Ethical Sourcing Statement Greggs is a much loved and trusted consumer Brand and we seek to retain that status by demonstrating that we are a responsible company and strive to ‘do the right thing’ when it comes to Ethical Sourcing. What does Ethical Sourcing mean to Greggs? At its heart, it’s about making sure our purchasing decisions are made as sustainably, ethically and responsibly as possible within our commercial framework. It’s about ensuring that our supply needs are produced and delivered in a way that avoids abuse or exploitation of workers, animals and the environment. This means we consider the wider implications of our business decisions when making sourcing choices. We acknowledge that we are not large enough as a business to drive significant change on our own in the UK and worldwide supplier base. We always seek, however to continuously drive improvements and we positively support the actions of others through the adoption of industry accepted standards. We have a commitment to our customers, people and shareholders to maintain our reputation for great value products. Inevitably there will be occasions where commercial considerations will conflict with ethical sourcing concerns – we recognise this and will seek to achieve a balanced outcome in our decision making. However, the area on which we will never compromise is the use of quality ingredients - our customers can have confidence that our food contains high quality ingredients that have been sourced and produced in line with good practice. What We Do We seek to source all our requirements (food, ingredients and other consumables) in a ‘responsible’ way, and in line with our Values. We have focused our commitment to sourcing on 7 key areas: Quality; Animal Welfare; Sourcing & Sustainability; Environment; People; Relationships With Suppliers; Ethics. Quality In line with our vision ‘to be a winning brand in the food-on-the-go market’, we are passionate about providing great tasting bakery food and we only source quality ingredients for our products. What’s In Our Food? All the products we make ourselves are: o o o o o Free from artificial colours Free from artificial flavours Free from added trans fats Free from hydrogenated fats Free from genetically modified ingredients How Do We Monitor Our Suppliers? All our suppliers1 are risk assessed on a regular basis, covering both technical and commercial risks, while our suppliers are risk assessed on a bi-annual basis. We carry out regular audits to ensure the standard/quality of products and manufacturing processes are at an acceptable level. All Category 1 supplier factories are BRC accredited or accredited to a Greggs recognised equivalent standard. Animal Welfare We require our suppliers to properly rear, care for and handle animals, complying with accepted animal husbandry practices and current EU and source country legislation. We will not compromise this stance for commercial gain. We endeavour to ensure our sourcing is consistent with this Greggs Ethical Sourcing Statement, and we are committed to continuously review our stance and move forward on welfare issues in line with our customers’ expectations. We have developed a comprehensive Farm Animal Welfare Strategy which details our policies on: Close Confinement and Intensive Farming Avoidance on Growth Promoting Substances Surgical Interventions Pre-Slaughter Stunning Live Transport Genetically Engineered and Cloned Livestock/Poultry Sourcing Our ethos is to support our local communities. This includes sourcing quality food, ingredients, products and other services from local and national companies, tradesman and suppliers. Our preferred choice is to source from local and national suppliers, provided we can guarantee the quality that our customers expect from our products at an affordable price. In some instances the best quality and value raw materials are provided from overseas sources. In these cases we make certain that our ethical sourcing values are strictly maintained to equivalent and often higher than local sourcing options. Sustainability 1 Greggs classifies its suppliers in a 1 to 3 scale defined by a risk assessment process. Category 1 covers ‘high care’ products such as meat, cheese, egg, milk etc. Sustainable Fishing Through our partnership with our tuna supplier, we only source Skipjack tuna and not endangered, at risk species (such as Yellow Fin, Blue Fin or Bigeye) from a designated geographic region. Fishing is not via drift nets or long line methods and we are committed to move to 100% ‘FAD-free’ or ‘Pole and Line’ fishing by 2016. Our prawns are sourced from a designated geographic area and our supplier is Marine Stewardship Council (MSC) certified. Sustainable Palm Oil The past few decades have seen rapid expansion in the production of palm oil. This expansion has put pressure on the environment and on societies where the palm is grown. We have already converted 100% of our boxed palm oil needs to Certified Sustainable Palm Oil (CSPO) and we require all of our suppliers of bakery fats that use palm oil to be members of the Roundtable on Sustainable Palm Oil (RSPO). Over 80% of our total boxed bakery palm oil needs are now from CSPO sources and in line with the rest of the industry we plan to have all of our boxed, bakery Palm Oil provided from sustainable sources by the end of 2014. Environment Society in general, through growing population, climate change issues and unsustainable farming/ fishing practices, is facing potential threats to food security. If we are to continue to offer our customers quality bakery food at great value prices, we need to ensure the sustainability of our business, and this includes considering the environmental impacts of our supply chain. Where we have become aware of environmental concerns connected with ingredients, goods and services from suppliers, our first aim will be to work with the supplier to find a solution to the problem. This is demonstrated by our commitments on Tuna and Palm Oil (see above). Within our Social Responsibility strategy we have a clear commitment to have a 25% reduction in our carbon footprint by 2015. We do operate an Environmental Management system and our intention is have this independently audited and certified to ISO 14001 (2007) in 2015. People We never forget that it is our people who make us a successful company - the pride and pleasure they clearly take in their work is a key point of difference for Greggs. That is why we want all our people to feel individually valued and cared for, and for each person to share in the Company’s success. While not directly under our control, this aim goes beyond our own 20,000 people to include those employed by our supplier partners. While not signatories to the Ethical Trading Initiative (ETI), our plans include the addition of the principles of the ETI base code into our supplier selection and auditing processes. Suppliers are expected to ensure that: Working conditions are safe and hygienic and that safety is effectively managed within their business Employment is freely chosen and no forced or bonded labour is used Labour practices do not involve the harsh or inhumane treatment of employees Exploitative child labour is not used Fair and reasonable wages are paid to employees and working hours are not excessive Their employees’ rights to trade union membership and collective bargaining are respected No discrimination is practised We are able to make a positive difference through our commitment to purchasing Fairtrade products. By sourcing Fairtrade goods, we are able to support marginalised producers in developing countries by guaranteeing a minimum price and a Fairtrade premium. This secure income allows producers to plan for a more sustainable future and also, in turn, to support their local communities through investment in local schools, health care and infrastructure. Currently our Fairtrade products include: Tea Coffee Orange Juice Apple Juice Drinking Chocolate Sugar Sachets Relationships With Suppliers Our suppliers are our partners and without them we could not deliver quality bakery food to our customers. In line with our values of being open and honest, and treating everyone with fairness, consideration and respect, we will: Always value the contribution of our suppliers Never mislead our suppliers to gain commercial advantage Ensure all suppliers are considered equally on their merits Keep to our standard terms and conditions regarding supplier payments Be a signatory to the Prompt Payment Code Consider the potential impact of our actions on our suppliers Keep our suppliers informed of any changes in purchasing decisions to mitigate potential impacts Ethics We have ‘Anti-Bribery & Corruption’ and ‘Business Conduct’ policies in place to ensure our Values are reflected in our purchasing policies and in our dealings with everyone with whom we do business.
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