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Sustainability Charter

Buying into the future

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Intersnack is one of Europe’s leading savoury snack manufacturer, we are owner of many household name brands such as KP, Pom-Bear and Chio as well as a private label supplier to Europe’s biggest supermarkets and brands. Annually, we produce around 500,000 tonnes of snacks including: potato chips, nuts, baked products and specialty snacks.

We are a privately owned company with innovation, entrepreneurship, creativity and teamwork at our core. Our philosophy is based on rapid decision-making, efficient actions and intelligent solutions. This has helped us become one of the leading manufacturers of savoury snacks in Europe, with an annual turnover of €2 billion Euros.

About Intersnack Group

Intersnack Procurement is part of Intersnack Group; responsible for buying ingredients from across the world and ensuring their supply to our factories across Europe.

Intersnack Procurement (ISP) has always been a forward-looking division within a forward-looking company. As a food company we have always understood the importance of valuing where our products come from and how they get to us.

The importance of sustainability for companies has never been clearer or more directly related to wider business value and performance. Increasingly, suppliers, stakeholders and customers want greater transparency and far reaching responses to environmental and social issues. In recent years the focus has widened from company operations to include entire value chains.

Building upon our long held values and recognising how the world is changing, we have developed our Sustainability Strategy to deal with the most important social and environmental issues for our business and its value chain. We have set goals and ambitious tasks for ourselves in order to maintain our market leading position and provide a clear framework for improving our performance into the future.

About Intersnack Procurement

3Peanut sowing with the use of seed drill. Chaco, Bolivia.

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The snacks our consumers love across Europe

With over 20 well-known brands and a large range of private label products, we have an extensive variety of savoury snacks in our product portfolio, ranging from a broad array of potato chips and nuts of any kind, to a large assortment of baked products and unique specialties including any snack you can think of.

Here’s a little taste of our branded products....

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Our Vision

Intersnack Procurement sources products from the environment, primarily based upon agriculture and wild harvesting of plant species. The commodities we buy are transported, often over long distances, processed and packed to make the products our customers love. Like other companies that depend upon raw materials, we face a changing commercial environment as commodity availability, energy costs, regulation and consumer

attitudes evolve. We are committed to understanding and responding to the changes in our environment, with a focus upon people, planet and profit.

We believe that, taken together, these changes and trends indicate a clear need for us to develop a clear, ambitious and robust approach to sustainability.

Buying into the Future emphasises the importance we give to developing enduring and sustainable relationships with suppliers. It focuses upon the sustainability of the products we buy and our work to enhance the quality of life of the people we depend upon within our supply chains. Our vision provides a direction for us to develop our sustainability ambition and continuously improve our performance.

Why sustainability makes business sense for us

Buying into the futureCommitted to sustainable sourcing

Our approach to sustainability

Our focus is upon using our sustainability strategy to deliver effective results. We have therefore identified a number of key themes for our sustainability activities and a series of mechanisms for delivering against these themes and our strategy. These have been developed to reflect and respond to our strategic analysis of sustainability issues and trends, engagement with a range of stakeholders and are also significantly informed by the United Nations Millennium Development Goals (MDGs) and which we hope will also support the forthcoming United Nations Sustainable Development Goals, due to succeed the MDGs in 2015.

As with almost every aspect of sustainability, no issue exists in isolation, therefore the following themes and mechanisms are interdependent and in many cases reinforce each other.

Themes

The following themes highlight areas of focus for our strategy and actions, we have set goals for our work which are detailed within our Buying into the Future Strategy.

ISP recognises that significant product impacts originate in the value chain, outside our direct company operations. We have a twin track approach determined by how well impacts and solutions/mitigation are known and understood.

For products and activities where impacts and solutions are well understood we are engaging

in efforts at key parts of the value chain to gain social and environmental improvements.

For products and activities where the situation is less clear we are gathering information to develop a clearer picture of social and environmental impacts and opportunities.

We recognise that international trade can have both positive and negative effects upon the communities involved, taking place “outside the factory gate” of our suppliers. As a result, we seek to ensure that we understand and minimise the negative impacts and positively strengthen the positive implications of trade for the companies we deal with and the communities they operate in. Therefore we are committed to:

Investment in partnerships with suppliers to increase social quality and community capacity.

Identification and development of new, sustainable and added value products.

Partnership in a range of co-funded projects to develop product production process, and capacity in Africa, Asia and South America.

Discussion with existing and prospective clients for innovative products.

Value chain approach

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Developing Social Quality in Communities

New sustainable products

Sowing peanuts. Chaco, Bolivia.

In-shell cashew nuts. Africa.

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Mechanisms for delivery

These are the main means by which we intend to deliver progress towards our Buying into the Future Vision. In practice some of our product and issue level plans may focus upon more than one of the following mechanisms.

Intersnack Procurement is committed to the use and development of standards where we feel that they signify verifiable best practice in social and environmental performance, deliver value chain benefits and assist customers and consumers in making more sustainable and responsible choices.Our use of standards will differ in application according to sustainability issue and commodity group, due to the relative levels of control, influence and concern we have as a procurement organisation. In detail, we will take the following approach to the use of environmental, social and quality standards:

To use appropriate existing best practice standards where they exist or other standards where they are independently certified and can be legitimately considered to be equivalent.

To lead the development of new standards where suitable standards do not already exist. We plan to do this where Intersnack Procurement has suitable product scale and market/country level leverage and access to key stakeholders to achieve meaningful impacts.

To contribute, as supporters and collaborators, with the development of standards where Intersnack Procurement does not have product or market scale.

Optimisation of shipping and product handling through process and supplier development, with focus upon:

Development and expansion of origin testing.

Development of QA processes to ensure efficiency and quality balance.

Moving to optimal ways of packaging without compromising product quality.

This refers to activities which take place “inside the factory gate” of our suppliers and involves:

Coordination and joint investment with long-term suppliers.

Improving the capacity and efficiency of our suppliers’ operations through the provision of affordable finance and low interest credit facilities (through partnerships with organisations such as Shared Interest) and access to machinery and technical support (through joint projects with Governments and their Development Cooperation Agencies such as GIZ and RVO and NGOs).

Partnership working for standards development and adoption, for example use of ETI (Ethical Trading Initiative www.ethicaltrade.org) base code.

Development of Social Compliance Policy.

Investment in partnerships with suppliers to increase social quality and community capacity.

Standards

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Efficiency

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Supplier Development

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Detaching raw cashew buts. Africa.

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Strategic management principles

Communication & advocacy

Communication

External reporting of our sustainability ambition

and performance is a key aspect of demonstrating

our commitment and progress. We will publish

regular sustainability reports and communicate our

sustainability vision, policies and performance to

suppliers, customers, retailers and NGOs though other

communication routes as appropriate.

Advocacy

We will undertake a number of activities to contribute towards a wider understanding of the need for, and benefits of, more sustainable business practice. We will apply and widen our influence in the sector and value chain through the advancement and diffusion of sustainable practices. Examples of such activity are our membership of the IDH Sustainable Spices Initiative, MVO Netherlands and the African Cashew Alliance.

Data quality

High standards of data quality and integrity are a key aspect of delivering our vision.

In order to achieve such standards, Intersnack Procurement is committed to:

Investment in systems and approaches which allow us to identify and monitor key sustainability performance data.

Using recognised and verifiable approaches to demonstrate the sustainability performance of our products, including product labelling, independent standards (see also below), carbon foot-printing and others as appropriate.

Where appropriate, seeking third party input to provide advice and perspectives both on our approach to sustainability and our progress. This may include business partners, clients, NGOs, stakeholders and other experts.

present a series of specific goals for our activity and a range of specific milestones and activities from 2014 to 2018. We will monitor our progress in undertaking these actions and achieving our goals to demonstrate progress and support the communication of our sustainability ambition and actions.

Structured, systemic management

The delivery of our sustainability vision relies upon a structured, robust and meaningful approach to the management of sustainability within the business.

To do this, we will be developing a structured, systemic approach to sustainability management, by:

Integrating responsibilities for the delivery of sustainability goals within existing staff roles, at all appropriate levels of the business.

Identifying clear metrics and Key Performance Indicators (KPIs) to measure activity and also focus on tangible performance improvements.

Developing reporting structures and processes to measure and demonstrate progress towards the Buying into the Future Vision.

We have developed a number of strategic management principles to support the delivery of our sustainability ambition which have been drawn from a range of international best practice in sustainability management.

Continual improvement

Improving the management of our sustainability activities (processes and approaches) and also our sustainability performance management (improving our impact reduction and positive actions).

Our Buying into the Future Vision, combined with detailed action plans for each of our key commodities

Peanuts field, preparing the soil for sowing. Chaco, Bolivia.

Peanuts field, seeds container. Chaco, Bolivia

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Effective sustainability performance relies upon good corporate governance, therefore the management of sustainability will be integrated with:

Company management structures – from Group Board to Intersnack Procurement’s Board.

The roles and responsibilities of our staff – and be reflected in KPIs and remuneration packages.

All key business processes – sustainability cannot be managed in isolation.

Responsibility for the delivery of Buying into the Future is owned by ISP’s Board and the Buying into the Future Core Committee. Operational management of the strategy is the responsibility of our Sustainability Manager.

The Core Committee is made up of ISP leadership and senior responsible staff members and meets 3 times a year. The Committee has responsibility for assessment and analysis of our progress in delivering the strategy, the integration of new topics as they occur and making changes to the strategy in response to events.

Governance & Ownership

Sustainability in Practice

A massive team effort is needed from business, government and civil society to tackle the challenges of social equity transparency, fair trade, water scarcity and climate change that we all face. Given the great complexity and global nature of these issues, the response must be global, and in order to be effective, it must happen in scale. This is why we engage with different stakeholders to leverage creativity, knowledge and resources and make a positive contribution to society while creating value for the company.

For the last few years, as part of our commitment to Sustainable Sourcing, we have engaged in field projects aimed at improving the livelihood of communities in the South, creating more transparent value chains fair to people and the environment, and supporting local farmers and processors in gaining and maintaining access to the most demanding markets.

We work in inter-functional teams and partner with local and international stakeholders to make sure that the

following sustainability dimensions (at the core of our sustainability vision) are fully taken into consideration all along the value chain, and that product safety and quality meet our standards.

In this respect, our Vendor and Quality Assurance team is fully engaged with our local suppliers with the double objective of developing local knowledge and guarantee compliance to our product and process specifications.

We cannot do this alone

Consideration of new and potential field projects will be the responsibility of an ad-hoc committee with appropriate technical, geographic and subject matter expertise, to be convened as required to discuss opportunities and decide upon Intersnack Procurement’s involvement.

Accountability of different aspects of the Strategy is assigned to named roles/members of ISP staff.

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Government:

NGOs:

Alliances:

We ask our suppliers to be assessed against the ETI base code (Ethical Trading Initiative www.ethicaltrading.org), an internationally recognised code of labour practice.

Drying almonds in the sun. Palestine.

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The intention of our field projects is to play a positive and significant role in building capacity for the sustainable sourcing of nuts and to contribute to the achievement of our strategic goals. Therefore, our approach to field projects reflects our overall strategic approach to sustainability.

This can involve:

Working with partners in stakeholder dialogue to build capacity in the regions in which commodities are grown and to retain more of the value locally through building processing and marketing capacity.

Building the efficiency of our supply chains in terms of traceability, risk minimisation and quality.

Developing the production of rare or wild products.

Testing and developing the application of sustainable standards and labels.

Supporting farmers’ cooperative enterprises to build social capacity and cohesion.

Examples of this approach are the following field projects that we have been implementing with key partners over the last few years.

Intention and approaches

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Shipping a full container load of cashew nuts. Africa.

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Objectives Support cashew farmers and help them improve their annual income providing technical assistance and a competitive, stable market

Create dignified jobs in cashew nut processing

Countries: Ghana, Côte d‘Ivoire, Burkina Faso, Benin, Mozambique, Tanzania

Key leversIncrease efficiency, quantity and quality of primary production and further cashew processing

Improve market linkages along the value chain and promote African cashews

Matching funds / contributors /partnersGIZ (German Agency for Development Cooperation)

Bill and Melinda Gates Foundation

DEG (German Development Cooperation)

Local NGOs

Local business partners

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Cashew processing plant. Africa.

Africa, Cashew

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Objectives

Develop production of native varieties by rescuing the local genetic pool through GAP and RFA certification

Inclusive business: open market possibilities to small and medium farmers through technical assistance and direct engagement

Guarantee fair working conditions to local employees

Support local development by engaging with local communities through tailor made social programs

Support the creation of agricultural services clusters within the framework of local communities empowerment.

Key levers

Technical assistance and capacity building programs

Closely work with local processors to improve manufacturer practices and guarantee workers rights by adopting ETI code

Work with local institutions

Matching funds / contributors /partnersGIZ (German Agency for Development Cooperation)

Local NGOs

Local Processor

Intersnack - lead firm

Bolivia, PeanutBolivia, Amazonian nuts

Objectives

Support rural communities development

Increase income of Amazonian nuts collectors

Support productivity and improve the quality of products.

Key levers

Support collectors in getting organised according to Fair Trade standard

Support collectors to improve their infrastructure

Work in partnership with our local processor

Contributors/Partners

Fair Match Support

Max Havelaar (Fair Trade)

Local Processor

Intersnack-lead firm

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Amazonian nuts, the processing plant at work. Bolivia.

Peanuts field. Chaco, Bolivia.

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Objectives Make the chain transparent while improving local livelihoods and create business opportunities

Natural environment preservation

Supply of good quality walnuts that meet EU Food laws

Countries: Tajikistan, Kyrgyzstan

Key leversSupport farmers to get organised and empowered according to the Fair Trade standard

Closely work with local processors to improve manufacturer practices and guarantee workers right by adopting ETI code

Facilitate links between actors in the chain

Consortium/contributors/partnersFairMatch support

ICCO (Dutch NGO)

Max Havelaar (Fair Trade)

GIZ (German Agency for Development Cooperation)

Local Processors

Intersnack - lead firm

21Selling walnuts at the local market. Kirgizstan.

Central Asia

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Intersnack Procurement B.V.

Havenstraat 62, NL-7005 AG DoetinchemP.O. Box 29, NL-7000 AA DoetinchemTel: +31 (0)314370200

Printed on recycled paper

Sustainable ProcurementDaria ToschiHavenstraat 62, NL-7005 AG DoetinchemP.O. Box 29, NL-7000 AA DoetinchemTel: +31 (0)314370226Email: d.toschi@intersnack-procurement.com

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Building upon the strong foundations

of stable economic growth and pioneering

approaches to sustainable sourcing,

we have developed a clear pathway for our

sustainability activities and a transparent,

accountable approach to the sustainable

management of our business.

Through this charter we want to share

with you our commitment, ambitions

and actions.