Other forms of energy
Legislation is tightening across all our markets. In the UK for example, the government is introducing power consumption legislation, forcing every organisation that crosses a power-usage threshold to compete with each other in a league table based on energy efficiency. By 2011, organisations commit to purchase allowances in line with their overall power usage. Rewards will be received based on performance in the league table. Some initiatives include:

Green building – Energy-saving technologies are specified for all newly built warehouses at Bidvest Europe. Measures include energy-efficient lighting, voltage optimisation equipment to reduce electricity consumption and photovoltaic systems for battery charging. At Deli XL- Belgium, new software analyses electricity and gas consumption, enabling the business to achieve an electricity saving of 350MwH and a gas saving of 200 MwH. This was also partly achieved through smart batteries and charging systems and dehumidifiers for cold storage.

Warehouse refrigeration – 3663 has implemented ammonia-based refrigeration in its newest sites and none of the major refrigeration systems used at the depots contain CFCs. Seven depots have heat-recovery components to capture the waste heat that is a by-product of the refrigeration system. It is then used to heat the glycol mats that prevent the ground under the floors from freezing.

Electricity from renewable resources – Since July 2008, over 97% of 3663’s electricity consumption has been derived from renewable sources via sustainable suppliers to the national grid. Electricity consumption has reduced by 8% during the year, partly accounted for by depot closures. Nonetheless, the company intends to improve its energy efficiency on an ongoing basis where cost effective.

Packaging
Bidvest Europe is committed to increasing the amount of recyclable packaging across its private-label ranges and providing the accompanying eco-labels to communicate this. However, the ratio of private-label products is far lower in Belgium and the Netherlands, with the result that progress in these markets has been slower than in the UK.

3663 tracks packaging material used in its business and meets its producer obligations under packaging waste regulations. Packaging of own-label products differentiates 3663’s efforts to reduce packing mass. This campaign has resulted in packaging weights that cannot be reduced further without compromising product quality. Outer case packaging weights on UK private labels have now stabilised at 232g per case.

The next area of focus will be to work with the company’s brand partners across all operations to roll out the techniques already proven within Bidvest.

Recycling
Bidvest Europe has effective recycling policies in place across all sites, resulting in a steady increase in the level of recycling of key materials. Various recycling indicators are closely monitored, including the total tonnage of cardboard and plastic recycled compared to the total volume of packaging handled. Many depots now have machines to bale cardboard and plastic pallet wrap. All other waste streams are segregated and where possible recycled, i.e. plastic cups and bottles, aluminium cans, stamps, printer cartridges and paper.

Non-recyclable waste streams are segregated and disposed of in accordance with the appropriate legislation, i.e. hazardous waste regulations, animal by-products regulations etc.

Supplier environmental improvement
Bidvest Europe aims to work with suppliers to continuously improve the environmental performance of the entire supply chain, but individual companies are at different maturity levels. As the programme develops, the provenance of food products can be improved and more accurately described on brand labels, ensuring that our products lead the drive towards responsible environmental stewardship. To take performance levels above legislative requirements, the division aims to measure the percentage of products that come from sustainable sources.

In Deli XL - Netherlands, contracts are being secured with growers that specify best growing practices, the use of organic, rather than chemical fertilisers, water reticulation practices, product handling and packaging, etc. Close cooperation with the Rainforest Alliance has led to the launch of private brand Reuser & Smulders, offering coffee and tea from sustainable sources. An alliance has also been formed with a Norwegian salmon-farming operation that presents a sustainable and environmentally responsible alternative to traditional fishing and farming practices.

In the UK, 3663 works with own brand/label suppliers to provide support and guidance to help them improve their environmental performance and the ultimate environmental value of the company’s own brand/label products.

The supplier environmental performance improvement scheme (SEPI), introduced in 2005, supports 3663’s own brand/label suppliers in their efforts to achieve ISO 14001 or EMAS environmental standards. This year we have 22 suppliers registered with SEPI. This is a reduction from last year solely due to suppliers being de-listed from providing own-brand products.

Ethical trading policies at Deli XL- Belgium, Deli XL - Netherlands and 3663 require suppliers to apply the principles of ethical trading and the UN Global compact.

People – labour practices and decent work
Following retrenchments in the prior year, employee numbers have levelled off.

Bidvest Europe companies attract and retain talented and motivated employees who share the company’s values. These values have been tested during the economic downturn, especially at 3663, where more than 500 staff lost their jobs in the prior year. Key people measures such as employee absence and employee turnover reflect the sensitivity with which retrenchments were managed and are consistent with a positive spirit in pursuit of the division’s long-term success.

Bidvest Europe continues to focus on developing and training employees. Although training spend per employee decreased, the number of training hours per employee increased significantly through more efficient use of the training spend.

Employee engagement
Bidvest Europe is active in its engagement with employees. Each company has its own structure for consultation and methods of surveying staff satisfaction. A national consultation forum is held annually by 3663, utilising voluntary ‘communication champions’ to gather questions and issues from the business for engagement with the board through discussion during break-away sessions. In addition, listening groups generate qualitative feedback and explore issues in depth. In June 2010 a listening group gained important feedback from the communications champions to help shape the company’s vision, mission and values.

In the UK, 84% of all staff voluntarily and anonymously completed the satisfaction survey, providing feedback on key aspects of work-life within 3663. Aspects surveyed include (from least to highest score): recognition, personal development, leadership, team-working, the work environment, communication, customer focus and sustainability. Results are communicated throughout the organisation and insights translated into key action plans at all levels, with accountability at senior-management level.

An external survey, run by ‘Best Companies’ in conjunction with ‘The Sunday Times’ recognised 3663 for employee engagement, employees giving back to society, the company’s protection of the environment, and how well employees feel they are treated, including how their pay and benefits compare to similar organisations. 3663 is researching employee benefits which could further support the company’s sustainability agenda.

All Bidvest Europe operations increase awareness around sustainable business practices.

Deli XL Belgium started an employee engagement and communication plan called the CAP programme that encourages employees to share their views on a variety of sustainability issues. Through this engagement, a review of printed reports was undertaken, resulting in more efficient document use and paper savings. The contract to supply ink cartridges for printed reports has been renegotiated to be more environmentally friendly.

Deli XL Netherlands in the past year introduced several new initiatives as part of their national internal branding program. This programme focuses on achieving its reputation as ‘First for Foodservice’ by implementing five core values. A significant new project is the health project initiated by Human Resources, to decrease non-attendance at work. 425 Employees participated in a free health check and all employees are offered discounts on sports activities. Furthermore Deli XL Netherlands introduced an ambassador project to further implement its corporate sustainability programme. Employees from different sites meet regularly to discuss new centrally managed initiatives and to develop local action plan. The results of these initiatives are already paying off: loyalty is increasing and 81,8% of Deli XL employees completed the annual satisfaction survey. Deli XL takes a top 50-position in the Dutch market with a score of 7,3 on general satisfaction.

A network of over 65 sustainability coordinators helps 3663 employees drive sustainability and environmental initiatives at all locations. Under the guidance of the Environmental Services Department, the coordinators communicate sustainability issues, participate in environmental audits at company sites and collate employee ideas for further improvements in areas such as waste recycling and energy efficiency. Regional workshops are held to further develop the environmental management system and provide training on legislation updates. A sustainability conference is held every year to highlight the significant achievements made within the business and reward and recognise best practice.

Performance, policies and benefits
Particular focus is devoted to working practice and policies that ensure work environments are healthy and safe and that employees experience fair pay and benefits. Sustainability aspects include, where appropriate, flexible working, such as home-based or part-time working, to minimise employee travel time and mileage.

Bidvest Europe continuously monitors safety management. In the UK, 3663 is pioneering the adoption of an externally accredited occupational health and safety management system, BS OHSAS 18001, to reduce the company’s exposure to health and safety risks.

3663 employees are provided with opportunities for development and informal and formal recognition and go through annual appraisals. Employee benefits include: pension scheme,childcare vouchers, health care and discounts for health and family-oriented activities.

Continuous improvement is embedded into the culture of Bidvest Europe. The First for Service programme uses the European quality management excellence model to drive improvement in business performance at every level.