covers 98.6% of the Group s production, including both production, logistics and commercial facilities, given the divestment on December 31, 2014 of an entity representing 1.4% of the total.

Environmental reporting is an integral part of our subsidiaries processes.

Training and information of employees Each year, each Group location makes commitments to limit its consumption of water and energy. In 2014 several locations engaged in environmental protection training and information of employees including: Monitoring of indicators, poster campaigns:

Employee meetings to explain results; Awareness-raising for new employees based on a slide presentation and a quality, health and environmental safety quiz; Training in environmental management, sorting of waste and energy saving; In 2014 one of our major sites initiated an ISO 50001 training program in energy management for its teams of supervisors and managers.

In-house training is used to reinforce awareness-raising. Aimed at all supervisory personnel, it contributes to employees personal and professional development and helps deploy a veritable culture of environmental respect within the Group.

SOCIAL AND ENVIRONMENTAL INFORMATION