Sustainability Report 2017

14 15 4. DEPTH OF THE VALUE CHAIN The company shall disclose the kind of significance that sustainability aspects have for the process of value creation and to what degree its value chain sustainability criteria are monitored. Our product range essentially consists of baked goods that we manufacture in Bocholt and Drossdorf. The necessary ingredients are flour, water, yeast, salt, baking agents, seeds, butter and spices. The value chain begins with the cultivation of the raw materials, with the subsequent further processing of the raw materials, e.g. to make flour. The ingredients are then processed to make baked goods. These are distributed to our trading customers. Finally, the baked goods are consumed by the end customers (utilisation phase). Our own value creation process essentially consists of the production of baked goods through our staff at our two production sites in Germany. The key ecological aspects result from the energy-intensive production process, involving a high use of gas and electricity with the accompanying greenhouse gas emissions. The waste dough and bread produced at the factory are given to third parties who process them further to make animal feed. The food retailers dispose of the unsold baked goods. SUSTAIN ABILITY ASPECTS OUR INGREDIENTS Monitoring production at our own factories in Germany: We are able to directly monitor the social and ecological sustainability criteria in the action fields “Environment” and “Staff” ourselves as we manufacture the products at our own factories with our own staff. The baked goods are produced in accordance with strict environmental and social standards. A small number of temporary staff (about 6 % of the workforce) are employed through staffing firms. We check the staffing firms for compliance with social criteria. Monitoring the supply chain: We work together with a manageable number of German suppliers. Our quality management includes, among other measures, the regular assessment of our suppliers. At the beginning of the business relationship and subsequently at intervals of three years, our suppliers have to fill in a self-disclosure form. All suppliers commit to comply with the BSCI criteria through signing a quality assurance agreement. The most important raw material is flour, which constitutes about 80 % of the materials used in our goods. Through using only German grain mills, whereby most of the flour in turn comes from German grain cultivation, we are able to assess the environmental and social sustainability of this raw material very well. Most of the remaining ingredients, such as butter or spices, come from Germany or EU countries like Holland or Scandinavia. The strict German and European social and environmental standards ensure the highest level of environmental and social sustainability. Only in the case of a small portion of baking ingredients from the global supply chain is it not yet possible for us to check the social and ecological conditions of their cultivation and further processing. Utilisation phase: We look after the well-being of end consumers with delicious baked goods and protect their health by using only the best raw materials and by producing in compliance with strict national and international standards, as well as food regulations. Strategy

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