PHW Group 2019 Sustainability Report

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PHW Group 2019 Sustainability Report
PHW Group 2019   Sustainability Report

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                              COM
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Targets

PHW’s major targets for sustaina-
bility commitment in 2020

                         Animal welfare
                         By the end of 2020, 90 per cent of German poultry production
                         will comply with various animal welfare concepts.

                         Alternative proteins
                         Expansion and intensification in production and utilisation
                         of alternative protein sources.

                         Climate neutrality
                         Continual participation in the initiative ‘ZNU goes Zero’.
                         From 2020 onwards, the PHW Group will produce on a 100 per
                         cent climate-neutral basis at its ZNU-certified production sites.

4.
                         Raw materials and animal feed
                         Exclusive use of sustainably grown soybean meal and
                         no use of mineral phosphorus in at least 50 per cent
                         of animal feed production by 2025.

                         Packaging
                         Further reduction of plastic packaging and
                         optimisation of its recyclability, at the same
                         time considering absolute product safety.

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PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Interview

Recognising
chances and taking
the initiative
How will the diversity of foods on the
                                                           Peter Wesjohann, Chairman PHW Group.
market develop and how is the PHW
Group planning to act in response to
the changes?
Peter Wesjohann: Meat consumption will             What sustainability targets are your
change in the coming years. Plant-based            company currently striving to achieve?
alternatives will take over an integral            Peter Wesjohann: In our commitment
presence on the market in the future. In           to sustainability, the current orientation
my opinion, the consumption of meat will           is focused on climate-neutral efficiency
continue to play a major role. As in other         of our WIESENHOF production sites.
product formats, a range of products will          We want to reduce the amount of CO2
doubtless exist alongside one another.             emissions in all areas of our business to a
Our target is to strengthen and confirm            minimum, in order to (where economically
our profile as supplier of high-quality pro-       and physically possible), produce on a
tein products and concurrently develop             climate-neutral basis. At the same time,

                                                                                          4.
new business fields accordingly. We want           we have also set ourselves a target for
to forge ahead with expansion of our               our core business that 90 per cent of
core business not only through further             German production should stem from
development of our conventional produc-            operations complying with our animal
tion but also through intensification of           welfare concepts by the end of 2020.
our animal welfare concept and simulta-            With the founding of Green Meadows an
neous development in the project area of           important milestone has been reached
alternative protein source fabrication. We         and consequently our alternative protein
don’t see the plant-based food industry            sector business segment has been rein-
growth as a threat to our existing core            forced, enabling us to continue striving
business but rather as an opportunity for          towards our ultimate goal.
the future.

                                                                                                  3
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Stakeholder survey

A total of 81 per cent of the stake-
holders view PHW/WIESENHOF
as a company with a strong com-
mitment to a sustainable concept
The PHW Group is constantly in close               Similarly positive is the assessment
dialogue with diverse internal and external        regarding the credibility of the company.
stakeholder groups. In order to get a              Respondents state that efforts to address
comprehensive impression of the actual             sustainability issues are reflected in
perception in relation to the group’s              consumer products of the PHW Group. In
sus-tainability aspects, the PHW Group             all, 80 per cent rate the company’s way
initiated and carried out a structured,            of communication and dialogue orienta-
all-embracing stakeholder survey. The sur-         tion positively. In answer to the question
vey took place in September and October            of whether PHW/WIESENHOF fulfils the
2019, implemented by fjol GmbH (business           participants’ expectations with regard to a
consulting for sustainability). Suppliers,         well-managed stakeholder group dialogue
farmers, NGOs, trading partners, regional          29 of the interviewed, among them NGOs,

4.
stakeholders, cooperation partners in              suppliers and customers, answered with
sport as well as work council represen-            a definite ‘yes’. The survey also brought
tatives and trainees were interviewed in           to light that the partners asked find the
writing. The participants comprised of 17          improvements in animal welfare standards
external and 19 internal stakeholders.             as the most important factor for them. The
                                                   potential for action in respect of reduction
Summary of the results                             in pack-aging and reduction of greenhouse
A total of 81 per cent of the interviewed          gas emission levels was also relevant to
partners view PHW/WIESENHOF as a                   the participating partners. All in all, our
company with a clear commitment to a               aims and targets match the needs and
sustainable concept in all business areas.         requirements of the interviewed parties.

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PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Animal welfare

Continual improvement
in animal welfare
In 2018 approximately 3.75 million             set in 2017 by 2020”, stated Dr Michael
slaughtered poultry per week originated        Südbeck, head of Quality Management.
from multiple animal welfare programme.        “Completely avoiding the use of antibiot-
By the end of 2019 the percentage genera-      ics is not realistically possible. When an
ted in German production sites increased       animal becomes ill, it sometimes needs,
to 80 per cent. The next step planned is a     according to veterinary assessment, an

                                                                                       4.
further increase to 90 per cent of German      antibiotic treatment. It is important how-
production by the end of 2020.                 ever, to reduce the amount of antibiotics
                                               used, wherever possible, to a minimum.
The use of antibiotics should be               We know today that many factors influ-
reduced to a minimum                           ence the health of animals. Our target
In 2017 the PHW Group set itself a sus-        is to implement a variety of aspects to
tainability target: to increase the number     improve animal health even further. We
of farming partners using no antibiotics       will continue to strive towards avoiding
to 70 per cent by 2020. “We were able          and removing antibiotics wherever pos-
to improve the state of animal health in       sible through our animal welfare concept
the last three years to such an extent that    in farming-partner rearing programmes.”
we are confident to achieve our target

                                                                                             5
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Breeding and rearing concept

Alternative rearing methods

Criteria            Conventional                  Initiative Tierwohl           Donautal
                    WIESENHOF rearing             (animal welfare               Premium
                                                  initiative)                   Poultry

Stocking density:   35 kg/m2 up to a weight       35 kg/m2 for all weight       Up to a max. 30 kg/m2
                    of 1,600g, thereafter         classes                       plus 10% when higher
                    39 kg/m2                                                    sitting level (perches) are
                                                                                available

Breed:              Ross or Cobb                  Ross or Cobb                  Ross or Cobb

Rearing period:     Approx. 30-40 days            Approx. 30-40 days            32-40 days
Type of rearing:    At least 3% of the floor      At least 3% of the floor      Winter garden or
                    space has daylight, mini-     space has daylight, mini-     free-range scratching area
                    mum 20 lux (new buildings     mum 20 lux (new buildings
                    as from October 2009),        as from October 2009),
                    regulated day-night cycle     regulated day-night cycle

4.
Feed:               Non-GMO soy*                  Non-GMO soy*                  Non-GMO soy

Equipment           Straw, hay or other           Picking objects, straw, hay   Straw bales, picking
layout:             bedding materials             or other bedding materials    objects, perches, cereal
                                                                                picking litter

* With this rearing method non-GMO soy is not stipulated.
  However, the PHW Group voluntarily insist on non-GMO soy
  and does more for animal welfare than legally stipulated.

                                   The British animal protection
                                     organisation Compassion
                                      in World Farming (CIWF)
                                    awarded WIESENHOF for
                                   their Private Farm Poultry
                                    Program with the ‘Good
                                            Chicken Award’.

6
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Breeding and rearing concept

WIESENHOF Private               Kip van Morgen 2020+         Beter Leven 1 Stern
Farm (German Animal
Welfare Federation
1-Star)
Closed barn with winter         38 kg/m2                     25 kg/m2
garden: 17 birds/m2, max.
29 kg/m2; without additional
winter garden:
15 birds/m2 = 25 kg/m2
Slow growing, approved          Slow growing, approved by    Slow growing, approved by
by German Animal Welfare        Dutch animal protection      Dutch animal protection
Federation, and recording       authority, ‘De Dierenbe-     authority, ‘De Dierenbe-
of key indicators for regular   scherming’                   scherming’
assessment
Approx. 42 days                 Approx. 42 days              At least 56 days
Winter garden or similar        At least 3% of the floor     At least 20% winter garden
free-range area                 space is natural daylight,
                                minimum 20 lux, regulated
                                day-night cycle

                                                                                              4.
Non-GMO soy                     100% RTRS soy                70% cereal content/non-
                                                             GMO soy*
Straw bales, picking            Straw bales, picking         Straw bales and grain in
objects, perches, cereal        objects, perches, cereal     litter for picking
picking litter                  picking litter

                                                                                                    7
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Alternative protein sources

PHW successfully positions
itself as supplier of high-quality
protein products
The PHW Group’s strategic approach in               When one hears the name WIESENHOF
the business area for the development of            in Germany, one associates the name
alternative protein sources is based on a           first of all with intensive animal produc-
four-pillar model as follows:                       tion and not with plants or vegetables.
                                                    How does that match the modern con-
1 = Own vegan product line                          cept of young, innovative start-ups in the
                                                    food tech scene who want to improve
2 = Distribution partnerships                       the world with vegan products?
                                                    Marcus Keitzer: Very well. In the conver-
3 = Strategic investments                           sations I have had with relevant partners I
                                                    haven’t experienced this ideological discus-
4 = Green Meadows                                   sion. Of course they want to know what
                                                    we do and they don’t accept and approve
                                                    everything, but there is no black-and-white

4.
                                                    thinking in this area.

                                                    The food tech start-ups stand out with
                                                    convincing innovation, frankness and a
                                                    lot of money. Which values do you bring
                                                    to the partnership?
                                                    Marcus Keitzer: We bring what new
                                                    businesses don’t have: a decade of experi-
                                                    ence in production, logistics and distribu-
Marcus Keitzer, Board for Alternative               tion as well as a deep understanding of the
Protein Sources, PHW Group.                         European and German markets coupled with
                                                    assured and proven quality management.

8
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Green Meadows

PHW and The LIVEKINDLY
Company found a joint venture –
Green Meadows
The objective is to produce sustainable       As an integral component of this strategy,
plant-based food in outstanding quality       The LIVEKINDLY Company and the PHW
available for the mass market, at the same    Group have founded a joint venture, named
time taking into consideration the limited    Green Meadows: this new company is to
global resources and diverse climate          become the production, marketing and
challenges.                                   distribution sector of The LIVEKINDLY
                                              Company on the entire European market.
‘The LIVEKINDLY Company’ (prev. Foods
United Inc.) was founded in 2019 with         “To be successful, the excellent expertise
this philosophy in mind. The main share       of The LIVEKINDLY Company, choosing
holder of The LIVEKINDLY Company is the       the most innovative international start-
Swiss-based Blue Horizon Corporation AG.      ups, is linked with the assured quality
The worldwide operating fund is known to      and distribution network of the mother
investors in many established companies       company of Green Meadows, the PHW

                                                                                     4.
who specialise in plant-based food produc-    Group. We will provide our proven produc-
tion investments. The LIVEKINDLY Company      tion, marketing and distribution expertise
will expand quickly in the future to become   in this partnership with The LIVEKINDLY
the global platform for modern, attractive,   Company for the European market. There-
plant-based food, and on their way to         fore we are able to connect the needs and
reaching this goal, will invest in many       requirements of retail, trade and consu-
companies which implement the complete        mers with future innovative possibilities”,
value adding chain for the production of      explains Marcus Keitzer, Board Member
plant-based food within their range – from    for Alternative Protein Sources, PHW
the first stage including raw material pro-   Group, director of Green Meadows
curement through to the production process    GmbH and member of the Board of
and ultimate marketing and distribution.      The LIVEKINDLY Company.

                                                                                           9
PHW Group 2019 Sustainability Report
PHW Group 2019 Compact Sustainability Report | Climate neutrality

ZNU-certified production sites
produce on a climate-neutral
basis as of 2020
As of 1st January 2020, all WIESENHOF               more than 70 of their corporate business
production sites for chicken, turkey and            partners. The six WIESENHOF production
sausage production are producing on a               facilities proudly comply with the high
100 per cent completely climate-neutral             standards required already. In order to
basis. The six sites have been successively         achieve the compensation target for the
certified according to the ZNU Standard             approximate 80,000 tonnes of CO2 pro-
‘Driving Sustainable Change’ since 2013             duced on-site annually, calculated using
and participate furthermore as part of the          the Greenhouse Gas Protocol (GHG Pro-
‘ZNU goes Zero’ initiative which is based in        tocol), WIESENHOF supports two projects
the Center for Sustainable Leadership at            with ClimatePartner, one of the leading
the faculty of Management and Economics             providers of climate protection solutions.
at Witten/Herdecke University (ZNU).
Within the framework of their voluntary,            One the one hand we are involved in a
climate protection initiative, ZNU has set          regional reforestation programme of a

4.
a target, that by 2022, they will be able           forest holding in the town of Ahlhorn,
to work on a climate-neutral basis with             Lower Saxony. Within the scope of this
                                                    project, one tree is to be planted for each
                                                    of the 7,000 PHW employees. On the other
                                                    hand, the Lower Saxony family-owned
                                                    business is involved on international level
                                                    in another forest protection project in
                                                    Peru, certified according to VCS Standard
                                                    and CCBS Gold level.

                                           The PHW Group activities in climate protection projects
                                           can be reviewed using the individual ID number 14020-
                                          1912-1001: www.climatepartner.com.

10
PHW Group 2019 Compact Sustainability Report | Packaging

Food safety is the top criteria
What can you do as a food producer            high standard. We are searching intensely
to reduce further the amount plastic          for alternatives that allow a reduction
used?                                         in the amount of material used and that
Doris Wesjohann: Any cutbacks in              are at the same time recyclable. The
packaging are not allowed to influence        cost-effectiveness and ecological aspect
the high quality of product safety that we    has to be taken into consideration; the
have achieved. Top quality coupled with       solution must also be affordable for the
a 100 per cent food safety is the crucial     end consumer.
benchmark of our packaging in the area
of quality management. In our opinion we
have two possibilities that we can actively
tackle: firstly we want to reduce the
amount of material used and secondly we
must strictly examine the recyclability of
the new material in question.

What challenges do you see in the area
packaging for the PHW Group?

                                                                                      4.
Doris Wesjohann: The recyclability of
new materials is a key issue for us. Unfor-
tunately, many recyclable materials come
                                              Doris Wesjohann, Member of the PHW-Board, is
with an increased raw material input. That    also responsible for the strategic purchasing.
means that even when we manage to find
a product that is good to recycle; it could
mean that a larger amount of the new
material has to be used to achieve the
same grade of quality required to ensure
that food safety is maintained to our usual

                                                                                           11
PHW Group 2019 Compact Sustainability Report | Logistics

Sustainable action in the
logistics: reducing fuel consump-
tion on a long-term basis
In order to reduce the amount of fuel in            A further improvement to reduce fuel
the logistic sectors, the PHW Group has             consumption is the implementation of
made adjustments in several directions.             new, fuel-saving compressors. Whilst the
In July 2017, the subsidiary MEGA Logistik          previous compressors used 10 litres of
& Service introduced a premium for                  diesel per hour, the new compressors use
economical driving and fuel consumption             only 9.2 litres of diesel per hour. Further-
reduction with very satisfying results:             more, the PHW Group has set a new gen-
“After two years in practice, we have               eration of trucks as a priority. The new fleet
determined that our drivers drive rather            is equipped with a MirrorCam instead of
economically”, explains Adrian Heuer,               external mirrors. This new technology in-
Manager MEGA Logistik and Service.                  fluences not only the driving safety; it also
                                                    reduces the fuel consumption. In addition,
                                                    more and more of the PHW trucks are
                                                    fitted with a Tom-Tom navigation system,

4.
                                                    which helps drivers to plan an optimal
                                                    route. This system has been tailor-made
                                                    for use in heavy goods vehicles and as-
                                                    sists promptly with real-time information
                                                    in case of traffic jams or road problems.

Eight PHW trucks have already been
fitted with the new MirrorCam. Entire
fleet will be successively equipped with
this system in the near future.

12
PHW Group 2019 Compact Sustainability Report | Raw materials and feed

      Protein generated from insects
      instead of soy meal
For many years the PHW Group has been           Enterra produces and markets feed ad-
seeking alternative protein sources for the     ditives produced from the black soldier
production of poultry feed.                     fly larvae, a useful type of insect that is
                                                found in tropical and moderate climate
“With the investment in the Canadian            regions. The larvae lives on vegetable and
company Enterra Feed Corporation we             plant waste products and turns them into
have taken a decisive step forward. We          valuable, useful protein, fat and energy.
are involved in various research projects       The dried larvae can be turned into a
concerned with the introduction of feed         powder form which may then be used as a
with high protein content. It is an advan-      suitable component in feed production.
tage for us to be involved in this new de-
velopment and I am pleased to have found

                                                                                        4.
the right strategic partner with Enterra.
In the future, our target is to find a com-
plete solution in the form of an alternative                 • Brazilian soy meal used by the
to the use of soy meal in poultry feed.                      WIESENHOF farming partners fulfils
We see the insect protein developed by                     the ProTerra Sustainability Standard.
Enterra as a suitable alternative”, explains
MEGA Manager Ralf Kenkel. A major ob-                    • PHW chicken feed is currently
stacle is the missing final EU approval for             produced using 60 per cent of raw pro-
insect protein as a food substitute in feed            tein in mixed feed generated through
for pigs and poultry.                                 domestic protein sources.

                                                                                             13
PHW Group 2019 Compact Sustainability Report | Young staff with new talent

Come and join our team
To remain present on the extremely                  been initiated to make the job more at-
competitive job market, the PHW-Group               tractive with the motto ‘Mischen possible’
created a new ‘Come and join our team’              (mischen=mixing). To catch the attention
with a clear aim of attracting talented             of younger, potential trainees, modern
junior members of staff.                            advertising and media platforms such as
                                                    YouTube, Facebook and Instagram have
A special project was launched to attract           been effectively employed.
trainees interested in becoming heavy
goods vehicle drivers with the motto                In addition, the PHW Group is not only
‘Drive that big thing’ successfully sup-            regularly present at job and training fairs
ported by GEPRO, BSG and MEGA Logistik              – they also presented the first WIESEN-
& Service. For the apprenticeship as a              HOF Training and Career Event in Vechta
process technologist in the mills and grain         in 2019, for example.
processing areas a new campaign has

4.
                                                           In 2019, 20 job starters successfully
                                                          completed their trainee period.

PHW offers approximately 20 different training
professions and three dual courses.

14
PHW Group 2019 Compact Sustainability Report | Social responsibility

Our food of tomorrow
The charitable organisation the Heinz              Support from the Landfrauen rural
Lohmann Stiftung (charity), which belongs          women’s association
to the PHW Group, promotes scientific              Nutritional education within local schools is
research into tomorrow’s nutrition and             a major issue involving the Heinz Lohmann
the development of our eating habits. The          Stiftung to a great extent. Since 2012, the
actual research project deals with the             charity has financially supported a variety
complicated issue of future eating habits          of projects and workshops in coordination
and is carried out and organised under the         with the support work of the Landfrauen
supervision of Dr Christine Brombach from          association in the Hannover region – espe-
the Zurich University of Applied Sciences.         cially in the project regarding cooking with
In 2018, the Volker Pudel prize was pres-          children. Most recently, in autumn 2019,
ented, for the fourth time, to Uwe Neu-            a donation of e 5,000 was handed over
mann, Chairman of the Osnabrück-based              to continue supporting the existence of
association CookUOS e.V. The purpose               this worthy project and help it plan further
of the CookUOS e.V. is the innovative              workshops. The overall amount of dona-
promotion and support of scientific com-           tions sponsored by the Heinz Lohmann
munication and forwarding of nutritional           Stiftung for this particular project has
studies in coordination with consumption           now reached over e 20,000, a worthwhile

                                                                                              4.
habits that support the necessity of               investment in the future.
sustainable solutions for everyone.

The award was presented for the innova-
tive concept created by CookUOS e.V. for
the scientifically researched publication
from Uwe Neumann, dealing with future-
oriented problems and solutions in the
general food chain.

                  The presentation of the fourth Volker Pudel prize took place within an event around
         the theme of nutritional education at the regional garden show in in Bad Iburg, Lower Saxony.
                                    Uwe Neuman, Chairman of CookUOS e.V. was an honoured guest.

                                                                                                   15
PHW Group

LOHMANN & Co.
AKTIENGESELLSCHAFT
Paul-Wesjohann-Straße 45
49429 Visbek
Germany
Phone: +49 (0)4445 8910
Fax: +49 (0)4445 891 250
Email: nachhaltigkeit@phw-gruppe.de

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