Integrated Report VIVESCIA Group | July 2022 - June 2023
EPORT 2022 D R -2 ATE 023 GR ET N I CULTIVATING CONNECTIONS VIVESCIA, its farmers, its partners, its food processing customers, all stakeholders in the plant and grain industries, are working to tackle the challenge of climate change and the agri-food transition.
The VIVESCIA Table All of the Group’s businesses together in the field of our cooperative member Pierre Notairein Saint-Léonard, France: Enzo (farmer), Arnaud (Malteurop), Catherine (Grands Moulins de Paris), Mariane (Délifrance), Ludivine (ARD), Mathilde, Mickaël (VIVESCIA Cooperative), Xavier (VIVESCIA Services), Laura (KALIZEA), Patrick (VIVESCIA Transport), Alban (NEALIA).
We are a cooperative Group made up of interdependent entities that operate along the entire grain value chain… brings together our financial results with THIS FIRST INTEGRATED REPORT the environmental, social and societal aspects of our activity. It highlights the connections that define who we are, that drive us, and which guide our new sustainable development policy, LINK, which was launched nearly two years ago. LINK runs through the Group’s strategy and transformation plans. The commitments it features are progressively being integrated into our business model. This consolidated report is an illustration of that. In this report, we want to talk about our capacity and our desire to bring together our stakeholders – the Cooperative’s members, our colleagues, our customers, our consumers, our partners and society more widely in our region and beyond, our businesses and their professional ecosystem – to help them evolve and “work together” (a value that is dear to us) more efficiently and to collaborate differently, to innovate, and to move faster and further… We start this journey with an P.04 by Christoph Büren, President of the Group, who OVERVIEW discusses how far we have come and the path forward. We continue with the presentation of P.08 to understand the singularity of our cooperative, entrepreneurial OUR BUSINESS MODEL system and governance, to introduce our business portfolio and the key figures of the 2022- 2023 financial year. “ ” P.16 , we have chosen to share a few of our challenges WHAT CONNECTS US with you as well as the perspectives of some of our stakeholders. “ ” P.28 , FOSTERING CONNECTIONS is where we will talk action and results. First we discuss P.30 , our innovative programme to help cooperative members TRANSITIONS shift towards regenerative, productive farming methods to address climate change and protect biodiversity. Read about all our other initiatives and LINK projects, which show our commitment to cultivating and growing our connections with the planet, for the climate and biodiversity; with and between VIVESCIA’s people; with our customers and stakeholders; for our industries and our regions. Our journey ends with a P.50 : we look back at the PANORAMAOF 2022-2023 highlights of the past year in chronological order. This consolidated report is the sum of our convictions and our ambitions. It explains why, born under the spirit of cooperation, VIVESCIA Group is all about connections, and how we will all continue to promote growth and progress for farming, food and society. LET’S CULTIVATE THESE CONNECTIONS TOGETHER 1
A MODEL CREATED BY FARMERS FOR FARMERS THE GRAIN COMMUNITY Expertise and business lines 10,000 6,900 member-farmers own the employees divided between VIVESCIA cooperative our agricultural and food processing businesses THE GROUP’S KEY FIGURES FOR 2022-2023 52 % 55 €4.6 billion €195 million €122 million of revenue generated production sites revenue EBITDA of investment. on international around the world markets 2
PROFILE OF THE GROUP 2022-2023 THE COOPERATIVE AND ITS AGRICULTURAL SUBSIDIARIES Aisne Ardennes Reims Marne Meuse Paris Seine-et- Châlons-en-Champagne Marne Consulting and Grain trading Troyes services Vosges Aube Haute-Marne Yonne Haute-Saône Côte-d’Or Doubs A KEY PLAYER Transport Seeds IN THE NORTH EAST OF FRANCE Viticulture Farm supplies VIVESCIA INDUSTRIES One of the world’s leading malt Leading French miller One of the biggest manufacturers and the only European frozen French-owned maltster bakery manufacturers Europe’s second- Leading regional Research and biggest semolina animal feed producer biotechnologies maize processor Natural and delicious products, and brands that are well-known to the public 3
OVERVIEW BY CHRISTOPH BÜREN Overview by Christoph Büren, President of VIVESCIA Group Four years ago you started a process of developing and transforming VIVESCIA. Is it advancing in the way and at the pace you intended? Yes, and that’s very satisfying for the board, given the back-to-back crises of the last four years. This year again – like most of our industry peers – we had to contend with extremely volatile markets, historically high in昀氀ation, and a great deal of economic and geopolitical uncertainty. Our efforts are gathering momentum with every passing year. The Ma Coop 2025 programme has taken our Cooperative forward and established a solid foundation for 2030, helping member-farmers in our territories lay the groundwork to future-proof their businesses. These farm managers are facing considerable challenges in terms of both environmental impact and 昀椀nancial performance. Ma Coop 2025 provides a framework for launching new projects and tackling a range of concerns, running the gamut from climate adaptation, agronomic innovation, and creating value through new supply agreements (such as that of our emblematic Francine brand), revolutions in logistics and our farm delivery policy, to new services, like the online sales platform we launched this year. It’s a similar picture across our food processing businesses, which have seen progress on all fronts. Now our fundamentals are sound – after four years of hard work, we’ve managed to turn things around. We’re pleased to see growing collaboration between our agricultural and processing businesses. Our sustainable development policy, LINK, is closely entwined with the Group’s overall strategy, injecting fresh energy and driving innovation. It runs through all our businesses, especially where there’s a focus on climate change, decarbonisation or biodiversity. The Group is growing into itself more with each passing day, revealing and asserting what makes us who we are. Let’s zoom in specifically on the 2022-2023 financial year. Do the results reflect the transformation that’s underway? Given the unsettled economic backdrop, I think it’s fair to say that our Group has shown impressive resilience, as they say. We managed to improve our 昀椀nancial results, as measured by EBITDA, exceeding our budget to reach almost €200 million this year. The Group also distinguished itself through various development projects and new initiatives. Thanks to rigorous management and our tremendously energetic and creative workforce, we’re able to run innovative projects, which make good economic sense, in a joined-up way. For instance, we’ve made several investments to drive our growth, including a new malt house in Mexico (€112 million), a new logistics platform for our centre of excellence in viennoiserie production at Romans- sur-Isère (€10 million), a new production line serving our industrial biotechnology operations (€8 million), and a new production platform for wet compound feed intended for livestock (€2.2 million). We’ve invested a further €88 million in modernising our silos and upgrading our information systems, as well as developing online services like mobile apps and digital storefronts – including France’s 昀椀rst virtual marketplace for artisan bakers. 4
OVERVIEW BY CHRISTOPH BÜREN So with the transformation now well underway, we’re expecting to see even better results and value creation within VIVESCIA Industries’ businesses going forward. Olivier Miaux and his operational directors have their roadmap well in hand, and are devising a strategy for a new chapter in our story. So, this is a new chapter for VIVESCIA Industries and for the Group as a whole? Yes, that’s the thread that runs through everything over the last few months and it’s top of our agenda for 2024: planning our future, charting the way forward, building VIVESCIA 2030. It’s a shared responsibility that I shoulder alongside everyone on the board and in senior management. Our focus is on joined-up thinking because – there’s no getting away from it – we’re entering a new strategic cycle: the world is increasingly fragmented; geopolitical instability and market volatility are becoming the norm, is getting more expensive to borrow, and the global agenda is dominated by the issues of climate change and biodiversity, which are central to our agricultural, food and energy chains. Thanks to our position at the heart of plant and grain agri-food ecosystem – with all the specialist know-how that implies – we’re well placed to secure our future and create economic, environmental and social value for our farmers and their regions, for our customers and partners, and for consumers and wider society. Isn’t that exactly the point behind the TRANSITIONS programme you launched in September? Yes. We’ll need to cooperate in new ways as we adapt to the many coming transitions in agriculture, food and energy. TRANSITIONS encapsulates the paradigm shift that will be required. It’s a pioneering programme that offers a systemic whole-farm solution, built around an innovative agronomic approach and 昀椀nancing model, with extra support provided to farmers. TRANSITIONS aims to help 200 farmers in our region today – rising to 1,000 by 2026 – as they shift to regenerative, productive, eco-friendly agricultural methods that promote biodiversity and 昀椀ght climate change. At its core, it’s about building a unique collaborative working relationship between upstream and downstream sectors. Building a coalition like this is no small endeavour, it takes a lot of energy and conviction. TRANSITIONS is innovative, but above all, it’s tangible. I’m extremely proud of it! And I commend the dedication of all the people who have worked hard to bring this project to fruition, and who will keep driving it forward in the future. Now that we’ve successfully launched the project, we have to scale it up by bringing more member-farmers on board, while working in parallel to persuade our partner customers to sign up as well. We need to stand together to address the challenges of climate change, decarbonisation and maintaining biodiversity. There’s strength in unity – this motto was the founding principle behind our cooperative Group, and I think it’s more to the point today than ever! Should we view TRANSITIONS as a pointer to the VIVESCIA Group’s future direction? Absolutely, if we’re talking about innovation and thinking outside the box! Innovation isn’t just about technology, although obviously that’s important in terms of products, agronomy, industrial equipment, information systems, and so forth. Innovating also means daring to think differently. It’s a mindset, it’s about making connections and cultivating them, so you generate new synergies and greater agility. These are essential ingredients that will underpin our existence going forward, keeping us competitive, sustainable, and performing well. TRANSITIONS undoubtedly paves the way for us to write a new chapter for VIVESCIA Group. To analyse VIVESCIA Industries’ CCAHIER DES AAHIER DES ACCTIONNAIRESTIONNAIRES VIVESCIA INDUSVIVESCIA INDUSTRIES 2022-2023TRIES 2022-2023 OLIVIER MIAUX Gérant de VIVESCIA Industries Results and future prospects, VIVESCIA Industries Une performance économique a démontré sa résilience et confirme sa capacité de en amélioration dans reconquête et de développement profitable et durable à moyen terme sur ses différents marchés, un environnement complexe grâce à la passion, à l’engagement managing director Olivier Miaux et à l’expertise de ses équipes. Les résultats 2022-2023 de VIVESCIA Industries sont supérieurs aux prévisions budgétaires et à l’an dernier dans un environnement inflationniste persistant et de consommation morose. soudaine et de forte ampleur de leurs OLIVIER M. : Je tiens à souligner que ROBERT O’B. : Effectivement, Quel est le bilan de l’exercice écoulé, quelles sont les perspectives pour 2023-2024 ? Échanges avec charges, en particulier des coûts sur le reste de notre portefeuille, l’incertitude demeure concernant Olivier Miaux, gérant de VIVESCIA Industries, et les directeurs généraux des trois grands métiers de VIVESCIA d’électricité. Notre propre facture qui représente 10% de notre chiffre l’évolution de la demande des Industries : Pierre Garcia (Grands Moulins de Paris), Robert O’ Boyle (Délifrance) et Olivier Hautin (Malteurop). d’électricité a triplé ; notre 昀氀otte de d’affaires, les activités maïserie consommateurs, qui reste très camions est également sensible aux (KALIZEA), nutrition animale 昀氀uctuante. Nous avons passé ce prix du carburant. Parallèlement, nous (NEALIA) et biotechnologies cap dif昀椀cile en mettant en place des talks to the three directors of avons poursuivi la mise en place de (ARD) ont réussi à dégager des actions et des réponses adéquates QUE RETENEZ-VOUS DE L’EXERCICE 2022-2023 ? sur les deux derniers exercices par la hausse des coûts. Sur l’exercice, 昀椀lières transversales à l’échelle du performances satisfaisantes. face à la crise de ces 18 derniers mois. rapport à celles supportées en 2020- l’EBITDA a progressé de 136 à Groupe avec notamment la montée en Nous allons poursuivre notre marche OLIVIER MIAUX : Nous avons connu 2021. Au global, cela représente 149 millions d’euros, grâce aux plans puissance du Club Francine. DANS CE CONTEXTE, ÊTES-VOUS CONFIANTS en avant. Les segments premium une in昀氀ation d’une ampleur inédite un surcoût de près de 800 millions d’ef昀椀cience opérationnelle déployés POUR VIVESCIA INDUSTRIES ET SES ACTIVITÉS ? et végétal connaissent une bonne de l’ensemble de nos coûts, pour la d’euros. dans toutes les activités. OLIVIER HAUTIN : Chez Malteurop, dynamique. À titre d’illustration, seconde année consécutive. Elle a été Malgré ces vents contraires, nous ce fut une année de contrastes. OLIVIER M. : Même si nous manquons notre investissement dans notre couplée à une forte volatilité des prix avons réussi, grâce au travail ROBERT O’BOYLE : Je résumerai l’exercice Nos coûts variables en Europe ont de visibilité sur l’évolution de la site de Landévant, en Bretagne, va en raison d’un contexte géopolitique des équipes, à améliorer notre en disant que ce fut une année de augmenté de 50 à 80 % par rapport à consommation qui est, à l’heure où accompagner ce développement. the milling, frozen bakery and chahuté. Ce contexte in昀氀ationniste a performance économique par rapport résilience et d’agilité pour Délifrance. l’exercice précédent. En anticipation nous parlons [octobre 2023], en pesé sur la consommation alimentaire, à l’exercice précédent. Cette évolution Il nous a fallu gérer simultanément de ce mouvement in昀氀ationniste, retrait, particulièrement en Europe, PIERRE G. : Il y a des incertitudes mais en particulier en Europe. Nos charges re昀氀ète les efforts mis en œuvre a昀椀n l’entrée dans une nouvelle période nos clients brasseurs ont surstocké nous sommes con昀椀ants. Nous avons nous avons des atouts solides. Sur le externes ont bondi d’environ 50 % de compenser progressivement in昀氀ationniste exceptionnelle, des en 昀椀n d’année 2022. Nos résultats traversé des tempêtes sévères marché de la meunerie, l’impact du craintes de pénurie de matières sont en net progrès par rapport aux depuis quatre ans, avec deux années prix du blé comme celui du coût de premières, d’ingrédients ou encore exercices précédents. L’année 2022- de crise sanitaire suivies de deux l’énergie est à souligner. Mais nous d’emballages et des mouvements de 2023 est également marquée par années d’in昀氀ation inédites. Mais nos avons la chance d’avoir des équipes volumes incertains. Parallèlement, une nouvelle étape importante de équipes ont fait preuve d’énormément très professionnelles. Ensuite, cela fait nous avons gardé le cap sur notre développement avec le démarrage de d’agilité et de ténacité durant cette maintenant plus de dix ans que nous malting businesses – Pierre politique innovation et commerciale notre nouvelle malterie de Meoqui, période ! Ces événements nous ont sommes en train de restructurer notre pour accélérer nos développements au Mexique, en juillet 2023, d’une fait grandir, et nous en avons pro昀椀té outil de production, notre schéma dans le food service et les réseaux capacité de 120 000 tonnes. Dans pour continuer à préparer le futur, en logistique, nos équipes commerciales, hors domicile. une démarche vertueuse du champ investissant dans la modernisation, tout en poursuivant la digitalisation au malt, cette nouvelle implantation, la digitalisation de nos outils et dans de nos activités, comme en témoigne PIERRE GARCIA : Nous avons également une première pour un industriel du de nouvelles capacités. Oui, nous le lancement, cette année, de notre ressenti un repli de la consommation malt dans ce pays, répond aux besoins sommes con昀椀ants dans notre capacité marketplace, la première en France sur nos marchés clés. Les Grands des brasseurs sur un marché très à renforcer nos positions sur les pour les artisans boulangers. Nous Moulins de Paris ont dû faire face à dynamique en consommation de bière marchés et à continuer à améliorer avons bâti un plan de développement Garcia, Robert O’Boyle, and Olivier une nouvelle problématique chez nos mais dé昀椀citaire en malt. progressivement notre performance commercial offensif pour ce nouvel clients boulangers, celle de la hausse économique. exercice 2023-2024, pour tous nos 0808 0909 Hautin. 20231102_VIVESCIA_CDA-V7-IMP.indd 820231102_VIVESCIA_CDA-V7-IMP.indd 8 20/11/2023 20:23:4020/11/2023 20:23:40 20231102_VIVESCIA_CDA-V7-IMP.indd 920231102_VIVESCIA_CDA-V7-IMP.indd 9 20/11/2023 20:23:4220/11/2023 20:23:42 5
Our cooperative Group’s has diversified From North-East its activities. Its businesses meet the expectations of the food industry and consumers. France Our Group is global, just like the markets it serves, but we remain a grain cooperative at heart, and we use our international reach to serve our local territories. Dunkerque Aire-sur-la-Lys Béthune Martainville- Landrecies Épreville Gennevilliers Reims Paris Verneuil-l’Étang Landévant Theix Briare Surgères Bordeaux Romans-sur-Isère Rethel Pauvres Avignon Bazancourt Marseille Reims Metz Saint Martin-sur-le-Pré Pringy Einville-au-Jard Vitry-le-François Dompaire Brienne-le-Château Aisne Ardennes Reims Marne Meuse Paris Meurthe- Châlons-en-Champagne et-Moselle Milling Seine-et- Marne Frozen Bakery (BVP) Troyes Vosges Aube Haute-Marne Malting Yonne Haute Saône Maize processing Côte d’or Animal feed - Aliane Doubs Research & Innovation - ARD Jura Head office of Groupe VIVESCIA 6
OUR SITES to the world 55 25 PRODUCTION COUNTRIES SITES NEW ZEALAND 7
A cooperative, entrepreneurial business model Our business model has been based on the same entrepreneurial principle for the last 100 years: to join forces and pool our strengths to build a sustainable Our purpose is immutable: Creating value for its cooperative members and helping farming business model that benefits them to make a sustainable living from their our member-farmers. profession of agricultural entrepreneur thanks to the strength of VIVESCIA’s business model. Continually strengthening ties between upstream farming activities and Our purpose brings farmers and employees downstream industry with its food together, as part of a VIVESCIA community processing businesses, the Cooperative has that is committed to looking after the earth operations all along the grain value chain and grain, from 昀椀eld to fork, and nourishing and connects the farmers who grow the people, while constantly adapting to their grain to the customers that process it. changing needs and expectations. VALUES THAT UNITE US ACT BE DARE TO WORK FOR TOGETHER GENUINE BE ENTRE- THE LONG-TERM PRENEURIAL The pleasure of sharing Choosing to be ourselves The desire to build Willing to anticipate, our ideas and building by being genuine and fair in our future with boldness to act, and to transmit together efficient solutions our relations. This means and agility by going beyond with a long-term vision, in order to reach our goals knowing how to challenge our limits, creating, with patience and meet tomorrow’s ourselves while respecting innovating and and determination. challenges. others, their culture, rules taking managed risks. and environment. 8
OUR BUSINESS MODEL A history of entrepreneurial farmers going back more than 100 years… PERATIVE ROOTS THE END OF THEI OO AT R F C ES I E RI LD THE 1920s THE 1960s CTO S FA The birth of the The first mills and malt cooperatives that houses in VIVESCIA’s preceded VIVESCIA region in the North-East of France ERNATIONAL DEVE SCIA IS BORN! INT LOPM 2012 VIVE THE 1990s DS EN AR T OW Merger of the Over the years, T Champagne Céréales we have followed and Nouricia our customers to cooperatives, forming the four corners a leading player in the of the Earth agricultural industry PRENEURSHIP, ARO TRE UND EN T TODAY OF HE RIT WO Nowadays, our cooperative PI RL group combines regional E S D roots with international HT growth 9
As VIVESCIA has grown and diversified its businesses, the Group has always sought to improve its governance. Specialised committees, including the CSR and ethics committees created in 2022, were formed, external qualified experts have been brought in, and the administrators’ charter has been a key development. As a sign of the collective desire to improve our governance, the Group has made two commitments to evaluate our practices and training for administrators as part of its sustainable development policy, LINK. Under the supervision of Christoph Büren, VIVESCIA Group’s President, VIVESCIA Industries’ Managing Director, Olivier Miaux; and the Director of the VIVESCIA Cooperative and its agricultural subsidiaries, Véronique Fontaine-Heim, oversee the Group’s 昀椀nancial performance. VIVESCIA cooperative Group has two main management bodies: ➜ The Board of Administrators, made up of 23 administrators – all farmers – who represent VIVESCIA cooperative’s members. It sets the Group’s objectives and strategy and monitors their realisation. ➜ The Executive Committee, made up of 11 directors, which is responsible for the Group’s overall performance and 昀椀nancial results. It works closely with the Board of Administrators and implements a strategy designed to achieve the objectives set by the board. TO FIND OUT MORE AND THE SEE THE MEMBERS OF THE GOVERNANCE TEAM, GO TO www.vivescia.com/en/our-group/our-governance 10
GOVERNANCE VIVESCIA GROUP’S GOVERNANCE BODIES VIVESCIA COOPERATIVE VIVESCIA INDUSTRIES • SICOM, the general partner • Board of administrators VIVESCIA’S MANAGEMENT COMMITTEE • Supervisory board • Section councils and territorial councils GROUP EXECUTIVE COMMITTEE SPECIALISED COMMITTEES • Audit committees • Remuneration committees • Financial engagement committee • CSR committee • Ethics committee 73 90 % meetings with the Cooperative and attendance rate of administrators VIVESCIA Industries’ executive teams for the 14 board meetings in 2022/2023. 23 farmer-administrators (including 1 woman) elected by VIVESCIA 329 cooperative’s members elected farmers (section councillors) in 18 sections (of which 21 women) COUPETZ- SAINT-OUEN 11
Everything starts in the fields… Our agricultural businesses THE COOPERATIVE AND ITS AGRICULTURAL SUBSIDIARIES The past year saw strong market volatility and Reims tension on the availability and price of inputs, Châlons-en-Champagne but the Cooperative rose to the challenge 1,200 and successfully supported members in their Troyes activities and by adding value to their grain. employees committed to managing day-to-day operations, In this chaotic environment, the Cooperative ensuring the expected service levels and its agricultural subsidiaries have delivered and preparing for 2030. satisfying results. 30% of the harvest is stored on-farm. 3.3 of which 401 kt At the same time, it has continued to by Sepac Compagri develop and optimise its logistics, in line with its business objectives. It has million tonnes of also embarked on new initiatives to grain collected prepare itself for the future in the 昀椀elds of digitalisation, climate change and of which 98 kt agronomic innovation with, in particular, the launch of the TRANSITIONS collected for seed programme. Aware of the profound changes taking place in the agricultural factories sector, and ever more in tune with the changing expectations of customers, consumers and society as a whole, the Cooperative will continue to strengthen GRAIN STORAGE BONUSES its ties with VIVESCIA Industries and collaborate with all its value chains. These 3,312 farmers store grain on-farm links are the strength of the model and are decisive for the future of regional €6.7 million agriculture and rural communities for the €8.04/t on average (excl. bi-monthly generations to come. premiums). €17 bonuses for long-term storage and €8 for short-term storage are dependent of strict compliance with the grain collec琀椀on schedule managed by the Coopera琀椀ve. 12
AGRICULTURAL BUSINESSES SUSTAINABLE Reducing greenhouse gas emissions, carbon sequestration, environmental certification, VALUE CHAINS the protection of biodiversity, local prove- nance, varietal selection, traceability to the Low-carbon grain: field, sharing added value… these are exa- BELGIUM a new deal for farming? mples of criteria included in new customers specifications, which determine the volume and the quality of the crops: HAUTS-DE-FRANCE ➜ 26 specific supply agreements on specialty markets. Reims ➜ including 15 for wheat with VIVESCIA Industries and other food Châlons-en-Champagne processing customers. 80 % GRAND EST Troyes Wheat, barley, maize, rapeseed, of our grain is collected peas… and processed within a radius milling, biscuit making, starch, ethanol, glucose, of less than brewing, distillery… 300 km of our cooperative territory. Agronomic innovation International and public quality labels 23 201 600 AGRONOMISTS TRIALS TEST FIELDS NF V30-001 Understanding soil E xamples of speci昀椀c certi昀椀cations and quality labels Find out everything about cover crops TO LISTEN TO THE Learn about low-carbon GRAINS DE CULTURE PODCAST, agriculture SCAN THE QR CODE Adapting farming practices to climate variations 13
A partnership between INRAE and VIVESCIA for agri-photovoltaics VIVESCIA was the first cooperative to join this consortium created by the national centre for research, innovation and Abraham Escobar Gutiérrez, President of the INRA’s centre in the Nouvelle- education on agri-photovoltaics, managed by the INRAE. 50 Aquitaine-Poitiers region and director of the National research Centre for Agri- stakeholders from the research, training and energy sectors photovoltaics; Christian Huyghe, INRAE’s Scientific director for agriculture; have already committed to this initiative about the synergies Philippe Mauguin, the CEO of INRAE; with Christoph Büren and Savine between agriculture and energy production: a welcome Oustrain, on 8 September 2023 at the Châlons agricultural fair. diversification for farmers to help them offset the impact of climate incidents and market volatility. The agreement will facilitate experiments across the Cooperative region and will 2 INITIATIVES TO PREPARE help us with capacity building. FOR THE FUTURE Launch of the TRANSITIONS “Projection climatique 2030”: programme a study launched in October 2022 Our agronomy and CSR teams are working to anticipate climate scenarios for the Cooperative and its regions by 2030, to 昀椀nd the right technical solutions for the future. The digitalisation of farming Arterre – the VIVESCIA Cooperative’s extranet for its members – now has a mobile app: The first mobile app for cooperatives in France! It was designed to meet their mobility needs with a simple user interface. It provides the latest news, geo-localised weather forecasts, grain trading prices, tracks deliveries… and much more. There are already 2,700 happy users. Launch of the e-commerce site, which gives access to all the Cooperative’s products and services. 14
FOOD PROCESSING BUSINESSES … and continues with our food processing businesses Thanks to their agricultural and cooperative routes, VIVESCIA Industries’ businesses are major players in grain processing industries. They create value from every part of the grain, from field to fork, in France and on four 3 million continents. tonnes of grain processed by our businesses in France and around the world Grands Moulins de Paris works with MALTEUROP GRANDS MOULINS DE PARIS DÉLIFRANCE One of the world’s leading The leading French miller, partner A leader in the European maltsters, a specialist of the to artisan bakers and food manufacturers, frozen bakery industry 8,000 barley-malt-beer industry, and a and consumers in kitchens around artisan bakers producer of malted ingredients France with Francine. in France 60 viennoiseries products produced and sold by Délifrance around the world every second KALIZEA NEALIA ARD Europe’s second-biggest Regional partner for livestock A research and development firm maize processor farmers in the north-east operating in the fields of industrial for the food industry of France biotechnology, fractionation, 1 and plant chemistry in 10 beers around the world are produced CCAHIER DES AAHIER DES ACCTIONNAIRESTIONNAIRES VIVESCIA INDUSVIVESCIA INDUSTRIES 2022-2023TRIES 2022-2023 with our malt Malt FOR MORE INFORMATION Le Craft Malteurop Première se met au Kraft production Malteurop renouvelle les emballages de sa gamme de produits destinés aux à Meoqui brasseries artisanales (le marché du craft). Fabriqué à partir de papier kraft (norme de recyclage 95/5) issu de forêts Le marché mondial de la gérées durablement, ce nouveau sac bière a connu d’importantes 100 % français se recycle dans la filière fluctuations en 2022-2023 papier classique. Particulièrement étudié sous l’effet de la hausse pour la conservation du malt, il revêt un READ THE 2023 SHAREHOLDERS’ NEWSLETTER des coûts de l’énergie et du code couleur différent par type de produit Après plus de quatre ans de locaux, formés par nos soins. afin de faciliter la traçabilité de son transport et des pressions travaux, le premier lot de malt Moins consommatrice d’eau contenu. inflationnistes. Grâce à son est sorti de Meoqui (Mexique) en que d’autres céréales, l’orge positionnement international juillet 2023. Implantée au cœur s’adapte parfaitement aux et à sa solide expertise de de l’État de Chihuahua, cette conditions climatiques du pays. plus de 60 ans, Malteurop nouvelle malterie marque une Pour renforcer son ancrage dans Le zéro accident DÉCARBONATION ET EAU enregistre un exercice très triple avancée : une capacité de la région, Malteurop vient de satisfaisant. production de 120 000 tonnes prendre une participation au du travail, c’est possible ! Partenaire privilégié de malt par an ; un partenariat capital de Pelek, son partenaire Nous continuons notre plan de réduction des des brasseurs et des fructueux avec Heineken, l’un des majeur spécialisé dans le négoce La sécurité constitue une priorité de émissions de CO de nos sites industriels avec des distilleurs dans ses 14 pays 2 premiers brasseurs mondiaux, de l’orge de brasserie. chaque instant. Avec des résultats chaudières biomasse. Le projet d’alimentation de d’implantation, l’entreprise et, surtout, le développement probants : plus de huit ans sans accident notre malterie de Séville (Espagne) et la mise en se mobilise pour les servir au d’une 昀椀lière d’approvisionnement avec arrêt de travail sur le site de Gdansk place de systèmes de traitement de l’eau à Rostock mieux en les approvisionnant en orge par des agriculteurs (Pologne) et plus de dix sur le site de (Allemagne) et à Great Falls (États-Unis) illustrent CCAHIER DES AAHIER DES ACCTIONNAIRESTIONNAIRES VIVESCIA INDUSVIVESCIA INDUSTRIES 2022-2023TRIES 2022-2023 en malts locaux de qualité, Baoding (Chine). nos avancées. grâce auxquels ils répondent à l’exigence croissante des investissements consommateurs de connaître % 2,3 Nature ou aux graines, qui optimisent l’origine des produits. 96 l’outil industriel Fort de l’engagement de I.A 30 ans à chacun sa flaguette 3 ses 1 100 collaborateurs, du chiffre 23 millions de Flaguette innove avec deux variétés à ➜ Liscate (Italie) : ouverture d’une ligne de Malteurop poursuit sa d’affaires tonnes de Reconnaître une variété d’orge grâce à son Bon anniversaire aux malteries de découvrir. Fabriqué avec des ingrédients pain boule. croissance, avec l’ambition de réalisé à sites de capacité smartphone, c’est maintenant possible avec la Langerringen et de Rostock ! Une trentième Boulangerie- soigneusement sélectionnés, le pain ➜ Romans-sur-Isère (Drôme) : extension se développer sur de nouveaux l’international production annuelle de solution d’intelligence artificielle (IA) en phase bougie qui souligne l’ancrage durable de sandwich est prétranché et précuit pour de la plateforme logistique, multipliant par territoires et de se diversifier dans 14 pays production d’expérimentation dans notre malterie de Vitry-le- Malteurop en Allemagne, comme sur tous plus de praticité. Le petit plus ? Sa forme 6 la capacité de stockage. vers des marchés innovants. François (France), aux États-Unis et au Mexique. ses territoires d’implantation. arrondie avec de petites fossettes sur ➜ Béthune (Pas-de-Calais) : installation Viennoiserie- le dessus qui rappellent les focaccias d’une machine pour fabriquer le croissant à l’italienne. Le Passionné. 1212 1313 Pâtisserie Baking 20231102_VIVESCIA_CDA-V7-IMP.indd 1220231102_VIVESCIA_CDA-V7-IMP.indd 12 20/11/2023 20:23:5720/11/2023 20:23:57 20231102_VIVESCIA_CDA-V7-IMP.indd 1320231102_VIVESCIA_CDA-V7-IMP.indd 13 20/11/2023 20:23:5820/11/2023 20:23:58 Good Un déploiement accéléré BETTER de notre stratégie RSE Délifrance réalise en 2022-2023 de belles performances sur un marché Pour les collaborateurs plusieurs événements de sensibilisation aux de la boulangerie-viennoiserie- sujets de RSE ont été organisés, portant sur la réduction des émissions pâtisserie dynamique. Une focalisation de CO , le gaspillage alimentaire ou l’égalité femmes-hommes. L’année 2 forte a été mise sur le Food Service, a été marquée par un travail en profondeur pour construire la feuille de CCAHIER DES AAHIER DES ACCTIONNAIRESTIONNAIRES VIVESCIA INDUSVIVESCIA INDUSTRIES 2022-2023TRIES 2022-2023 circuit valorisé et à forte croissance au route climat (ingrédients, fret, énergie) en lien avec le Groupe, en vue de cœur de la stratégie de Délifrance pour les années à venir. la certi昀椀cation SBTi . Dans un contexte de polarisation ID Ingredients du marché, le segment du premium EFFICIENCE SI s’impose comme un fort driver de 14 Avec le déploiement du projet Harmonie la modernisation de nos systèmes est notre nouvelle marque destinée aux valeur ajoutée même si les clients 2 milliards d’information est effective pour nos sites de Marseille, Verneuil-l’Étang, industriels de la boulangerie-viennoiserie et consommateurs sont toujours en Paris-Gennevilliers, Mûr-de-Bretagne et des prestataires logistiques. -pâtisserie traiteur. En un clin d’œil, attente de produits accessibles mais de sites de nos clients identifient toute la gamme qualité. Ainsi, notre croissant signature, production, de viennoiseries d’ingrédients, produits et services au-delà le croissant Héritage, affiche même une dont la 80% produites et Meunerie même de notre expertise meunière. progression de 12 % en volume. Notre moitié en vendues dans le gamme access, la gamme viennoisine, Accompagner France monde chaque progresse quant à elle de 20%. du chiffre année Francine, Le marché du végétal, segment le Food Service d’affaires à le fait-maison nouvelle génération stratégique pour l’avenir, est tout aussi l’international Le contexte économique demeure dynamique, particulièrement en Italie perturbé, cette année. La situation Avec plus d’un produit vendu par seconde en France, Francine est la et encore davantage en Allemagne et Délifrance a mené dans six pays européens – Allemagne, Et le snacking d’or géopolitique mondiale et l’inflation marque de farine préférée des Français. Pour toucher les nouvelles au Royaume-Uni. Un engouement qui se Belgique, France, Italie, Suisse et Royaume-Uni– une étude continuent de peser sur les coûts générations, elle renforce ses prises de parole autour de la cuisine de traduit par une augmentation de 28 % d’envergure sur plus de 40 clients de différentes typologies 2023 est décerné à… SALES ACADEMY des intrants et des matières saison, de la cuisine anti-gaspillage et du mieux-manger, au travers de de nos ventes de viennoiseries vegan. (restaurants et cafés indépendants, chaînes de restaurants et premières, entraînant une baisse de distributeurs) a昀椀n de mieux comprendre les attentes et dé昀椀s du la brioche au fromage Délifrance. Lancée dans 11 pays, la Sales Academy est un programme la consommation. Pour piloter notre campagnes digitales avec, notamment, trois in昀氀uenceuses reconnues dans Cette année a également été marquée Food Service. Les résultats de cette enquête nourrissent notre Élaboré dans l’usine d’Altdorf (Allemagne), sur mesure d’harmonisation et de développement des l’univers de la cuisine. Francine déploie aussi RACINE, sa démarche de par le lancement de la démarche RSE stratégie relationnelle avec ce réseau. Parmi nos premières ce produit gourmand ne contient compétences commerciales. Co-conçu avec plus de 43 performance face à ces vents adverses responsabilité sociétale, concrétisée en particulier par le Club Francine, Baking Good BETTER, pilier majeur réalisations : le déploiement dans huit pays du Smart Guide, un ni colorants ni arômes artificiels. 50 collaborateurs de Délifrance, il allie workshops en trois axes sont renforcés : accélérer la dynamique commerciale et la qui fédère déjà plus de 200 agriculteurs-coopérateurs. En昀椀n, elle élargit sa de la stratégie de l’entreprise et en livret de recettes et astuces, et le lancement d’une campagne présentiel, e-learning, webinars et classes virtuelles. Son gamme de farines engagées avec deux nouvelles références : Label Rouge droite ligne avec LINK, la démarche du sponsorisée LinkedIn, ayant généré d’excellents résultats. déploiement se poursuit en 2023-2024. différenciation marketing ; développer et Préservation des sols et de la biodiversité. Groupe VIVESCIA. notre excellence opérationnelle et affirmer nos engagements RSE. L’ensemble des actions phares 1616 1717 menées par nos équipes en 2022-2023 800 000 s’inscrivent dans cette feuille de route. tonnes de blé 600 000 transformées 20231102_VIVESCIA_CDA-V7-IMP.indd 1620231102_VIVESCIA_CDA-V7-IMP.indd 16 20/11/2023 20:24:0620/11/2023 20:24:06 20231102_VIVESCIA_CDA-V7-IMP.indd 1720231102_VIVESCIA_CDA-V7-IMP.indd 17 20/11/2023 20:24:1020/11/2023 20:24:10 million en moyenne tonnes chaque année de farine produites 7 en moyenne Un meunier Une première moulins chaque année Francine products are sold au cœur des marketplace territoires rien que pour les © Crédit photo : Clément Lemaire boulangers ! DEUX BLÉS En se connectant sur « Notre passion nous rend proche » est la d’une nouvelle version de notre 昀椀lm www.grandsmoulinsdeparis.com, nouvelle campagne de communication de corporate. L’exercice 2022-2023 les boulangers accèdent depuis fin Blé dur et blé tendre : c’est le mélange gagnant de la er Grands Moulins de Paris. Mettant en scène a également été marqué par le déploiement avril 2023 à une plateforme de vente en nouvelle Campaillette lancée le 1 juin 2023. Répondant in France every year la proximité dans toutes ses dimensions, elle de notre démarche de développement ligne qui propose, en plus des gammes aux attentes de nos clients, elle séduit également les s’est déroulée d’octobre 2022 à mars 2023 durable LINK by GMP, en cohérence Grands Moulins de Paris, des produits consommateurs par ses notes de biscuit et de noisette. sur nos réseaux sociaux et dans la presse avec celle du Groupe. et des équipements incontournables de professionnelle. La campagne s’accompagne marchands partenaires soigneusement sélectionnés. Un levier pour simplifier leur quotidien. 1414 1515 20231102_VIVESCIA_CDA-V7-IMP.indd 1420231102_VIVESCIA_CDA-V7-IMP.indd 14 20/11/2023 20:24:0020/11/2023 20:24:00 20231102_VIVESCIA_CDA-V7-IMP.indd 1520231102_VIVESCIA_CDA-V7-IMP.indd 15 20/11/2023 20:24:0120/11/2023 20:24:01 15
WHAT CONNECTS US AT CONNECTS U H S W Checking the maturity of the grain one last time before the harvest 16
WHAT CONNECTS US WHAT 01 CONNECTS Let’s hear some other voices… Here, a few of our stakeholders share US their views about some of the challenges we’re tackling. These are people we’re in regular dialogue with, and who work with us to make progress on issues of common concern. 17
WHAT CONNECTS US The cooperative model: a future-proofing tool The cooperative model is unarguably a positive tool – provided it’s organised and run in a way that fosters continuous improvement. That was the conclusion of the February 2023 forum organised in Reims, France, between Marie Gailliot, a farmer and VIVESCIA Board member, and Véronique Blin, winegrower, President of the Terroirs & Vignerons de Champagne cooperative, Board member of La Coopération Agricole and Chair of its governance commission. 18
WHAT CONNECTS US #cooperativemodel VÉRONIQUE BLIN – The cooperative farming model is both singular and demanding. (...) The performance of a cooperative, and therefore its success, is directly determined by high-quality governance with clear roles for everyone – both elected representatives and operational staff – and a focus on appropriate attitudes and interpersonal skills.. MARIE GAILLIOT – Against the backdrop of increasingly complex and unstable economic and agricultural conditions, it’s imperative that our cooperative model has solid and stable governance if it’s to thrive in the long term. (...) This also gives it credibility and legitimacy in the eyes of the public authorities and the banks, who are watching the situation closely. The forum in Reims on 6 February 2023 featured Marie Gailliot (left), farmer and winegrower, Board member, President of the Mazagran section, member of the Board As everyone knows, Committee and Supervisory Board of VIVESCIA Industries, and leader of the governance good quality governance working group also comprised of three other elected representatives, since autumn 2021 and Véronique Blin (right), winegrower, President of Terroirs & Vignerons de Champagne, board has a direct influence member and chair of the governance commission of La Coopération Agricole. on a cooperative’s performance, and #training #renewal therefore its success. MARIE GAILLIOT –The issues of succession planning, VÉRONIQUE BLIN training, and injecting new energy into our governance bodies – these are top priorities, and they’re very much on the agenda of the VIVESCIA governance working group that I’ve been leading #governance #goodpractice for the last 15 months, working alongside my three elected colleagues. VÉRONIQUE BLIN – I’ve followed the development of this VÉRONIQUE BLIN – Training is very important for HCCA guide with interest. It complements the statutory side of things with recommendations on good practices elected representatives, because being on the in the governance of agricultural cooperatives. Its main board of a cooperative isn’t something you can strength is that it provides a tangible baseline and learn as you go along. To effectively represent suggests indicators for each cooperative to adopt. The the cooperative members, you need an in-depth self-assessment tool is exactly that: it helps you ask the understanding of the issues we discuss at board meetings, which can be extremely complex. So we right questions and take stock of where you are now. It’s also a general handbook, giving practical guidance have to arrange training pathways that match the that – I think it’s fair to say – can be applied to all aspects needs of new board members and 昀椀t the context of life. That’s why I’d encourage everyone to read it... of their business. Another major issue, in my and to put it into practice within their own cooperative view (...) is the question of succession planning. organisation. We still sometimes see older members on the boards struggling to make space for their younger counterparts. (…) SCAN THE QR CODE TO FIND OUT MORE La gouvernance des coopératives agricoles, une question clé pour notre avenir collectif ! 20230201_VIVESCIA_Mag06_Gouvernance-V3.indd 120230201_VIVESCIA_Mag06_Gouvernance-V3.indd 1 03/05/2023 16:19:2803/05/2023 16:19:28 19
WHAT CONNECTS US From the farm… to the agricultural enterprise Agriculture is central to many debates nowadays, yet the vast majority of people are unaware of the socio-economic shifts that have been sweeping through the industry in recent decades. Gaining a better overview of how the situation is playing out across France puts us in a stronger position to support our farmers – now and in the next generations – as they take up the gauntlet of ROUND TABLE 1: OBSERVATIONS. the many challenges before them. Taking stock of exis琀椀ng organisa琀椀onal models for agricultural produc琀椀on. Renewal of the France’s agricultural sector has been hit by workforce and emergence of new agricultural an accelerating succession of upheavals over businesses; work昀氀ow organisa琀椀on (doing the the last thirty years. Farmers now make up work together vs. having it done by others). Par琀椀cipants: Christoph BÜREN, President of the just 1.5% of the country’s working population. VIVESCIA Group; François PURSEIGLE, sociologist Fewer than 400,000 people actively run a farm at Agro Toulouse INP-ENSAT and author of Une today and half of those are set to retire within Agriculture Sans Agriculteurs (“Agriculture the next decade – a quarter of them without Without Farmers”); Geneviève N’GUYEN, agro- having identi昀椀ed a successor. The model of the economist at Agro Toulouse INP-ENSAT; Emmy family farm is collapsing at an ever-accelerating DURBECQ, VIVESCIA member-farmer; Clément pace. This leaves the way open for a whole REGNAULT, VIVESCIA member-farmer; Jean- Baptiste MILLARD, delegate-general, Agridées host of potential recon昀椀gurations of the thinktank; Christine GANDON, President of workforce and of organisational structures. This unspoken revolution1 Crédit Agricole du Nord Est; Thierry POUCH, chief is what the GERMEA economist at the Chambre of Agriculture; Franck Business Chair was set up to study, sponsored SANDER, Vice-Chairman of the FNSEA. by VIVESCIA alongside two other partner cooperatives, Euralis and Terrena. To give us a clearer picture of the current state of affairs and to inform our thinking as we plan for the future, we wanted to discuss its 昀椀ndings 1. Une agriculture sans agriculteurs, la révolution indicible (“An Agriculture Without Farmers: The Unspoken Revolution”) by Bertrand Hervieu and François Purseigle, Presses de Sciences Po, 2022. 20
WHAT CONNECTS US We’re seeing vertical concentration strategies that involve integrating upstream and downstream stakeholders to gain more leverage in the supply chains and markets. At the other end of the scale, businesses are striving for diversi昀椀cation – or even multi-specialisation – 4 September 2023, VIVESCIA Village in Châlons-en-Champagne by combining agriculture with non-agricultural activities like power generation, producing biomass, or providing services and strategic and the general outlook with the two co-holders consultancy. As a direct consequence of this, we’re seeing a huge variety of different of the Chair, sociologist François Purseigle and agro-economist Geneviève N’Guyen, along with organisational models, spanning large-scale all the other stakeholders working in the sector reliance on salaried workers; subcontracting to compensate for the erosion of the traditional or representing the public authorities. During model of sharing work among family members; the two round tables VIVESCIA organised at the pooling resources and skills; or outsourcing so Châlons Agricultural Trade Fair in September 2023, participants produced a wealth of ideas and built a you can refocus on your core business and/or on clearer picture of the role each individual can play higher value-added activities. in shaping and driving forward next-generation farming. Is a farm really a business like any other? In the face of myriad new realities – including The very word ‘agricultural’ a sharp decline in farm workers, the ageing is no longer adequate to demographic of farm managers (one in three is old enough to retire, but has no successor), strong price describe what the business pressure in the agricultural and agri-food markets, does –sometimes it’s altered market and industry conditions, climate essentially a commercial or change, and the transition to more sustainable farming – farms are driven to radical and rapid industrial operation. change, mirroring the business development patterns seen across other industries. FRANÇOIS PURSEIGLE The new Farm to Fork These strategies are chie昀氀y designed with value creation in mind, aiming to produce a secure agricultural policy calls income stream, and they often call for signi昀椀cant for farmers to have a much investments. Allowing non-farming partners, as well as legal entities, to acquire equity in a greater range of skills farm has led to the emergence of new, complex and an ability to optimise legal structures and new forms of governance. 10% of farmers are now at the helm of several their practices and their companies, each in a different sector and all under use of increasingly scarce the umbrella of one holding company. resources…” GENEVIÈVE N’GUYEN 21
WHAT CONNECTS US ROUND TABLE 2: PUBLIC POLICIES AND THE ROLE OF COOPERATIVES IN SUPPORTING CHANGES TO AGRICULTURAL BUSINESS MODELS. With François PURSEIGLE, sociologist at Agro Toulouse INPENSAT and author of Une agriculture sans agriculteurs (“Agriculture Without Farmers”); Geneviève N’Guyen, agro- economist at Agro Toulouse INP-ENSAT; Frédéric Descrozaille, deputy of Val-de-Marne; Éric Girardin, deputy of Marne; Christoph Büren, President of VIVESCIA; Éric THIROUIN, President of the AGPB; Olivier CHAILLOU, President of Terrena; Christophe CONGUES, President of Euralis; Pierre-Yves SIMONIN, President of CAL (Coopérative Agricole Lorraine). . There’s currently a single public policy A new paradigm for a new And as a Cooperative, it’s also incumbent that covers a wide range generation on us to be commercially successful and competitive, so we can offer all our of entrepreneurial Often highly quali昀椀ed, the new generation member-farmers a variety of services strategies. of farmers are leaving it later and later and support tailored to their professional needs. We help them navigate the to start their own business, 昀椀rst gaining experience in sectors outside agriculture, transitions they have to make and ensure FRANÇOIS and not necessarily intending to work their businesses continue to create PURSEIGLE in farming for the rest of their lives. The value. That means they can improve profession must offer farmers an income their farming methods, which bene昀椀ts everyone. that re昀氀ects their investment. Everyone has their own unique vision of what they want to do, and they all expect better Not enough is done support at every stage of the development of their business. When they’re setting to help the public it up, naturally, but also developing it, understand the work and eventually passing on their 昀椀nancial assets (which won’t necessarily take we do, how farming is the form of real estate). This means organised, and what that everyone in this industry will need it’s like to be a farmer to ramp up their skills, so they have a good grasp of every aspect of farming these days... as a business, including the real estate, commercial and industrial/processing Founded in 2021, the GERMEA aspects. These profound changes within CLÉMENT REGNAULT (Groupe d’études et de recherches the sector also call for a major review of member-farmer sur les mutations de l’entreprise current legislation covering areas such as tax, employment, and commercial agricole) teaching and research law, so that the regulations re昀氀ect the chair is dedicated to new forms of reality on the ground. Farmers would be helped by better tax harmonisation, land economic and social organisation of conveyancing, a one-stop shop for setting agricultural production. With support up and selling their businesses – and these are things that the government will SCAN THE QR CODE TO SEE VIDEO OF 4 from federal university Toulouse have to explore going forward. Another SEPTEMBERAND THE 2 ROUND TABLES Midi-Pyrénées, it is coordinated by challenge is learning to communicate more effectively about what farmers Toulouse INP-ENSAT and sponsored are already doing in response to the by three cooperatives: VIVESCIA, many directives in areas such as food sovereignty, biodiversity preservation, EURALIS, and TERRENA. and carbon footprint reduction. 22
WHAT CONNECTS US A changing climate and the transition to more sustainable farming: all hands to the plough VIVESCIA talks to two leading insiders BASTIEN SACHET 1 CEO of the Earthworm Foundation Climate change is everyone’s business, and we have to tackle it together. Each of us has our part to play – the “We need to work with the government, local and regional farmers to move away from authorities, companies, citizen consumers and, of course, farmers. a demand-based system We must realise this huge challenge to one where we build the is also an opportunity, and it’s going supply chain together.” to require us to 昀椀nd a new balance in our relationship with nature. Ever since the Industrial Revolution, we’ve been extracting natural capital to fuel As our name suggests, Earthworm our industrial needs. We need to turn serves as a catalyst, harnessing the things around. That means rethinking energy of different players in the our relationship with farmers, and supply chain to develop new systems placing them back at the heart of that help keep the soil healthy. the value chain. This calls for us to That’s what VIVESCIA is doing with urgently move away from a demand- its TRANSITIONS programme, based system to one where we which offers a unique framework build the supply chain together. This for cooperation between upstream collaborative way of working is all the farmers and downstream processing more crucial because farmers are the industries. This is a promising step bridgeheads of the transition to more towards a new kind of regenerative sustainable, regenerative farming: they agriculture that doesn’t disrupt the bear the responsibility for it and take climate or harm biodiversity. And that’s most of the risks. a win for all of us! 1. Earthworm is a non-governmental organisation (NGO) that sets up practical projects to regenerate soils and forests, working in tandem with local authorities and businesses. Earthworm is a founding partner of the TRANSITIONS programme. The combination of VIVESCIA’s agronomic know- how and Earthworm’s recognised expertise in soil health have been key to developing the programme’s foundation of technical knowledge and the support mechanisms it offers. 23
WHAT CONNECTS US ANTOINE DENOIX 1 CEO of AXA Climate “Companies need to model their business on the natural world.” natural and human-made cycles. AXA Climate supports businesses that are proactively embarking on But as they’re not prepared for this learning pathway. While there this paradigm shift, they have are various ways a company can to reinvent their model. In the transform itself, they must all start past, businesses were organised in the same place: at the local level. in a mechanical way, operating We believe that businesses need to like machines where every cog take a systemic approach to climate is precisely calibrated. In the change. The carbon cycle is just one future, they’ll have to behave like strand, interwoven with all the other living systems that continuously natural cycles that are unravelling; respond and adapt to the needs of operators also need to reduce their ecosystem. Instead of being their footprint in terms of water extractive, and isolated from the and nitrogen, and their impact on living world, they’ll have to become biodiversity. regenerative, and intrinsically connected to the living world. Plus there’s another crucial factor Agri-food players like VIVESCIA to bear in mind – it’s not enough to have a key role in this; given cut down on negative impacts, since that they’re so embedded in the we’ve already gone well past six regions where they operate, and of the nine planetary boundaries. so close to the land, they can help Tackling climate change and spearhead this transformation biodiversity loss call for businesses and act as ambassadors for the to contribute positively to all- universal regenerative business. 1. AXA Climate is an entity of AXA group devoted to climate change and environmental adaptation. To serve this mission, it has four different business lines: insurance, 昀椀nance, training and consulting. AXA Climate is also a technical partner in the TRANSITIONS programme, harnessing its expertise in insurance, and the impacts of climate change on agricultural production, to jointly develop a new model of insurance that de-risks the agricultural transition and thereby helps accelerate it. WHAT ARE THE PLANETARY BOUNDARIES? Swedish researcher Johan Rockström from the Stockholm Resilience Centre led a team of international researchers in quantifying the risks that human activities pose to natural balances. Having identified the nine processes that regulate the stability of the Earth system (climate, biodiversity, forests, freshwater use, ocean acidification, the nitrogen and phosphate cycles, chemical pollution, atmospheric aerosol loading, ozone depletion), the scientists mapped out nine boundary processes that define a safe operating space for humanity to live sustainably in a stable ecosystem. 24
WHAT CONNECTS US Food insecurity in France: a huge social challenge 79 FOOD BANKS throughout France (including overseas territories) BERNARD BONNES Vice-President of Banques Alimentaires Banques Alimentaires has been France’s leading food bank network for 40 years. Today its work is more vital than ever, as combating food insecurity in France and providing universal access to food contribute 224 hugely to fostering social cohesion across the country. We talk to Bernard Bonnes, Vice-President of Banques Alimentaires. MILLION MEALS DISTRIBUTED PER YEAR How does Banques Alimentaires What’s the current state of food work? insecurity in France? First of all, we’re not working alone. We’re seeing a rise in the number of We rely on a network of partners people we serve. We now have 2.4 to provide practical assistance in million people coming to us, which is distributing food and personal hygiene a one-third increase over three years. products. We also do preventative Every day, in every part of the country, work through our Bons Gestes & Bonne we’re facing the consequences of Assiette (“Good habits, good meals”) in昀氀ation. I’m also noticing the diverse 2.4 workshops, showing people how to range of people who are coming. We avoid wasting food. We’re developing get women, retired people, and more MILLION PEOPLE short food supply chains that link up recently, students, and now we’re even SERVED local farmers to distribute farm-fresh seeing working people, some of whom produce straight from the land. are even on permanent contracts... At the moment, 30% of our network’s food aid recipients are single-parent families, 20% are young people aged between 15 and 25, 17% are retired, and overall 40% of them are living in social isolation. There’s an urgent need for action. 25
WHAT CONNECTS US One VIVESCIA New links, more integration and synergies between upstream and downstream activities VIVESCIA’s strength lies in connecting the upstream farmers with downstream food manufacturers. We’re constantly reinforcing those links through our vertical initiatives, and the TRANSITIONS programme will help forge even stronger bonds. Working together, ÉLÉONORE GORKA ANNE-VANESSA PROFIZI the Cooperative and VIVESCIA Industries strive to Agricultural specifications Innovation manager for the and CSR Director, improve conditions for member-farmers, producers Cooperative Grands Moulins de Paris and consumers. Here we listen in on a conversation between the Cooperative’s Agricultural specifications manager, Éléonore Gorka, and Grands Moulins de Paris’s Director of Innovation and CSR, Anne-Vanessa Profizi. 26
WHAT CONNECTS US Anne-Vanessa – I’m Director of SCAN THE QR CODE Innovation, and for the past few months TO FIND OUT MORE I’ve also been responsible for CSR. L’avenir se construit The two are very closely linked! On en filières Analyse - questionnement - reportage terrain the innovation side, my team and I are developing novel 昀氀ours and baking mixes that are easy to use and environmentally friendly. I’m seeing growing demand from our customers for this type of high-quality product, which are both environmentally and socially responsible. long terms. That’s crucial for these supply chains, because they revolve around very In my CSR role, I coordinate the formulation, rollout, implementation and speci昀椀c crop management systems that continuous improvement of our LINK by need to be planned ahead. GMP programme. Éléonore – One of the strategic pillars of So there’s a new emphasis on our corporate plan, Ma Coop 2025, is “working together”? to strengthen ties with our colleagues in VIVESCIA Industries’ processing Éléonore – We work in synergy! Our businesses. This will help us move counterparts at Grands Moulins de forward together, which is a win-win Paris help us to understand the needs situation for all our stakeholders. of customers and how we can meet the expectations of society more widely – Anne-Vanessa – It’s a huge advantage to over the short, medium and long term. know we’re working together towards This helps us plan ahead and keep shared objectives. What’s more, being innovating with our agricultural products. part of the same Group guarantees Basically, it means we have a head start regular, 昀氀uid communication with all over our competitors! the relevant people – both coordinators and specialists – so developing projects Anne-Vanessa – And our colleagues at the together becomes a swift and optimised Cooperative give us an insight into the process. I would add that when it’s an constraints farmers are operating under, internal value chain created by VIVESCIA and the advantages they offer in being Group, you get an even stronger sense able to produce grain that meets our of contributing to making a more sustainable world! Can you tell us exactly what your speci昀椀cations – and those of our clients – roles entail? in terms of volume and quality. Éléonore – I’m in charge of leading the Éléonore – It›s also a way for member- rollout of agricultural speci昀椀cations farmers to generate additional revenues. where member-farmers have signed up For example, Club Francine promotes for speci昀椀c supply agreements. I work environmentally friendly practices that with a team of three people whose role preserve biodiversity, encourage rational is to monitor that the speci昀椀cations have crop protection and optimise fertiliser been met, through on-site or paper audits, management, while also providing Grands to ensure that the traceability data is Moulins de Paris with the means to meet reliable and that the grain complies with its consumers’ expectations. all the criteria we agreed on. With backup from our sales and agronomy teams, we That’s the advantage of the Group’s help the farms to improve their processes. vertical integration... I also collaborate closely with experts within the Cooperative (especially with Anne-Vanessa – Yes, this integration is a our agronomists), and with the teams real boon! We’ve been getting to know at our processing businesses and their each other better over the last two customers, to jointly devise ambitious years, under the impetus of this stronger yet realistic speci昀椀cations. It’s a real team collaborative dynamic within the Group. effort... and a genuine source of pride for We share the same values and the same us all! strategic vision over the medium and 27
02 FOSTERING CONNECTIONS Now is the time for action and results. Let’s take a look at the LINK projects realised during the past financial year, which show our commitment to cultivating and growing our connections with the earth, to fighting climate change and protecting biodiversity; our connections to people, with our customers and our stakeholders; and our connections to our industries and our regions. 28
FOSTERING CONNECTIONS RING CONNECTI STE ONS FO In the search of perfect maturity 29
A collective effort that brings together plant and grain industries upstream and downstream in an ambitious, innovative programme in terms of its agronomic approach and financing model. he aim is, by 2026, to help Faced with climate change and nearly 1,000 farmers in the the challenges of feeding future north-east of France transition to Tregenerative, productive farming populations, as well as the need methods that promote soil health and to meet the expectations of our biodiversity to protect the planet and markets, consumers and citizens, combat climate change. 200 VIVESCIA cooper200 VIVESCIA cooperativative memberse members VIVESCIA and its partners decided to hahavve committed to the project for threee committed to the project for three shake things up with TRANSITIONS, yyears, starting with the 2024 harvears, starting with the 2024 harvest.est. the first large-scale programme of A SOLID AND SYSTEMIC its kind in France. AGRONOMIC FOUNDATION TRANSITIONS is above all about progress, it’s not just an nth quality label… It was designed to work at the leIt was designed to work at the levvel ofel of the farm and its crop rotationthe farm and its crop rotation. It has robust technical agronomic foundations 2023: TRANSITIONS BY based on standards that are recognised by the authorities. It is destined to change in line with the regulations and to re昀氀ect the VIVESCIA MAKES ITS latest scienti昀椀c understanding. It is based FIRST STEPS on performance indicators. Farmers, who choose to join the programme for a three-year period, undertake to implement various measures (cover crops, using new forms of nitrogen, crop rotation, etc.), to show progress on various agronomic indicators and to achieve prede昀椀ned environmental results: reduction of greenhouse gas emissions, soil resilience, carbon sequestration and the protection of biodiversity. They remain free to choose their own farming practices based on their soil, the local climate and their business model. 30
FOSTERING CONNECTIONS 8 September 2023: the launch of the programme at the Châlons-en-Champagne Agricultural fair TRANSITIONS inspires a new spirit of cooperation between stakeholders in the plant and grain industries. TRANSITIONS is an optimistic and positive vision of a collective that believes in proactive, sustainable and high-performance agriculture. Your Cooperative and the first customers that decided to support TRANSITIONS by buying the first tonnes of grain — Avril and its subsidiary Saipol, Tereos, Roquette, with the STRONG, PERSONALISED SUPPORT: companies of VIVESCIA Industries, and with our A KEY FACTOR OF SUCCESS other partners — launched a movement made The support and training for farmers involved relies with and for farmers, a coalition of the willing on expert teams on the ground: around 30 trained, who share the same language and is destined expert VIVESCIA sales representatives have to grow. Our partner customers are convinced volunteered, backed up by agronomic experts. that everything starts in the field with you, to The individual and collective support focuses on rise to the challenge of climate change, food the trtraceabilityaceability of farming practices — which is production and energy. essential for providing robust information to our customers — adviceadvice, and the development of an CHRISTOPH BÜREN individual action planindividual action plan to help the farmers improve President of the Group on targeted indicators. SIGNIFICANT FINANCIAL SUPPORT The agricultural transition is above all TRANSITIONS’ 昀椀nancial model is based on sharing thesharing the about finding solutions to de-risk farming. cost with downstream food processing customers.cost with downstream food processing customers. Changing farming practices while The entire value chain of large-scale 昀椀eld crops is maintaining yields implies two levels of involved, including the companies of VIVESCIA Industries and the Cooperative’s other partners protection — to ensure financial security — customers who are themselves committed to for farmers and the technical reliability of decarbonising their value chain by 2030 and protecting the solutions offered. biodiversity. Each farmer involved in the project bene昀椀ts from signi昀椀cant 昀椀nancial support*. VALÉRIE FRAPIER Head of CSR and director of the TRANSITIONS programme ROBUST DATA AND DIGITALISATION: THE CORNERSTONE OF THE TRANSITIONS PROGRAMME Improving farming practices CUSTOMER REPORTS VIVESCIA DATABASE Higher crop prices *Compensation for results and progress: on average €100 per hectare for level I (start) and €150 per hectare for level II (performance) per year based on the crops concerned: a premium in euros per tonne of grain that exceeds the additional costs of agronomic measures taken. 31
A PROGRAMME THAT IS HAILED FOR ITS RELEVANCE AND INNOVATIVE MODEL 130 people invited to the VIVESCIA village: customers, partners, the authorities, scientific and agricultural organisations, institutional stakeholders and VIVESCIA employees. “I am delighted to see a major cooperative like VIVESCIA investing in the ecological transition of agriculture and the food industry — with a focus on both upstream and downstream stakeholders. Private companies and cooperatives in this sector have a responsibility and a decisive role to play in this transition. We need solutions that can be adapted at local level to each region, but we also need them to be MARC FESNEAU shared, scaled up and amplified. You are one of the pioneers of this Minister for agriculture movement; we need to promote it and show that people are taking and Food sovereignty action… TRANSITIONS is concrete!” Declaration of 9 September 2023 “To design an engaging, collective approach that shares the cost and risk among all the stakeholders is really setting an example. TRANSITIONS is a model that we must adapt to practically every aspect of our FRANCK LEROY society in the Grand Est region.” President of the Grand Est region 8 September 2023 “VIVESCIA’s initiative addresses many issues that farmers cannot manage on their own. It combines a massive need for support to make the agro-ecological transition a success with a collective, local approach alongside individual actors. The status of cooperative is PHILIPPE MAUGUIN therefore a considerable advantage. Moreover, it has the ambition of President of INRAE engaging both production and processing in the agri-food industry.” 8 September 2023 WITH THE SUPPORT OF PARTENAIRE FONDATEUR 32
FOSTERING CONNECTIONS SCAN THE QR CODE TO WATCH VIDEOS FROM THE EVENT ON 8 SEPTEMBER Videos interviews and testimonials from customers and partners OUR CUSTOMERS TELL US from the launch event WHY THEY JOINED TRANSITIONS “Our goal is to be at the forefront of this new regenerative agriculture, both with our cooperative members and our customers. Through this collaboration, our end customers will benefit from products that are produced using ecological and biodiversity-friendly agricultural practices.” GÉRARD CLAY Chairman of Tereos’s Board of Directors “The TRANSITIONS programme is based on well-established, systemic technical agronomic foundations, which shows that the sector is capable of innovation and pooling its efforts. It could, in the long run, be replicated in our various markets internationally.” XAVIER GALLIOT Sustainable Development Director of Roquette group “Agriculture is a solution to the challenge of climate change, which is why we’re enthusiastic to be joining forces with VIVESCIA, our long-standing partner, to contribute to this initiative and build more sustainable, resilient value chains alongside our partners from plant industries.” CHRISTOPHE BEAUNOIR Managing Director of Saipol Contact us > [email protected] Watch the full interviews of our customers and managing directors: Grands Moulins de Paris, Délifrance and Malteurop > www.vivescia.com/transitions WITH THE COMMITMENT OF C0 M20 Y100 K0 Agence labellisée *** RSE Agences Actives [email protected] C50 M90 Y75 K70 Customers who have joined the TRANSITIONS programme at 30 November 2023. 32 33
TAKING POSITIVE ACTION, LINK MAKING REAL PROGRESS I want to thank everyone for their of biodiversity. Over the last few efforts and enthusiasm, and for their months we’ve forged new partnerships, 2 conviction! LINK permeates the life of including with Symbiose , and in early the Cooperative and the companies of 2024 we intend to start measuring VIVESCIA Industries at every level... the Group’s biodiversity footprint. In fact, it’s the key to its success! LINK The aim is to identify and quantify the is intricately connected to the Group’s biodiversity impacts and dependencies Valérie Frapier, Group director strategy. It brings new ideas and of our different activities, so we can of CSR and external relations, energy, showing us the way forward develop an appropriate biodiversity brings us up to date on the and driving change in a coherent strategy by the end of 2024. The same way. LINK ensures that our position applies to the issue of water, which TRANSITIONS regenerative farming is commensurate with the Group’s is a growing concern. We’re already programme she’s leading mission and scale. It also means we can working on initiatives in this area. We live up to our responsibilities towards think it’s important to take a joined- our employees, our Cooperative up approach – at Group level, and up members, our customers, our 昀椀nancial and down our entire value chain – so Two years on, how are things and banking partners, consumers and we can draw up suitable action plans looking? wider society. and integrate water management as a Positive! I’m very optimistic! It’s been What are your priorities and plans strand of our LINK policy. a busy two years since our board for the coming months? VIVESCIA also launched approved the strategic framework TRANSITIONS this year, which is in autumn 2021: LINK is a robust, To consolidate and embed the so much more than a standard pragmatic and ambitious programme, strategies that will underpin positive CSR programme! which means that it puts great change – towards safeguarding a stable demands on us! We’ve made good climate, soil health and biodiversity; That’s right! We’ve been working progress on governance, setting up the enhancing diversity, inclusion and on it for two years. It’s an innovative Youth Committee and moving ahead quality of life in the workplace; and economic, agronomic and with the Administrators’ Charter. supporting the development of our organizational project which is coming Foundational projects have been regions and our industries. Many to fruition. launched to protect the climate, the are in preparation or have already environment and biodiversity. There been launched. One example is the are others in the pipeline to tackle commitment we made in April to set biodiversity matters. We’ve forged science-based targets (SBTi1 ) as part promising partnerships, both within of our climate strategy: we will reduce and outside the Group, to further our direct and indirect greenhouse gas develop our top-tier value chains, emissions by 29% by 2030. making them ever more virtuous. This LINK is destined to change, and will SCAN THE QR CODE helps bring new momentum to the keep evolving through dialogue with TO FIND OUT MORE ABOUT regions we operate in – and solidarity our stakeholders, and as the Group VIVESCIA’S SUSTAINABLE here is important to us. We can all DEVELOPMENT POLICY, CSR Committee identi昀椀es speci昀椀c LINK be proud of what we’ve achieved! issues to focus on. Take the question 1. Created following the Paris Agreement, and the product of a collaboration between several institutions around the world, including the UN, the Science- Based Targets Initiative (SBTi) is now the benchmark in terms of companies’ carbon trajectories. 2. Created in 2012, Symbiose is an association that promotes biodiversity in the Champagne-Ardenne region with the help of researchers, farmers, hunters, beekeepers, naturalists, technical experts and investors who are committed to protecting biodiversity. See page 43 34
FOSTERING CONNECTIONS MATERIALITY MATRIX THE FOUNDATION OF LINK, OUR CSR STRATEGY LAUNCHED IN 2021 It reveals the convergence of internal and external stakeholders on the importance of and challenges related to our environmental responsibility at Cooperative level and as a Group. • Support for biodiversity • Cooperative governance preservation projects and business model • Help for farmers to reduce their environmental footprint and boost Major climate resilience issues • Reduction of the Group’s • Reduction of the Group’s AKEHOLDERS environmental footprint environmental footprint T • Local development • Health, safety and quality Signi昀椀cant • Product quality of life at work issues • Traceability of value chains • Long-term vision for a farming model for tomorrow and support TIONS OF EXTERNAL S for future generations of farmers A T Intermediate issues • Diversity and Inclusion • Talent retention and development EXPEC Intermediate issues Signi昀椀cant issues Major issues EXPECTATIONS OF INTERNAL STAKEHOLDERS PROGRESS OF THE LINK PROGRAMME The signature of a The TRANSITIONS Launch of the LAUNCH MARCH five-year partnership Launch of the FEBRUARY programme is presented JUNE assessment of with Symbiose, an Environmental to the cooperative’s OF LINK Charter farmers VIVESCIA’s association that works biodiversity on biodiversity footprint 2021 2022 2023 The signature Launch of the Commitment to SBTi Results of a OCTOBER of a three-year SEPTEMBER impact assessment OCTOBER on our climate MAY study on the local partnership with the for climate change socio-economic FROM association of French on agriculture in the objectives for 2030 impact of VIVESCIA JANUARY 24 food banks Cooperative region Board/executive committee CSR workshops Group CSR committee 35
Climate change, biodiversity, demographic pressure, global food security, the energy transition… VIVESCIA believes that its agri-food businesses have a major role to play in facing these challenges. With LINK, the Group’s cooperative farmers and employees have reinvented and ramped up its sustainable development policy. It features 20 commitments with related objectives, indicators and projects, most of which are already underway. Our connections are central to our cooperative business model > Aim for excellence in cooperative to guarantee the long-term survival of our business model. > Ensure we always do business transparently and ethically. > Use effective governance and constructive dialogue with our stakeholders to make sustainable development an integral part of how we do business. Our connections to the planet CLIMATE > Continue to reduce greenhouse gases (GHG) from our direct scope (-20% between 2015 and 2025).* > De昀椀ne our “climate strategy” by autumn 2022, to contribute to carbon neutrality by 2050, and roll it out to all our businesses. > Evaluate carbon storage and greenhouse gas (GHG) emissions of “theVIVESCIA Farm” (the sum of VIVESCIA Cooperative’s members’ farms) by the summer of 2022, and initiate low-carbon programmes. AGROECOLOGICAL TRANSITIONS, BIODIVERSITY & PACKAGING > Act as a driving force and in昀氀uencer for VIVESCIA member-farmers in terms of the agro-ecological transition and soil conservation. > Evaluate our biodiversity footprint and work to make a positive impact through virtuous farming and industrial practices. > Minimise the environmental footprint of our packaging by adopting eco-design approaches and ramping up recycling. MANAGEMENT ENVIRONNEMENTAL > Promote the Group environmental charter created in 2022 and ensure ail sites comply with it. *Thiscommitmentischangingtobeinlinewithour2030climateambi琀椀ons:-42%directGHGemissions(scopes1and2),byvolume,inaccordancewithour SBTi commitment 36
FOSTERING CONNECTIONS 20 50 100 commitments objectives monitoring and management indicators Our connections to people HEALTH AND WELL-BEING IN THE WORKPLACE > Provide a safe workplace where well-being is paramount by preventing psychosocial hazards and creating a stronger safety culture. TALENTS > Boost the Group’s employer brand and increase colleague employability. DIVERSITY AND INCLUSION > Actively promote equality of opportunity, gender equality, diversity and inclusion. CULTURE > Promote a Group culture and cultivate our unique cooperative farming DNA. Our connections to the value chain & the land SUSTAINABLE VALUE CHAINS: FROM GRAIN TO TABLE > Contribute to the development of healthy, diversi昀椀ed and affordable food through responsible value chains. > Promote our human chain and our grain chain through our agronomic know-how and by developing VIVESCIA’s vertical integration. > Develop the Francine brand through a more socially responsible approach. VIVESCIA’S COMMITMENT TO QUALITY > Guarantee food safety at every stage of production and develop continuous improvement processes while anticipating future challenges. DEVELOPING THE LOCAL ECONOMY & SHARING KNOW-HOW > Drive a dynamic and inclusive economy in the Cooperative’s territory. > Strengthen the positive impact of our French and international production facilities on local communities. > Share our knowledge and know-how, contributing to the development of entrepreneurship and the sustainability of agricultural professions. 37
Governance that’s Our intent at VIVESCIA is clear: we want our Group’s governance to be stable and robust, yes, but also flexible enough to keep evolving and improving. This is all the more important given our size, our responsibilities to stakeholders across our farming regions, our agri-industrial model, and our presence in 25 countries. Achieving excellence in our cooperative governance will ensure our business model remains relevant and sustainable over the long term – and this commitment is integral to our LINK policy. 2 objectives As soon as the HCCA (Haute Autorité de la Coopération % Agricole) published its guide to 85 good practices in cooperative governance in June 2021, our COMPLIANCE WITH THE TRAINING board members recognised HCCA’S GOOD PRACTICES FOR A multi-year training how helpful a tool it is. At COOPERATIVE GOVERNANCE plan that can be that point, we didn’t yet have at 30 June 2023 individually tailored, an Administrators’ Charter (58% in 2020-2021) available from 2024. formally setting out the board members’ rights, duties, responsibilities and values. In 2021 we decided to align our practices In 2023 a questionnaire was circulated to We’d been onboarding new with the Guide des bonnes pratiques des collect feedback about training needs and members smoothly, but we didn’t gouvernances des entreprises coopératives aspirations among board members, which have anything written down! agricoles (“Guide to Good Practice in the informed a new training and coaching Governance of Farming Cooperatives”) plan. Having a Charter gives you an published by the Haut Conseil de la Coopération Agricole (HCCA), with of昀椀cial framework, so everyone the goal of being 100% aligned by understands the rules. 2024. Among our achievements so far: our board adopted the VIVESCIA Administrators’ Rights and Duties MARIE GAILLIOT Governance Charter in September 2022. administrator, member of the Board Committee, and leader of the governance working group 38
FOSTERING CONNECTIONS evolving “We need young people to help shape our future. We need their ideas to inform The Youth Committee met the Board of Directors on 12 June our thinking on the path towards 2030, 2023 in Reims, Marne, France. to make our services even more helpful, and to invent new ones…” constantly ALBAN COLLARD, member of the Board Committee, and leader of the Youth Committee VIVESCIA YOUTH COMMITTEE Let’s hear the next generation! In their words… 23 people volunteered for a three-year term as members of the 昀椀rst cohort of VIVESCIA’S Youth “It’s very important to give young Committee, set up by the board in 2022. All aged farmers a say in how agriculture should between 23 and 41, having recently started farming, evolve over the next 20 or 30 years, they mostly come from different professions, including because they’re the ones who’ll be in civil engineering, banking, and former VIVESCIA employees. They’re all motivated by a shared desire to charge of running it...” learn and develop, to initiate new discussions and to GAUTHIER CHARLE, cooperative member-farmer, Seine Brie be part of the action behind the scenes at VIVESCIA. Champagne section On their agenda have been group workshops around mutually agreed topics, discussions with the board, meetings with experts, and even – for those who “Talking to each other, sharing our are interested – training modules specially tailored knowledge and experience – that’s the to them and fully funded by VIVESCIA. A study trip whole point of working cooperatively. abroad is also slated for early 2024. Being on the That’s what will help us prepare for the Youth Committee gives them the opportunity to have future.” their voices heard within VIVESCIA, to contribute to addressing the challenges as we approach 2030, and, MATHIEUX PESCHAUD, cooperative member-farmer, Barrois section naturally, to gain a deeper understanding of the Group. It’s also a chance to broaden their entrepreneurial “In joining this committee I’ve horizons and, why not, learn more about the rediscovered the cooperative model and administrator’s role. Because at VIVESCIA, being an elected of昀椀cial is a real commitment. And it is not how it works, as well as learning about innate! all the different jobs in the grain sector, and about VIVESCIA’S international The 23 members of the Youth Committee reach through its subsidiaries.” “I hope that our ideas will be heard and taken onboard. We’ll also be better able to understand the Board’s decisions so we can defend them before our fellow members, if necessary.” JÉRÉMY ORTILLON, cooperative member-farmer, Barrois section 39
FOSTERING CONNECTIONS Our connection to the Earth Two interdependent pillars: Climate Mitigation and adaptation The carbon revolution is underway and VIVESCIA Group is taking it seriously with an ambitious strategy. Reducing our emissions, adapting our agricultural systems, and finding carbon sinks… Climate change is a systemic challenge that requires us to change how we think, to innovate, and to design new forms of cooperation within our agri-food chain. Mitigation: a roadmap that is aligned with the Science-Based Target Initiative (SBTi)* % GREENHOUSE GAS EMISSIONS The Environmental -14 (INTENSITY) BETWEEN 2015 AND 2022 Management Charter… GREENHOUSE GAS EMISSIONS %(IN ABSOLUTE TERMS) -26 BETWEEN 2015 AND 2022 Beyond our commitments to the climate, TO FIND OUT MORE ABOUT biodiversity and agro-ecology, we decided to OUR ENVIRONMENTAL CHARTER, SCAN THE QR CODE create a framework of ambitious and robust VIVESCIA’s ambition to reduce its carbon environmental principles that will apply to footprint is not new. We initiated projects on all our sites. That is the aim of the Group’s energy ef昀椀ciency and green energy several years ago. Environmental Charter. It reinforces our focus on environmental risk management and is the founding element of a cross-cutting A new 10-year trajectory environmental culture. In addition, it lays out % a certain number of principles connected to In the face of the climate emergency, and key themes: energy, greenhouse gas emissions, as a major player in the grain and plant- 58 water, biodiversity, coproducts and waste, based food industries, in 2021 we made the is the compliance rate nuisances and pollution. Our aim is that 100% decision to review our entire policy and take of VIVESCIA Group’s of our sites are compliant with the charter by it further, setting a new 10-year trajectory. 136 sites with the 2025. Approved by the executive committee We decided to sign up for a robust, world- principles of the in April 2022, the charter was launched in renowned standard based on the Paris Charter following October of the same year on 15 pilot sites to Climate Agreement: the Science Based self-assessment. ensure the relevance and robustness of the Targets Initiative (SBTi). system. A 昀椀rst self-assessment campaign was OBJECTIVE organised mid-2023 on all 136 of the Group’s Our roadmap sets long-term commitments sites in order to de昀椀ne the work that would to help achieve net-zero carbon emissions be required to ensure compliance with the % by 2050, with a 昀椀rst step by 2030: a 29% 100 charter. The results of this self-assessment are decrease in our carbon footprint across progressively being translated into concrete our whole value chain (scopes 1, 2 and 3), of sites will be roadmaps. including a 42% decrease in direct GHG compliant with emissions. Our aim is to certify these the environmental objectives with the SBTi by the 昀椀rst half charter by 2025. of 2024. *Created following the Paris Agreement, and a product of a collaboration between several institutions around the world, including the UN, the Science-Based Targets Initiative (SBTI) is now the benchmark in terms of companies’ carbon trajectories: https://sciencebasedtargets.org/ 40
FOSTERING CONNECTIONS OBJECTIVES 2030 TO FIND OUT MORE ABOUT OUR CLIMATE ➜ Benchmark year: 2020-2021. STRATEGY, SCAN THE QR CODE % -29 of global emissions in absolute terms (scopes 1, 2 and 3) including -42% on our direct COMMITMENT emissions (scopes 1 and 2) Adaptation: a first study at the level of the VIVESCIA cooperative In autumn 2022, the Group decided to learn The 昀椀rst climate forecast work was initiated in more about the subject by launching a massive autumn of 2022 by the agronomy team. study with an expert, AXA Climate*, to estimate the impact of climate change on agriculture by 2030, based on the scenarios of the IPCC. The study aims to understand and measure 20 different soil types the impact of changes to three crucial factors (temperatures, rainfall, and sunlight) on 15 different crops. 17 crops analysed It has four main phases: 1 Analysis of the past and future climates and identi昀椀cation of risks that each crop is exposed to. Evaluation of the risks and opportunities for 2 each crop/region and the prioritisation of the most at-risks crops/regions. For each crop, measurements of indicators 3 of vulnerability with a risk score (intensity x frequency) and impact on yield. Determination of adaptation measures: 4 Changing crops (abandon the most at-risk crops and adoption of new crops, etc.) and farming systems * AXA Climate is an entity of AXA group devoted to climate change and environmental adaptation. It advises companies in the food industry, manufacturing, 昀椀nance and public administration to help them successfully adapt to climate change and have a positive impact on the planet. 41
FOSTERING CONNECTIONS Our connection to the Earth Biodiversity Promoting positive agricultural practices to safeguard biodiversity, protect our planet’s future, and maximise secure food supply. Our goal is to draw up a biodiversity strategy that reduces our impact and manages our dependencies – and as a result, makes our farming systems more resilient to the vagaries of the climate. The scope of this strategy spans our entire value chain, at every level, covering the regions where the Cooperative and its subsidiaries are active, all VIVESCIA Industries sites, and our raw materials supply chains. OUR BIODIVERSITY FOOTPRINT – FROM CALCULATION TO STRATEGY: 2023/2025 1 2 3 RAISE 2023 QUANTIFY 2024 DEFINE THE 2025 AWARENESS STRATEGY Starting point Mapping the Group’s biodiversity footprint Defining a biodiversity strategy Biodiversity Fresco, Top Identifying our most significant impacts and that reduces our impacts and manages Managers Forum dependencies our dependencies 14 Dec. 2022 Quantification – H1, 2024 VIVESCIA Group Biodiversity strategy defined by the end of 2024 Mapping biodiversity impacts at farm level Work to start in spring 2024 At the annual seminar in December 2022, VIVESCIA Group’s top management team participated in a Biodiversity Fresco workshop 42
FOSTERING CONNECTIONS Learning about the Chaourçois ponds project, supported by VIVESCIA in partnership with the non-profit Symbiose, “for biodiverse landscapes,” 14 June 2023 Partnership with Symbiose* across the Cooperative’s region Three complementary objectives were identi昀椀ed: ➜ F or agricultural businesses > increased support for member-farmers to introduce practices that positively impact biodiversity, and measuring the Water extent to which such practices are implemented. ➜ At VIVESCIA Industries processing plants > developing and rolling out a local biodiversity initiative tailored to each site by 2024. ➜ Across the Group > funding large-scale projects, run by Symbiose, that have a positive impact on the regions where the Cooperative operates. Green and blue belts: VIVESCIA Industries contributes to funding three robust long-term projects, with a five-year action plan and Preserving water resources: provisional budget. Our commitment The VIVESCIA Group has already launched several initiatives relating to water conservation. It’s especially high on the agenda within our processing industries, some of which use a great deal of water. Malteurop and Délifrance have several programmes underway to reduce water consumption, which are being monitored within the framework of our Aube project: protecting ponds in the Chaource region. Environmental Charter. Marne project: developing a network of sustainable farming infrastructure With the frequency of droughts across ten municipalities in the south-western Marne region. increasing, both in France and around the world, the Group decided to include water management as a Ardennes project: combating soil erosion through landscaping and creating commitment within our LINK policy. or restoring ponds. During 2024, we will be examining the issue. First we’ll undertake the essential work of identifying and analysing our impacts and dependencies, and that will enable us to draw up strategic plans for mitigation and building resilience. * Symbiose, pour des paysages de biodiversité (“Symbiosis, for biodiverse landscapes”) is a non-pro昀椀t umbrella group for managing biodiversity in the Champagne-Ardenne region, bringing together researchers, farmers, hunters, beekeepers, naturalists, technicians, funders and other interested parties. An environmental protection association that is of昀椀cially recognised as being in the public interest, it comprises 28 member organisations in various categories (community associations, local authorities, professional farming groups). 43
FOSTERING CONNECTIONS Our connections to people Now more than ever committed to our colleagues! We are a community of men and women who are committed to looking after the grain; in their fields, in silos, in production sites, every day, they turn it into flour, malt, bread, and croissants; they share their passion for their craft and pass on their skills… This community is our biggest asset, and it is our duty to look after it. We carry out initiatives in four areas, which starting point and de昀椀ne action plans for the are the same for all our entities in every three years to come. region we operate in, in France and around the world. “Diversity and inclusion”: Ramping up our action on three main priorities: “Safety and well-being in the workplace”: ➜ Gender equality, with an improvement We need to go even further. Launched in in the French “Pénicaud index” for all our 2018, we continue to add to the CARE entities* worldwide and the launch of the programme with a focus on its two LeadHERship programme in September objectives: 2023. ➜ Providing a safe workplace where ➜ Hiring people with disabilities, with well-being is paramount by preventing a policy that is applicable to all our psychosocial hazards and creating a stronger businesses. This project will be scaled up in safety culture. 2024. ➜ Providing an environment that facilitates ➜ Access to employment for young people a healthy work-life balance. by reinforcing partnerships with schools, colleges and universities in France. “Talents”: The entire HR community is determined to attract and retain the best “Corporate culture”: Reinforce the group talent. we are working on two fronts: spirit with the “Grain Route,” a 2 ½ day ➜ Strengthening the group’s employer immersive programme from fork to 昀椀eld brand. devoted to managers was relaunched in the spring of 2023. Other initiatives are in the ➜ Boosting our colleagues’ employability through capacity building. pipeline. A 昀椀rst engagement survey was launched in September 2023 on 6,900 employees to set a *Our gender equality index is between 83 and 99. See page 77. 44
FOSTERING CONNECTIONS JOINING FORCES FOR SAFE, HEALTHY & PLEASANT WORKPLACES We designed our CARE 2025 programme in consultation with the Institute for an Industrial Safety Culture (l’Institut pour une culture de sécurité industrielle, ICSI) to bolster employee health and safety by identifying and managing major risks that people are exposed to within the Group’s various business lines. The second lever consists of developing a “just culture” based on open dialogue and a relationship of trust between staff and managers, and between employees themselves. Our policy looks beyond physical safety and takes psychosocial risks into account. By 2025, our goal is for 100% of our managers and staff to have an awareness of the main work-related stress factors. All our personnel in France have been polled to measure the quality of work life (QWL), in an initial benchmarking exercise drawn up with the French National Agency for the Improvement of Working Conditions (l’Agence nationale pour l’amélioration des conditions de travail, ANACT). This process will be extended internationally and incorporated into the induction programmes of new recruits by 2025. SAFETY WEEK: 5 - 9 JUNE 2023 Organised at the same time every year in our 25 countries simultaneously, Safety Week is a key moment for discussion. The theme for 2023: A Just Culture! AT 30 JUNE 2023 11.98 59% FREQUENCY RATE OF THE GROUP’S SITES had not reported a 0.83 lost-time accident for SEVERITY RATE at least a year. 45
Our connections to our industries and Regions Building together for the future Developing specific supply agreements with our customers is a way of consolidating our vertically integrated grain value chain, but also meeting changing customer VIVESCIA COOPERATIVE expectations and decarbonising agriculture % to fight climate change. VIVESCIA is 26 36 developing partnerships with its regional and international customers to roll out specific PREMIUM SUPPLY OF GRAIN supply agreements. AGREEMENTS sold through specific including 15 for wheat supply agreements with VIVESCIA Industries A collective approach that connects the upstream to and other food the downstream – Launched in 2021, Ma Coop 2025 is a processing customers. corporate project that prioritised the acceleration of speci昀椀c supply agreements, especially developing closer ties with the companies of VIVESCIA Industries. We have also stepped- up programmes like the “Wheat and Barley Route,” which % % enable every player in the same value chain to meet each other, to understand their respective roles, and to become 80 +35 fully aware of the value of this cooperation, which also increases customer buy-in for these programmes. OF OUR GRAIN IS COOPERATIVE FARMERS COLLECTED AND are certified CE2* Concrete results – New initiatives include the launch of PROCESSED compared to 2021-2022 Club Francine, in June 2022 with Grands Moulins de Paris, within a radius of less (346 in total a 100% VIVESCIA value chain from 昀椀eld to fork; the Cœur than 300 km of our and 150 in HEV.**) d’épi programme, and the strong wheat programme aimed at cooperative territory customers who manufacture viennoiserie, buns and brioche. We have also strengthened partnerships with other food industry players and regional mills like Signy-l’Abbaye. * Environmental certi昀椀cation level 2 ** High environmental value 46
FOSTERING CONNECTIONS CLUB FRANCINE: A 100% VIVESCIA WHEAT VALUE CHAIN A source of collective pride Attentive to the needs of consumers, Francine is continually changing to remain relevant for more than 10 million French households, and is committed looking after people and natural resources for a more sustainable future. With Club Francine, It is promoting virtuous farming practices that are in line with a minimum standard environmental standard level II (CE2). 200 cooperative farmers have joined Club Francine This new partnership promotes excellence in farming for ever more virtuous farming practices. But that’s not all. By signing up for three years, cooperative members who join the club are paid a premium on their wheat and they have a direct line to consumers. Thibault BARRE, Cooperative farmer based in Saint-Germain-la-Ville, France, 23 June in Dampierre-sur-Moivre. LAUNCH OF FRANCINE’S GRANDS MOULINS DE PARIS NEW SUSTAINABILITY POLICY % % IN JUNE 2023 20 99 This brand social responsibility (BSM) policy was born in 2022 OF GRAIN PROCESSED OF WHEAT and developed with consumers in a unique approach. More than 2,000 Francine customers shared their expectations with GMP under sourcing PROCESSED agreements without storage and VIVESCIA’s teams. The RACINE roadmap is perfectly aligned insecticide. with VIVESCIA’s sustainable development policy, and it focuses on three pillars, with eight commitments, to address four key challenges: ➜ Embodying VIVESCIA’s sustainable development policy. DÉLIFRANCE MALTEUROP ➜ Meeting consumer expectations. ➜ Ramping up our progress and innovation policy. ➜ Reinforcing our credibility and making it a point of difference % % 100 44 RSPO PALM OIL* OF BARLEY** since January 2021 for certified products made in our European sites. CAGE-FREE EGGS since January 2020 for products made in our European sites. * The Roundtable on Sustainable Palm Oil certi昀椀es the use of sustainable palm oil. ** SAI: The Sustainable Agriculture Initiative brings together major international food manufacturers for to promote sustainable, regenerative agriculture. 47
Our connections to our industries and Regions Promoting economic dynamism One of LINK’s key priorities is the special responsibility that VIVESCIA has to its region of origin. This is a role that is particularly dear to our hearts, and which gives us a responsibility in terms of the agro-ecological transition, the sustainability of farms and solidarity. Entrepreneurship and the desire to open new avenues for growth have been in our DNA for a century. We have decided to go a step further and widen our reach to other communities and regions by taking part in projects to help vulnerable groups, helping business creators, supporting training and career change programmes, partnering schemes to get young people into work, coordinating projects and opening up our doors to our stakeholders and sharing information 276 with them. ➜ Contributing to the local economy - In the Cooperative’s land, in APPRENTICE BAKERS the Grand Est region, VIVESCIA Group’s contribution goes well behind trained. beyond the excellence it promotes in value chains (see pages 46-47). To accurately quantify the total impact of our business, we launched a socio-economic study in autumn 2022 with the help of French start-up Vertigo Lab. Finalised in May-June 2023, it helps us measure the impact of our business on the region, in particular in terms of the number of jobs created (see opposite). This work will help us calibrate and better target our future action. In 2022, VIVESCIA signed a three-year partnership with the French 125 Federation of food banks to 昀椀ght food insecurity in the cooperative’s region. As well as extending the partnership launched in 2020-2021, this ARTISAN BAKERS agreement aims to cover the annual 昀氀our needs of the most vulnerable helped to start their populations in the Marne, Aube, Ardennes, Meuse and Haute-Marne own business administrative departments of France. A second edition of the wheat donation initiative was organised until October 2023 (see inset), and a great wave of solidarity swept over the region with employees from all over the group helping local food banks. 48
FOSTERING CONNECTIONS FIRST SOCIO-ECONOMIC IMPACT STUDY IN OUR REGION: The group’s key role in terms of economic 1,540 8,000 development and employment x5 Using ImpacTer, a study carried out DIRECT JOBS = INDIRECT OR by Vertigo Lab measured the positive WITH VIVESCIA INDUCED JOBS impact of the Group’s businesses and the trickle-down effect on rural areas in the JOBS CREATED ACROSS THE COOPERATIVE REGION THANKS TO VIVESCIA GROUP’S AGRICULTURAL Marne, Ardennes, Aube, Haute-Marne and 9,500AND FOOD PROCESSING BUSINESSES Meuse departments, thanks in particular to 78% local purchasing. 2020-2021 Vertigo Lab study (Cooperative, agricultural subsidiaries and VIVESCIA Industries) CONTINUOUS SUPPORT and solidarity FOR YOUNG FARMERS Between 8,000 AU TOTAL for everyone and €12,000 ➜ €610,000 PAID TO YOUNG FARMERS IN GRANTS ON AVERAGE to help them create their business VIVESCIA’S HUMAN CHAIN: SOLIDARITY IN ACTION ST edition VIVESCIA_AFFICHES_DON GRAIN 2023-V2 copie.pdf 1 23/05/2023 17:55 2022, 1 #dondeblé er DU 1 JUIN AU 30 SEPTEMBRE 2023 ENSEMBLE LUTTONS CONTRE LA PRÉCARITÉ C M J CM MJ ALIMENTAIRE CJ CMJ 65 65,000 46,000 N DE NOS TERRITOIRES tonne 750paquets de TONNES OF WHEAT BAGS OF FRANCINE FLOUR BENEFICIAIRIES 1de blé Avec vous, agriculteurs-coopérateurs, pour ceux donated by the coop- delivered to local food banks in the Grand Est qui le souhaitent, VIVESCIA continue à s’engager avec les Banques Alimentaires pour la seconde region année sur les territoires de la Coopérative. erative’s farmers from by VIVESCIA Transport POUR FAIRE UN DON, FLASHEZ the 2022 harvest. thanks to the support Formulaire disponible sur of Grands Moulins de Paris. En savoir plus : [email protected] nd edition 2023 2 In a new wave of solidarity, with the 2023 86 TONNES OF WHEAT were donated by VIVESCIA farmers. Following a call from the Ministry of agriculture in the autumn, VIVESCIA Groupe and its subsidiary, Grands Moulins de Paris, decided to donate a further 36 TONNES OF FLOUR 100,000 BAGS OF FRANCINE FLOUR donated to Banques Alimentaires (25% of their national annual needs.) ➜ 49
RAMA 2022-20 ANO 23 P A high-precision harvest for the 2023 winter barley. 50
PANORAMA 03 PANORAMA Our journey comes to an end with a few pictures of the key events 2022 of the past year. 2023 50 51
Retrospective 2022 July 2022 August 2022 Harvest LINK by GMP: 2022 A very early harvest let’s go! with mixed results. Link by GMP is Grands Moulins de Paris’s sustainable development policy. It is based on the work done since 2018 on the “A Table” programme and the Group’s sustainability August 2022 framework, LINK. An ad hoc governance team is managing the roll-out of this roadmap, and the progress achieved will be communicated LINK by Délifrance through the #CollectivelyEngaged campaign. Based on three pillars (planets, people, products & know-how) it is called Baking Good BETTER. “Baking good” is a reference to our business: French-style bakery products. “Better” urges us to act now, together, to make sustainability a key part of our action and therefor protect people and the planet. 52
PANORAMA November 2022 VIVESCIA’s human chain in motion! Our wheat drive applauded by the French Prime Minister November 2022 A SIMPLIFIED CARBON FOOTPRINT ANALYSIS FOR FARMERS The simpli昀椀ed carbon footprint analysis designed by the Cooperative and the Group’s CSR teams in partnership with French start-up MyEasyFarm received the “Grand Est Transforma琀椀on” Prize in the environmental category. The aim of this diagnostic tool was: ➜ to understand the reality of VIVESCIA cooperative farmers, and how to best help those who wish to engage in progressive, low-carbon agricultural practices; ➜ to quickly 昀椀nd commercial opportunities for The visit of Elizabeth Borne shines a light on VIVESCIA’s wheat donation initiative, supported by our farmers and low-carbon grain that create value for VIVESCIA employees of the Cooperative and Grands Moulins de Paris. Industries’ companies, and our major agri-food customers; In March 2022, VIVESCIA Group made a commitment to supply local food banks with all the Francine 昀氀our they need ➜ to anticipate market opportunities for carbon for people experiencing food poverty within the VIVESCIA credits in agriculture. Cooperative’s territory. Thanks to this initiative, 65 tonnes of wheat were donated by VIVESCIA’s farmers, which was converted into 65,000 packs of Francine 昀氀our, thanks to the help of Grands Moulins de Paris. A conference-debate December 2022 That was the theme of the conference-debate “Agriculture: food security and climate organised with recognised experts in the context of change – challenges and perspectives” the Group’s 2022 annual general meeting. Politicians, economic and scienti昀椀c experts, and academics gave their different perspectives to help us better understand the challenges and the path forward. SCAN THE QR CODE TO WATCH THE CONFERENCE-DEBATE There were three speakers: Geneviève Pons, Managing director of the European Jacques Delors think- tank in Brussels; Sébastien Abis, Director of Club DEMETER and associate researcher at IRIS; and Christian Huyghe, scientific director for agriculture at INRAE, as well as Christoph Büren. 53
Retrospective 2023 January 2023 February-March 2023 Francine : Initiatives hailed at the 2023 French home baking for the next agricultural fair generation For the 昀椀rst anniversary of our partnership with the French federation of food banks, Francine’s teams organised an “everyone in the kitchen” event for young and old alike as a nod to our “wheat drive.” Congratulations also to the teams at Vauthier Sepac, who won the “sustainable animal nutrition award.” March 2023 Francine boosted its visibility in 2023 thanks Young Farmers’ to three content creators who helped develop delicious new seasonal recipes. French consumers’ favourite 昀氀our brand also Committee: entered into a partnership with the “Jow” app, which aims to simplify home cooking First cohort by helping you only use what you need. This anti-food waste approach is completely 23 young VIVESCIA members, aged 23 to 41, join us for a consistent with Francine’s values and three-year adventure as the 昀椀rst cohort of the Young Farmers commitments. Committee. This committee re昀氀ects the board’s desire to build the Cooperative of the future with and for the next generation. To 昀椀nd out more, read our article on page 39. 54
PANORAMA First decarbonised fertiliser in April 2023 our fields Délifrance, In line with our many decarbonisation initiatives, we are Snacking launching trials over 200 ha using decarbonised fertiliser made by d’Or 2023 Fertiberia. The new cheese brioche wowed the jury and the public! April 2023 A delicious, indulgent product with a golden-brown crust, a melt-in-the-mouth crumb and delicious notes of cheese, thyme, oregano and basil. May 2023 The TRANSITIONS programme is presented March 2023 to the cooperative’s VIVESCIA’S CLIMATE farmers COMMITMENT TRANSITIONS is an innovative programme that aims to help 1,000 local farmers shift towards regenerative, productive agriculture that protects the soil and biodiversity as well After a year’s work, our climate strategy has been approved and shared with our as 昀椀ghting climate change by 2026. stakeholders. Aligned with the Science- Based Target Initiative* (SBTI), it sets a long-term commitment to achieving FOR MORE INFORMATION carbon neutrality by 2050, with signi昀椀cant objectives by 2030. www.vivescia.com/en/transitions FOR MORE INFORMATION Learn more about what VIVESCIA has been doing to fight climate change on pages 40-43. May 2023 [#Biodiversity] A project to protect the ponds and 30 ponds – veritable treasure troves of biodiversity – were restored thanks to a 昀椀ve-year partnership prairies in Chaource! that began in September 2022 with regional association Symbiose. VIVESCIA is supporting biodiverse landscapes with the 昀椀nancial support of Malteurop, Délifrance and Grands Moulins de TO FIND OUT MORE ABOUT Paris. This project aims to recreate and preserve OUR PARTNERSHIP WITH green and blue infrastructure in the Marne, Aube SYMBIOSE, POUR DES PAYSAGES and Ardennes departments. DE BIODIVERSITÉ, SCAN THE QR CODE 55
FOCUS ON… 25 April 2023 The first online marketplace just for bakers It’s up and running! Now artisanal bakers have an online sales platform tailored specifically to them. In just a few clicks they can order products from the Grands Moulins de Paris range, as well as browsing a wide array of products and equipment from other carefully selected suppliers. This essential tool will make their lives so much easier. ollowing an e-commerce site where The marketplace not only gives artisan bakers access to the full range of Grands Fbakers could 昀椀nd its entire catalogue, already opened in 2019, Grands Moulins de Paris products, but also to Moulins de Paris is pursuing its digital products and equipment from our selected revolution to serve professionals in the partners, ranging from small appliances, baking industry. through resale products, to highly technical ingredients. Following a 昀椀rst upgrade in September 2022, Grands Moulins de Paris is now A centralised buying space 2,500 taking it much further. By opening the platform to other traders, the company On www.grandsmoulinsdeparis.com, products for sale has transformed it into a marketplace that bakers can easily order the products they supplements Grands Moulins de Paris need. The products are delivered directly ranges with a selection of ingredients, by each reseller, and customers can track equipment and tools, hot and cold orders and manage their purchases in one beverages, packaging, products for resale, place. This saves them valuable time, which and more. It’s the 昀椀rst online marketplace they can spend running and growing their serving the craft bakery sector. “Our business. company sees itself as both historic and forward-looking,” says Pierre Garcia, the Because it’s tailored to bakers’ speci昀椀c Accessible Managing Director of Grands Moulins needs, this new service strengthens their de Paris. “We’re proud to have forged close enduring relationship with Grands Moulins relationships with bakers, which helps us to de Paris, which our advisors and sales staff 24/7 keep innovating. Designed with their input in the 昀椀eld have been nurturing over the and with their needs in mind, the platform years. on any device positions us as a modern business that moves with the times and is geared to making life easier for its customers.” 56
PANORAMA FOCUS ON… 16 May 2023 Romans-sur-Isère : super-sized storage To support the growth of its viennoiserie business, the leader of the European frozen bakery market, Délifrance, invested more than €10 million in its production site in Romans-sur-Isère, France. The aim was to multiply its frozen storage by six. CHALLENGES AND OUTLOOK With this investment, Romans-sur-Isère viennoiserie products from local, national improves the 昀氀exibility and operational and international customers. This is the ef昀椀ciency of its logistics. Above all, thanks latest step in a huge transformation for the to this extension, its warehouse is now site, which began with the creation of new big enough to meet growing demand for production lines in 2016 DEVELOPMENT KEY FIGURES Romans-sur-Isère becomes a centre of excellence for viennoiserie production. Storage capacity multiplied by six, with space for more than 12,000 pallets of frozen products to meet the production site’s growing volumes. 352 permanent staff. 4 More than €40 million invested in production lines, 5,400 the site in the last five years. operating 24/7. 2 Control of its environmental impact, 78,000 m consistent with VIVESCIA Group’s sustai- tonnes of annual nable development policy, LINK, production and Délifrance’s CSR strategy, capacity. Baking Good BETTER. Energy savings thanks to optimised logistics More than flows, avoiding unnecessary transportation, and 58 the choice of innovative industrial equipment countries delivered. that improves the management of heat sources on cooling facilities. 57
Retrospective Welcome 2023 to the 2023 Wheat route! Grands Moulins de Paris’s new wheat routes introduce VIVESCIA customers to the May 2023 May-June 2023 wheat-昀氀our-bread value chain. This year, some have even come as far as the USA and the Middle East to learn more about our region and our know-how! TO FIND OUT MORE ABOUT THE 2023 WHEAT ROUTES, SCAN THIS QR CODE June 2023 In Francine TWO BRONZE there is RACINE MEDALS FOR LINK BY VIVESCIA VIVESCIA received two prizes at the third edition of the Good Économie Awards, launched by The Good, a key B2B media player in the ecological and social transition. LINK received awards for the simpli昀椀ed carbon footprint analysis, in the “Reducing carbon 83% of French consumers want brands to emissions” category, and the wheat drive, in the “Social impact” category. take real action. With RACINE, we are proud to commit our iconic 昀氀our brand, Francine, to a socially responsible initiative developed with consumers! Four key aims: ➜ To embody VIVESCIA’s sustainable development policy. ➜ To meet consumer expectations. ➜ To ramp up our progress and innovation policy. ➜ To reinforce our credibility and making it a point of difference. 58
PANORAMA August 2023 A MIXED 2023 HARVEST Although the weather conditions were good until the third week of July, the harvest was complicated thereafter due to a series of rainy spells. The harvest was characterised by signi昀椀cant disparities July 2023 in yields and quality depending on the region, soil types and water reserves. NEALIA: Inauguration of a new animal feed platform September 2023 NEALIA and its joint venture Aliane* invested €5 million in the Ardennes An unforgettable department to boost capacity for wet feed production capacity aimed at animal nutrition and Châlons agricultural fair anaerobic digestion. NEALIA thereby consolidates its leading position on A loyal partner of the Châlons-en-Champagne agricultural this segment, a key driver of the agro- fair, VIVESCIA stepped up again for the 2023 edition. Visitors ecological transition and economic were taken on a new, even more immersive journey “from 昀椀eld ef昀椀ciency in the region. to fork.” New for 2023: a bakery was set up in the VIVESCIA village, where visitors could learn to make bread and taste *A 50-50 joint venture with Sanders. bakery products with members of Grands Moulins de Paris’s brotherhood of bakers… And, of course, there were workshops for children and adults, as well as an opportunity to try Francine and Délifrance products! WATCH HIGHLIGHTS FROM THE 2023 CHÂLONS AGRICULTURAL FAIR June 2023 Safety Week focuses on “just culture” For our seventh annual Safety Week, our teams from all around the world discussed the concept of “just culture,” one of the pillars of our care 2025 programme. Ministerial visits and dialogue with institutional stakeholders. 59
FOCUS ON… 13 October 2023 A second line for BioDémo With the launch of the second line of its industrial demonstrator, ARD has doubled its production capacity, giving it the ability to meet strong global demand in the field of industrial biotechnologies. Spotlight on a major advance. o meet growing global demand in molecules that replace fossil fuel-based Tbiomanufacturing, ARD invested €8 products,” adds Managing director of ARD, million in a new production line for Philippe Aubry. “With this investment, its BioDémo demonstrator. we are strengthening our position on an international market where there is strong €8 Built over a period of 18 months on demand for fermentation capacity.” the open innovation platform on the million invested biore昀椀nery of Bazancourt-Pomacle, So, the new BioDémo production and launched in June 2023, this line was line is an answer to the current lack successfully commissioned at the start of fermentation capacity worldwide, of this 昀椀nancial year, doubling ARD’s thereby supporting the growth of the bio production capacity. economy. A wide variety of customers Operating along the entire value chain, around the world from laboratory trials to industrial scale-up, the molecules ARD produces The company therefore has greater have multiple market opportunities, resources to help its customers – from with very varied applications from start-ups to major international groups – 昀椀ne chemistry to the food industry to bring to market bio-sourced molecules and healthcare. This new investment based on renewal carbon and prepare for consolidates its leading position in 35 the post-oil era. “BioDémo 2 has a new 220 the 昀椀eld of industrial biotechnologies, jobs created m³ fermenter which will enable us to carry and ARD is already preparing its next out contract manufacturing for decarbonised developments. 60
PANORAMA THE PIONEERING BAZANCOURT-POMACLE PLATFORM This biore昀椀nery is one-of-a-kind in Europe, bringing together around a dozen stakeholders from the bioeconomy, processing a variety of crops, from grain, beet and wood, turning in them into high- added-value bio-sourced products. This ecosystem combines a From left to right: Olivier de Bohan, President of Cristal Union; Christoph Büren, President of VIVESCIA; collaborative approach with a Henri Prévost, Prefect of the Marne department; Philippe Aubry, Managing director of ARD; Catherine strong capacity for innovation. Vautrin, President of the greater Reims region; Olivier Miaux, Managing director of VIVESCIA Industries; It represents a model for the Anne-Sophie Romagny, Senator of the Marne department; Xavier Albertini, Deputy of the Marne transition to a circular, sustainable department. economy. 61
FOCUS ON… 18 October 2023 Malteurop expands into the Mexican market Located in the state of Chihuahua, in northern Mexico, the Meoqui malt house was inaugurated on 18 October 2023 in the presence of the French ambassador to Mexico, the authorities of Chihuahua, and the Group’s customers, partners and employees involved in BARLEY: THE CROP the project. With a capacity of 120,000 tonnes of malt per year, the OF THE FUTURE plant will help Malteurop’s efforts to win new business in Mexico with a virtuous process from grain to glass. or the Managing Director of site will help meet the needs of local For three years preceding Malteurop, Olivier Hautin, “this brewers on a fast-growing market that is the opening of the Meoqui F malting plant is the culmination of suffering from a shortage of malt capacity. malt house, Malteurop tied almost four years’ work since the initial With 8% growth in 2022, Mexico is one of strong partnerships with local discussions with local farmers, through the the biggest beer markets in the world. farmers to incentivise the dif昀椀culties related to the COVID pandemic, production of malting barley. to the successful start-up of the malting From barley to beer: a virtuous Barley is a strategic ingredient plant in the summer of 2023, when the circle for the production of malt – 昀椀rst batches of malt were produced. This and by extension beer — but project illustrates Malteurop’s unique and there was very little grown in As well as the construction of a malting well-established capacity to develop new plant, this project involved the creation this part of Mexico. Malteurop industrial projects throughout the world.” of a 100%-local supply chain to produce identi昀椀ed the barley varieties malting barley in partnership with best suited to the local climate The first investment in Mexico by 500 local farmers. “Without our teams’ and soil in each part of the a malt producer. agronomic expertise and knowledge of barley region and provided training varieties, it would not have been possible to to local farmers on good agro- Representing a total investment of €112 set up this supply chain,” recalls Christoph ecological and low-carbon farming practices. Büren, President of VIVESCIA Group million, this was the 昀椀rst investment by a maltster in Mexico. With an annual “This virtuous local ecosystem is an extension capacity of 120,000 tonnes of malt, this of VIVESCIA’s original cooperative model.” 62
PANORAMA “Our arrival in Mexico marks a new stage in our malt business’s international development. This new malting plant highlights French industrial and agricultural expertise, while addressing local economic needs and the challenge of sustainability.” CHRISTOPH BÜREN President of VIVESCIA Group From left to right: Olivier Hautin, Managing director of Malteurop; His Excellency Jean-Pierre Asvazadou- rian, French Ambassador to Mexico; Christoph Büren, President of VIVESCIA; María Angélica Granados Trespalacios, representative of the governor of the state of Chihuahua for economic development and innovation; Miriam Soto Ornelas, the Mayor of Meoqui; Olivier Miaux, Managing director of VIVESCIA Industries. Malting barley is now grown on nearly This value chain will have a positive Meoqui 35,000 hectares, with two harvests impact on the local economy. “With its in numbers expertise in the production of malt and per year. Alongside its agricultural and brewing partners, in particular Heineken, due to its close ties to the French farming €112 million whose most recent site is adjacent to agricultural world, Malteurop will contribute invested the malt house, Malteurop has built a to the development of the state of Chihuahua short distribution chain that connects and support the Mexican beer industry,” local needs, economic challenges and concluded His Excellency Jean-Pierre 120,000 tonnes sustainability. Asvazadourian, the French Ambassador to Mexico. Malteurop and Mexico: a great annual production capacity, which adventure that is only just starting. could be extended to 150,000 tonnes. 30,000 tonnes of storage capacity (barley and malt) 100% local malting barley 500 partner- farmers 70 local jobs created. 63
64
GOING DEEPER GOING 04 DEEPER FINANCIAL INDICATORS Coopera琀椀ve 66 Group 68 CSR INDICATORS Summary of our commitments, our objec琀椀ves 70 and our main indicators Table of correspondence with the UN’s Sustainable Development Goals (SDGs) 78 Methodology 80 Report by the auditor, a designated third-party organisa琀椀on, on the non-昀椀nancial 84 performance declara琀椀on 65
GOING DEEPER COOPERATIVE Company Accounts at 30 June 2023 (winegrowing business). VIVESCIA a widespread hike in in昀氀ation. As The 昀椀nancial year ending 30 June 2023 was marked by a gradual a result, all the main operational Industries’ 昀椀nancial position within downturn in markets, following the expenses rose, including energy, its markets strengthened further during this 昀椀nancial year, despite initial impact of the Russia-Ukraine transport and labour. Against this turbulent backdrop, the Cooperative the troubled economic climate. con昀氀ict. Price spikes caused by intense pressure on global trade has stood shoulder to shoulder with The reference price of VIVESCIA gradually eased throughout the year, its member-farmers and customers, Industries’ shares on the exchange although prices remained extremely to help them keep their businesses platform rose to €26.95. Compas also volatile. Grain and mineral fertiliser healthy and viable. The Cooperative’s posted solid results in its key markets for the second consecutive year. prices have seen a steady decline performance was re昀氀ected in an since November 2022, while still EBITDA of €26.7 million for the To sum up, the Cooperative’s 昀椀nancial maintaining their high average levels. 2022-2023 昀椀nancial year, compared This is particularly true of fertilisers, to €19.3 million the previous year. structure remains very solid, with shareholder equity of more than €379 where prices have been shored up by Storage bonuses totalling €6.7 reduced availability. million were distributed to 3,312 million and net debt of €10.2 million, member-farmers. Net income for the which is considerably lower than the year before, due to a reduction in The Cooperative’s 2022 harvest was year fell by €6.3 million, producing down slightly on the previous year, a loss of €5.7 million. Following grain and fertiliser stocks at 30 June 2023. falling by 5% to 2.9 million tonnes. If recent in昀氀ationary pressures, the you add grain that the Group bought 昀椀nancial year ending 30 June 2023 in, a total of 3.3 million tonnes was was also characterised by higher collected. The harvest was early interest rates, with the Euribor thanks to particularly sunny weather rising from -0.50% at the beginning in the summer of 2022, which of July 2022 to 3.40% in June 2023. provided excellent conditions in terms Consequently, the Cooperative’s of both food safety and logistics. operations increased the need for borrowing at a time when interest In total, the Cooperative’s revenue rates were rising sharply. Income from exceptional items stood at reached €1,536 million, up 25% on the previous year, largely driven by €13.3 million, mainly due to the price increases for grain, oilseeds, reversal of provisions relating, on fertiliser and plant health products. the one hand, to the valuation of Operating costs, which were VIVESCIA Industries shares, and on already on the rise, were also hit by the other to its subsidiary Compas 66
GOING DEEPERGOING DEEPER Revenue EBITDA (millions of Euros) (in millions of Euros) 1,536 1,229 26.7 19.3 2021-2022 2022-2023 2021-2022 2022-2023 Net debt Breakdown of revenue (in millions of Euros) by business line 24 % 69.7 FARM SUPPLIES 10.2 72 % 3 % GRAIN SEEDS PRODUCED 1 % SERVICES AND MISCELLANEOUS 2021-2022 2022-2023 67 67
GOING DEEPER VIVESCIA GROUP Consolidated results for the year ended 30 June 2023 new sourcing agreements, including In total, consolidated revenue for In the 2022-2023 昀椀nancial year, the launch of Club Francine for wheat. 2022-2023 reached €4.6 billion, up VIVESCIA Group increased its 20.4% on the 2021-2022 昀椀nancial Despite a climate of in昀氀ation and the pro昀椀tability, despite the climate of geopolitical uncertainty and high volatility of costs, we were able to year. EBITDA, which re昀氀ects the company’s 昀椀nancial performance, improve our 昀椀nancial performance in昀氀ation combined with signi昀椀cant cost volatility, which dampened thanks to the concerted efforts of all reached €195 million, a year-on-year consumer spending on food. our teams. increase of 18.5%. Consolidated net debt had fallen by the end of the year, owing to a For the second year running With grain prices beginning to ease at the end of the year and the VIVESCIA Industries was impacted slight fall in grain prices. VIVESCIA Group continued to roll out its LINK by a steep increase in costs, 昀椀nancial discipline applied across environmental strategy across all its spanning raw materials, food inputs, all our business lines, we ended the activities throughout the year. transport, packaging, and energy, year with debt of €595.8 million, which is a €42 million improvement among others. By negotiating price The harvest was down by around 5% increases with our customers, we on the previous year. Despite a in 2022, mainly because of weather gradually managed to cover the climate of steeply rising interest rates, the Group pursued its investment conditions. The Cooperative and its in昀氀ation on our costs. Despite the agricultural subsidiaries’ revenue slowdown in consumption, all our strategy to expand its production rose by 25% owing to higher prices processing activities saw marked capacity, modernise and maintain its for grain and agricultural supplies, revenue growth. Our operational IT, production and storage facilities, against a backdrop of declining improvement plans enabled us to and drive forward its environmental policy. Work on the new malt house fertiliser consumption. We continued deliver satisfactory 昀椀nancial results, to implement our Ma Coop 2025 which are improved on the previous in Mexico was completed on schedule, and production began there in July transformation plan, stepping up 昀椀nancial year. action on strategic priorities such as 2023. 68
GOING DEEPERGOING DEEPER Revenue EBITDA (millions of Euros) (millions of Euros) 4,583 3,807 195 165 2021-2022 2022-2023 2021-2022 2022-2023 Net debt Breakdown of (millions of Euros) consolidated turnover 638 28 % 596 COOPERATIVE 27 % 6 % MALTING OTHER AGRICULTURAL SUBSIDIARIES 7 % 19 % 2021-2022 2022-2023 OTHER FROZEN PROCESSING 13 % BAKERY ACTIVITIES MILLING VIVESCIA Cooperative VIVESCIA Industries Breakdown of Revenue by region 48 % 30 % 22 % FRANCE EUROPE REST OF THE WORLD 69 69
GOING DEEPER CSR INDICATORS 70
GOING DEEPER SUMMARY OF OUR COMMITMENTS, OUR OBJECTIVES AND OUR MAIN INDICATORS Connections are central to our cooperative business model Coopera琀椀ve governance, ethics and CSR governance Commitments Objec琀椀ves Indicators at 30 June 2023 Aim for excellence in coopera琀椀ve Aim for 100% compliance with the Haut Conseil de la Coopération Agricole governance to guarantee the long-term recommendations of the Guide to self-assessment summary: 84 % at 30 survival of our business model Cooperative Governance published June 2023 (vs 70% in 2021-2022) by the Haut Conseil de la Coopération Agricole by June 2023 Provide elected representatives with a Questionnaire on training needs in multi-year training programme targeting progress the key areas they need to understand to Multi-year training plan to be de昀椀ned effectively ful昀椀l their roles as VIVESCIA by 2024 Group administrators. Ensure we always do business Set up an ethical governance team at 4 Ethics committee meetings transparently and ethically Group level and for each business 11 ethics reports 30 ethics ambassadors Use e昀昀ec琀椀ve governance and Create a CSR governance team at Group 3 CSR committee meetings construc琀椀ve dialogue with our level and for each business stakeholders to make sustainable 2 board/Exco workshops Clari昀椀ed CSR governance CSR development an integral part of how INDICATORS we do business 71
GOING DEEPER Our connection to the Earth Our commitments to the climate Commitments Objec琀椀ves Indicators at 30 June 2023 Con琀椀nue to reduce greenhouse gases 20 % lower GHG emission intensity 14% less GHG emissions since 2014- from our direct scope (2015-2025)* (scopes 1 & 2) by 2025 (vs 2015) 2015 per tonne equivalent -26 % GHG emissions since 2014-2015, in absolute terms 376.6 kTCO e in 2022-2023 2 (vs 377.4 kTCO e in 2021-2022) 2 De昀椀ne our “climate strategy” by autumn De昀椀nition of intermediate objectives for 2030 climate strategy for scopes 1, 2 and 2022, to contribute to carbon neutrality 2030 and trajectories for 2050 on scopes 3 approved in autumn 2022 by 2050 1, 2 and 3 Commitment to SBTi by 1 February 2023 Roadmaps currently being drafted by each business Evaluate the carbon storage and GHG Evaluate the carbon footprint of Simpli昀椀ed carbon footprint analysis emissions of VIVESCIA members’ farms VIVESCIA members’ farms and initiate launched in April 2022 with cooperative by the summer of 2022, and ini琀椀ate low-carbon programmes members low-carbon programmes 1,500 members had conducted the analysis by 15 September 2022 Launch (May 2023) and of昀椀cialization (September 2023) of the TRANSITIONS programme Agroecological transi琀椀on, biodiversity and packaging Commitments Objec琀椀ves Indicators at 30 June 2023 Make proposals and drive change Continue supporting cooperative • 118 trials on agro-ecological practices among VIVESCIA’s member-farmers members to roll out agro-ecological • 346 CE2 and 150 HVE-certi昀椀ed in terms of the agro-ecological practices farmers transi琀椀on, low-carbon methods and soil • 12 projects with partners conserva琀椀on. Evaluate our biodiversity footprint Evaluate the group’s biodiversity Launch in 2024 for the Cooperative and and aim for a posi琀椀ve impact through footprint by end of 2023 VIVESCIA Industries virtuous farming and industrial prac琀椀ces Help cooperative members to implement Webinars on biodiversity farming practices that have a positive Evaluation of AgriBEST™ (software impact on biodiversity. developed by LCA Ouest and CDC Biodiversité) Develop biodiversity projects between Five-year partnership signed with the Cooperative and our processing Symbiose in September 2022 businesses with a direct positive impact 3 large-scale projects supported in the on the Cooperative’s territory. Marne, Ardennes and Aube departments with the support of VIVESCIA Industries * This commitment is changing to be in line with our 2030 climate targets: - 42% less direct GHG emissions (scope 1 and 2), in line with our SBTi commitment. 72
GOING DEEPER Agro-ecological transi琀椀on, biodiversity and packaging (cont.) Commitments Objec琀椀ves Indicators at 30 June 2023 Implement a local biodiversity initiative 9 initiatives identi昀椀ed to date (vs 6 in on each production sites by end of 2024 2021-2022) • 100% of boxes made with recycled Minimise the environmental footprint of Délifrance material (100% by 2025) our packaging by adop琀椀ng eco-design Monitoring of sustainable packaging approaches and developing recycling policy • 96% of FSC-certi昀椀ed boxes (100% by 2025). Eco-designed product packaging • 99% of recyclable or reusable Reduce the weight of each component of packaging. our packaging and work on our products and packaging to reduce the impact of transport. Reach 100% of recyclable or reusable packaging by 2025. Introduce recycled materials into our packaging. Many initiatives to reduce the amount of Grands Moulins de Paris De昀椀nition of their objectives for pack- packaging on several sites (Gennevilliers, aging Briare, Reims, Brienne) • 20 tonnes less paper used on our large Reduce the amount of packaging we use. format bags (approximately 2% paper Increase the proportion of secondary saved) packaging that is recycled. • 94% of our wooden pallets are recycled (up to 7 rotations on average) and 100% Minimise the environmental impact of our broken pallets are sold to recycling of each reprint industries • 77 to 82% recyclability for Francine’s convenience packaging and consumer packs • Elimination of wooden protection on 50% of our large format packaging and replacement by recycled cardboard Continue our involvement 103 Adivalor collection points – in the Adivalor network Cooperative, Sepac Compagri and Compas 2,300 tonnes of waste collected (vs 1800 tonnes in 2021-2022) Management environnemental Commitments Objec琀椀ves Indicators at 30 June 2023 Promote the Group environmental char- 100% of sites compliant with the 58% compliance on self-assessments at ter created in 2021-2022 and ensure all VIVESCIA Group environmental charter Group level following the 昀椀rst reporting sites comply with it by 2025 campaign 73
GOING DEEPER Our connections to our industries and Regions Sustainable value chains: from Grain to Table Commitments Objec琀椀ves Indicators at 30 June 2023 Contribute to the Accelerate the development and joint Coopera琀椀ve development of healthy, construction of traceable, socially responsible 36 % of grain sold through sustainable supply diversi昀椀ed and a昀昀ordable and/or certi昀椀ed crop supply chains. agreements (versus 32% in 2021-2022) (Target: food through responsible Undertake to meet all customer and consumer 45% of grain through sustainable supply crop supply chains. agreements by 2026) expectations in terms of quality, sustainability and quantity in our wheat/barley/maize 1,050 member-farmers committed to industries sustainable supply agreements (versus 1,721 in 2021-2022) -52% Lu Harmony and -51% pea sourcing agreements 80% of grain collected and processed through short supply chains (within a radius of less than 300 km) (versus 81% in 2021-2022) Grands Moulins de Paris 20% of wheat milled through sustainable supply agreements (versus 17% in 2021-2022) (Target: 33% of grain through sustainable supply agreements by 2026) 99% of wheat milled free from storage insecticide (versus 100% in 2021-2022) Malteurop 44% of barley SAI-certi昀椀ed or SAI equivalent (15% in 2021-2022, SAI barley - 昀椀gure not comparable) Kalizea 55% of maize SAI-certi昀椀ed (versus 50% in 2021- 2022) Grands Moulins de Paris and Délifrance Délifrance Responsible sourcing of ingredients for the 100 % cage-free eggs production of our products and a search for natural ingredients and products (Europe and UK) 100 % RSPO palm oil 22 % UTZ chocolate (vs 25% in 2021-2022) Grands Moulins de Paris 100% of baking mixes that contain eggs made with free-range French eggs since July 2021 83% of frozen products containing eggs made with cage-free eggs at end of June 2023 Three Wheat Route meetings organised Boost customer buy-in to VIVESCIA sourcing Promote our human chain and our grain chain through agreements our agronomic know-how and by developing Capitalise on our agronomic know-how and the farming practices of our cooperative VIVESCIA’s ver琀椀cal members to engage our customers and exter- integra琀椀on. nal stakeholders Develop the Francine brand Develop a robust approach Launch of RACINE in June 2023 – Francine’s through a more socially responsible approach brand social responsibility (BSM) policy Strengthen the wheat supply policy by Launch of Club Francine with VIVESCIA connecting it to VIVESCIA cooperative farmers from the north-east of France cooperative farmers in June 2022: 200 farmers had joined the club by the 2023 harvest 74
GOING DEEPER VIVESCIA’S commitment to quality Commitments Objec琀椀ves Indicators at 30 June 2023 Achieve 100% of production sites with 100 % of sites certi昀椀ed (vs 87% in 2021- Guarantee food safety at every stage a certi昀椀ed food safety system by end of of produc琀椀on and develop con琀椀nuous 2022) 2023 improvement processes while an琀椀cipat- ing future challenges 48,800 quality analyses Developing the local economy & sharing know-how Commitments Objec琀椀ves Indicators at 30 June 2023 Drive a dynamic and inclusive economy Contribute to the local economy of rural Impact analysis study: in the Coopera琀椀ve’s territory areas 1,540 direct jobs created and 8,000 • Quantify the economic impact of the indirect and induced jobs (x5) Cooperative on its territory €610,000 in grants to new cooperative • Provide 昀椀nancial support to new members and young farmers cooperative partners and young farmers. • Develop partnerships with local stakeholders. Promote farming know-how, Châlons agricultural fair solidarity and cultural activities in the Nuits de Champagne Festival Cooperative’s territory. Montier-en-Der Festival Signature of a three-year partnership with Banques Alimentaires (association of French food banks) 65 tonnes of wheat donated to 46,000 bene昀椀ciaries in 2022-2023 Strengthen the posi琀椀ve impact of our Contribute to economic development 80 local initiatives (vs 61 in 2021-2022) French and interna琀椀onal produc琀椀on and support for the most vulnerable in facili琀椀es on local communi琀椀es the communities where our production sites are located in France and around the world. Share our knowledge and know-how, Pass on agronomic know-how to 1,050 farmers bene昀椀ted from advice contribu琀椀ng to the development of the farmers who are partners of our or awareness-raising programmes on entrepreneurship and the sustainability international malt houses and maize agronomic practices – Malteurop (vs 856 of agricultural professions processing plants. in 2021-2022) Pass on baking know-how thanks to the 276 apprentices at the Paris bakery and Paris Bakery and Pâtisserie School patisserie school (versus 286 in 2021- 2022) 125 adults retraining (versus 124 in 2021-2022) 253 continuing training courses per year (versus 238 in 2021-2022) Development of entrepreneurship 125 artisan bakers were helped to open a Help artisan bakers in France start a new new bakery business in France (vs 165 in business 2021-2022) Prospec琀椀ve planning Financial support for the GERMEA Be actively involved in developing new academic chair since 2021 knowledge about the farming industry in France over the next 5 years 6 publications including 4 in 2021-2022 75
GOING DEEPER Our connections to people Safety and well-being in the workplace Commitments Objec琀椀ves Indicators at 30 June 2023 Provide a safe workplace where well- Develop a just culture of safety and Frequency rate* (Fr) = 11.98 (vs 10.19 in being is paramount by preven琀椀ng prevent major risks 2021-2022) Severity rate* (Sr) = 0.83 (vs psychosocial hazards and crea琀椀ng a 0.64 in 2021-2022) stronger safety culture 59% of sites have not had a lost-time accident in a year (versus 66% in 2021- 2022) Just culture and major risks: 90% of targeted managers trained (563 managers in total) Prevent psychosocial hazards (PSH) by 79% of all managers/coordinators raising awareness among managers and trained on PSH offsetting the main factors of stress 49% of businesses have rolled out action plans Provide a work environment that 13 quality-of-life work agreements and promotes work-life balance 35 remote work agreements 61% remote work 23% quality of life at work Talents Commitments Objec琀椀ves Indicators at 30 June 2023 Boost the Group’s employer brand and Increase colleague employability 1.4% of the wage bill devoted to training increase colleague employability (versus 2% in 2021-2022) 96% of employees working for the company on the 30 June 2023 followed at least one training course in the previous year (78.7% in 2021-2022) *The increase in the number of accidents is mainly due to ergonomics. Extended leave is one of the reasons for the deterioration of the severity rate. Speci昀椀c action plans are currently being rolled out. 76
GOING DEEPER Diversity and Inclusion Commitments Objec琀椀ves Indicators at 30 June 2023 Ac琀椀vely promote equality of Develop gender equality by taking Professional gender equality index for opportunity, gender equality, diversity into account the feminization of our France: and inclusion industries. Cooperative – 87 (vs 79 in 2021-2022) Grands Moulins de Paris – 99 (vs 94 in 2021-2022) Délifrance – 94 (vs 89 in 2021-2022) Compas – 84 (vs 83 in 2021-2022) ARD – 83 (vs 84 in 2021-2022) VIVESCIA Services – 93 (vs 79 in 2021- 2022) Develop the employment of people with 2.1% of workers with disabilities (vs 2.5% disabilities. in 2021-2022) Culture Commitments Objec琀椀ves Indicators at 30 June 2023 Promote a Group culture and cul琀椀vate Develop Group culture and cultivate our Initiatives include: a multi-language our unique coopera琀椀ve farming DNA cooperative farming DNA onboarding platform, visits to 昀椀elds and discussion between employees and cooperative farmers. 77
GOING DEEPER TABLE OF CORRESPONDENCE WITH THE UN’S Our connection to the Earth Commitments Sustainable development targets Target 7 - Affordable and clean energy 7.2 Con琀椀nue work to reduce GHGs 7.3 for our scope of direct responsibility 7 - Affordable and clean energy 7.2 9 - Industry, innovation and 7.3 infrastructure 9.4 De昀椀ne our “climate strategy” 13 - Climate action 13.1 to contribute to carbon neutrality by 2050 2 - Zero hunger 2.4 6 - Clean water and sanitation 2.5 12- Responsible consumption 6.3 Make proposals and drive change and production 6.4 among VIVESCIA’s member-farmers in 15 - Life on land 6.6 terms of the agro-ecological transi琀椀on, 12.2 low-carbon methods 15.1 and soil conserva琀椀on. 15.3 15.5 15.8 2 - Zero hunger 2.5 6 - Clean water and sanitation 6.6 12- Responsible consumption 12.2 Evaluate our biodiversity footprint and production 15.1 and aim for a posi琀椀ve impact through 15 - Life on land 15.3 virtuous farming and industrial prac琀椀ces Minimise the environmental 12 - Responsible consumption 12.3 footprint of our packaging by adop琀椀ng and production 12.5 eco-design approaches and developing recycling 6 - Clean water and sanitation 6.3 7 - Affordable and clean energy 6.4 8 - Decent work and economic 7.1 growth 7.2 9 - Industry, innovation and 7.3 infrastructure 8.4 Promote the Group environmental charter (currently being dra昀琀ed) 12 - Responsible consumption 9.4 and ensure all sites comply with it and production 12.3 78
GOING DEEPER SUSTAINABLE DEVELOPMENT GOALS (SDGs) Our connections to people Commitments Sustainable development targets Target Provide a safe workplace where 3 - Good health and well-being 3.6 8 - Decent work and economic 8.8 well-being is paramount by preven琀椀ng psychosocial hazards and crea琀椀ng growth a stronger safety culture 4 - Quality education 4.4 Boost the Group’s employer brand and increase colleague employability 4 - Quality education 4.4 5 - Gender equality 5.1 8 - Decent work and economic 5.5 Ac琀椀vely promote equality of growth 8.5 opportunity, gender equality, 10 - Reduced inequalities 10.3 diversity and inclusion 10.4 Our connections to our industries and regions Commitments Sustainable development targets Target 2 - Zero hunger 2.1 Contribute to the development of 12 - Responsible consumption 12.2 healthy, diversi昀椀ed and a昀昀ordable food through responsible crop supply and production chains. 9 - Industry, innovation and 9.5 infrastructure 2.1 Drive a dynamic and inclusive 2 - Zero hunger economy in the Coopera琀椀ve’s territory 4 - Quality education 4.3 Strengthen the posi琀椀ve impact of our 4.4 French and interna琀椀onal produc琀椀on 4.5 facili琀椀es on local communi琀椀es Share our knowledge and 4 - Quality education 4.3 4.4 know-how, contribu琀椀ng to the 4.5 development of entrepreneurship and the sustainability of agricultural 4.7 professions 79
GOING DEEPER METHODOLOGY The scope of reporting used for these indicators is the VIVESCIA Group scope of consolidation. Companies under VIVESCIA’s operational control (> 50%) are included in the scope. Companies in which VIVESCIA holds a minority interest are not included in the scope of this CSR report. Similarly, entities such as property management companies and 昀椀nancial holding companies, where the evaluation of workforce and environmental indicators is not meaningful due to their type of business, are not included. The scope of reporting for the indicators below is in accordance with decree no. 2017-1265 dated 9 August 2017 issued for the application of order no. 2017-1180 dated 19 July 2017 regarding non-昀椀nancial reporting by certain large companies and certain Groups of companies. Environmental indicators are measured on our production sites. Of昀椀ces are excluded because they have a minimal environmental impact compared to production sites. The workforces of the following businesses are excluded: the Paris Bakery and Patisserie School (29 employees at 30 June 2023), as it has association status, and Aliane (116 employees at 30 June 2021), as it is a joint venture. Reporting period The data reported for the various indicators relates to the 12-month period from 1 July 2022 to 30 June 2023. Methodology for calculating the key performance indicator Energy energy recovery. On the other hand, waste that is land昀椀lled (with or without recovery of biofuel) or incinerated without All sites declare all the sources of energy used to power energy recovery is recorded as non-valorised. Our activities facilities and manufacturing equipment on site as well as generate very little non-organic waste. Their production vehicles and handling equipment. is often sporadic throughout the year. However, organic Examples of energy: heating oil, diesel, natural gas, electric- ity, etc. waste is inherent to our activity. VIVESCIA recycles 99% of Greenhouse gas emissions its products and organic waste, essentially through animal feed. Hazardous waste, which is not a major concern for our The calculation of scopes 1 and 2, for all years since 2014- activities, concern waste whose disposal requires speci昀椀c 2015, for the purposes of monitoring the targets of -20 % precautions to ensure the protection of people and the envi- per tonne (benchmark year 14-15) excludes the activities ronment. Speci昀椀c procedures are therefore put in place for their disposal. of VIVESCIA Services (tertiary) and ARD (research). Our carbon footprint analysis for scopes 1, 2 and 3* was carried Health and safety out according to the relevant international standards (GHG Protocol, organisational approach). The frequency rate for accidents employee accidents (short- term contracts and open-ended contracts) is calculated over The conclusions for scopes 1, 2 and 3 are calculated based the 昀椀nancial year. The formula is as follows: Number of em- on data from 2020-2021, the purpose of this exercise being ployees suffering lost-time accidents x 1,000,000/Number to prioritise sources of emissions as well as estimate emis- of salaried hours worked over the period. The severity rate sions for each area. for accidents employee accidents (short-term contracts and open-ended contracts) is calculated over the 昀椀nancial year. All the subsidiaries of VIVESCIA Group were included in this calculation. All upstream agricultural activities are tak- The formula is as follows: Number of days lost due to em- en into account. However, for downstream activities, only ployee accidents x 1,000/Number of salaried hours worked primary processing stages carried out by our businesses are over the period. addressed. Considering the diversity of our products, cal- Training culating all emissions up to the end user would require too The proportion of payroll expenses devoted to training is many assumptions, making the results inexplicable. calculated based on all training expenses, including educa- VIVESCIA Services’ support functions were also excluded tional teaching costs, logistics costs and the salaries paid because they were judged to be not signi昀椀cant in compari- to employees during training. Rate = total training costs son to VIVESCIA Group’s total emissions. divided by total payroll costs. The percentage of employees Waste having followed at least one training course over the past 昀椀- Non-organic waste recorded include metal, paper, card- nancial year is calculated based on the number of employees board, plastic, glass, wood/pallets and non-hazardous indus- (contracted on the 昀椀nal day of the 昀椀nancial year) having fol- trial waste. Waste was recorded by weight. Recycled and lowed at least one training course during the previous year non-recycled waste are differentiated. We consider waste out of the total number of employees as at 30 June 2023. to be “valorised” when there is recycling or incineration with *Scope 1 represents the GHG emissions produced directly by the company, scope 2 refers to indirect emissions related to energy not directly generated on the company’s premises, and 昀椀nally, scope 3 is related to indirect emissions that are not under the company’s control. 80
GOING DEEPER Employees This data includes all employees (on short-term contracts and open-ended contracts) contracted on the 昀椀nal day of the 昀椀nancial year, i.e. on 30 June 2023. Breakdown of employees Breakdown by business % % % 2.1 16.6 81.3 work for work for work for support functions agricultural businesses processing businesses ➜ 2.2% at 31/12/21 ➜ 16.6% at 31/12/21 ➜ 81.2% at 31/12/21 Breakdown by gender % % 64.5 35.5 of men of women ➜ 64.5% at 31/12/21 ➜ 35.5% at 31/12/21 Breakdown by age Breakdown by region Under 25 years old 6.2 % Asia: 11.6 % Over 55 years old: 17.6 % vs 5.8% at 31/12/2021 Oceania: 1% Champagne-Ardenne: vs 15.3% at 31/12/2021 America: 3.2 % 26.1 % 25-34 years old 22% 23.3% at 31/12/2021 vs 23% at 31/12/2021 Grand Est region (including Champagne- Ardenne): 26.4 % Europe (including 45-54 years old: 26.5 % France) : 84.2 % France (including vs 27.7% at 31/12/2021 35-44 years old 27.7 % the Grand Est vs 28.2% at 31/12/2021 region): 61.2 % 81
GOING DEEPER VIVESCIA Group Scope COOPÉRATIVE VIVESCIA MALTEUROP GROUPE Siège DÉLIFRANCE Iberica VIVESCIA AGRICULTURE SERVICES MALTEUROP Canada DÉLIFRANCE Italia VIVESCIA INNOVATION AGRILIANCE MALTEUROP USA DÉLIFRANCE Norden AB VIVESCIA TRANSPORT MALTEUROP New Zealand DÉLIFRANCE Osterreich COMPAS VIGNES MALTEUROP Australia DÉLIFRANCE Polska MINJARD MALTEUROP Chine DÉLIFRANCE Roccia SEPAC-COMPAGRI INTERMALTA DÉLIFRANCE Suisse VAUTHIER SEPAC DIAMALTERIA DÉLIFRANCE UK SEVEAL SA MALTEUROP France DÉLIFRANCE Thaïlande VIVESCIA SERVICES MALTEUROP Allemagne DÉLITRADE ARD MALTEUROP Pologne DÉLIFRANCE Belgium NEALIA France MALTEUROP Ukraine * DÉLIFRANCE China FOOD KALIZEA France BELGORSOLOD DÉLIFRANCE China LA BOULANGERIE KALIZEA Pologne DÉLIFRANCE France DÉLIFRANCE Hungaria KALIZEA Roumanie – JV DÉLIFRANCE Deutschland DÉLIFRANCE HEINZ BAKERY GMP DÉLIFRANCE Hellas DÉLIFRANCE NUOVA COGEA GRANDS MOULINS STORIONE DÉLIFRANCE Asia Wholesale DÉLIFRANCE Japan Given the geopolitical context, data from our Ukrainian malt-houses are only partially integrated – data for Chernihiv but not Kharkiv. 82
GOING DEEPER Regulatory issues Greenhouse gas emissions from transport • The implementation of strict quality speci昀椀cations to The transport part of scopes 1-2-3 is based on data from ensure that grain performs optimally during processing stages, in particular for maize at Kalizea. 2020-2021 representing 406 kTCO2e, most of which • Working on our product formulations to make the most comes from road transportation, then rivers and canals, and ef昀椀cient use of raw materials, in accordance with custom- 昀椀nally by rail transportation. er requirements, in particular at Nealia. Animal welfare • Délifrance’s warehouses have established a partnership with Banque Alimentaire (French food banks). When Our businesses are not directly exposed to the issue of products’ ship-by dates have passed but their use-by dates animal welfare. However, Délifrance purchases 100% cage- are still several weeks away, Délifrance distributes them to free eggs (Europe and UK). And 100% of Grands Moulins de charities. Through these actions, Délifrance demonstrates Paris’s baking mixes that contain eggs are made using free that it is acutely aware of the food waste issue. range eggs from chickens since July 2021; 83% of frozen products containing eggs are made with cage-free eggs Promo琀椀on of physical ac琀椀vity and sport since June 2023. Our business activities are not directly exposed to the issue The 昀椀ght against food waste of the promotion of physical activities and sport within the company. For VIVESCIA Group, the main action we take to combat food waste is to minimise waste during storage and pro- Collec琀椀ve bargaining agreements cessing. Here are some examples of the best practices our The HR directors of each group entity meet on a monthly Group has developed: basis to discuss their roadmaps and to harmonise HR pol- • Improving production ef昀椀ciency, which is a continuous icies wherever they can. This sharing of best practices is a process. virtuous circle that promotes such practices and improves • GMP recycles downgraded products internally (so long the operational ef昀椀ciency of HR. Moreover, many collective as this does not affect product quality) and manages the agreements have been put in place regarding remote work, quantities of gluten incorporated according to 昀氀our pro- quality of life at work and the provisional management of tein content. jobs and skills with union representatives over the last few • The selection of barley varieties with optimum germina- months. tion rates by Malteurop. STAKEHOLDERS MANY VENUES AND OPPORTUNITIES FOR DISCUSSION THROUGHOUT THE YEAR TO IMPROVE THINGS TOGETHER The nature and diversity of our businesses means we maintain constant dialogue with various internal and external stakeholders, and we have stepped up this dialogue since 2018. The highlights include: The Châlons-en-Champagne agricultural trade fair, which is an opportunity to meet farmers, players from the grain industry, and the general public, as well as regional and national elected officials; the grain route and barley route, with our customers; our AGM and local general meetings. • Coopera琀椀ve farmers • Food processing customers • Schools and universi琀椀es • Employees • Consumers • Start-ups • Governance bodies • Professional farming organisa琀椀ons • Media • Employee representa琀椀ves • Banks and 昀椀nancial ins琀椀tu琀椀ons • VIVESCIA Industries shareholders • Local and na琀椀onal associa琀椀ons • VIVESCIA Industries individual • Public authori琀椀es and local and shareholders na琀椀onal elected o昀케cials 83
REPORT BY THE AUDITOR, A DESIGNATED THIRD-PARTY ORGANISATION, ON THE NON-FINANCIAL PERFORMANCE DECLARATION In our capacity as the statutory auditor of your group (hereinafter “the entity”) appointed as an independent third-party organisation (hereinafter “third party”), accredited by COFRAC and registered under number 3-18841, we conducted work with a view to producing a report based on historic information (observed or extrapolated) from the consolidated non-financial performance report prepared accord in accordance with the entity’s procedures (hereinafter “the reporting criteria”) for the year ending 30 June 2023 (hereinafter respectively “the information” and “the statement”), presented in the group’s annual report in application of the provisions of article L. 225-102-1, R. 225-105 and R 225-105-1 of the French commercial code. Conclusion Based on the procedures implemented, as described in the “nature and scope of the work” section, and the data that we have collected, we did not detect any significant anomaly that would call into question the fact that the declaration is compliant with applicable regulatory provisions and that the information, as a whole, is presented in an honest manner and in accordance with the guidelines. Remarks Without prejudice to the above conclusion, and in accordance with the provisions of article A. 225-3 of the French Commercial Code, we have the following remarks: As mentioned in the “methodology” chapter of the declaration, the scope 3 carbon footprint analysis, including upstream and downstream transport, was carried out on data from 2020-2021. Moreover, the action plans aiming to reduce direct and indirect greenhouse gas emissions from transport are currently being drafted. 1. COFRAC accreditation. Inspection no.3-1884, available at www.cofrac.fr Read all the latest news about VIVESCIA Industries and find all the information you need on www.vivescia-industries.com www.vivescia.com Postal address: VIVESCIA Industries - 2, rue Clément Ader, 51100 Reims Email: [email protected] Registered of昀椀ce in Reims • 2, rue Clément Ader, 51100 Reims • +33 (0)3 26 78 62 00 • Graphic and editorial design: and VIVESCIA’s Communication department • Texts: Corine Delahaye, Olivier Frey, Élodie Kretz, and VIVESCIA’s Communication department • Photo credits: Ballade Studio, Bertrand Boissimon, Axel Cœuret, Guillaume Czerw, Jacques Dieppedalle, Claire Jachymiak, Clément Lemaire, Guillaume Ombreux, Benoît Pelletier, Léo-Paul Ridet, Stéphanie Tétu - La Company, Visu Communication, La Coopération Agricole, Malteurop, Grands Moulins de Paris, Francine, Campaillette, Délifrance, KALIZEA, VIVESCIA • Printed by: DejaLink on 100% recycled Nautilus Classic FSC paper. Published by VIVESCIA’s communication department. • November 2023 • ISSN 2497-2940 84
VIVESCIA, its farmers, its partners, its food processing customers, all stakeholders in the plant and grain industries, are working to tackle the challenge of climate change and the agri-food transition. SCAN THE QR CODE TO FIND OUT MORE ABOUT TRANSITIONS
