DELIVERING WORLD-CLASS FOOD SAFETY AND QUALITY
SUPPLIER MANAGEMENT | 8
SOURCING | 12
PRODUCTION | 16
STORAGE & DISTRIBUTION | 20
– THROUGHOUT THE VALUE CHAIN
CUSTOMER SATISFACTION SURVEYS Conducted every two years, these give valuable insights into our customers’ loyalty to Palsgaard and their attitudes towards our complaint handling, communication and much more ...
Zero
Food safety incidents across production facilities in 2017
4
87%
Customer satisfaction with product declarations and special certifications
Zero Product recalls worldwide for all divisions in 2017
OUR TRACK RECORD Palsgaard delivers products to almost 125 countries and this demands a special obligation to ensure that products and production processes comply with all legal requirement at all times. Food safety and quality is paramount across our production sites. Equally, our stringent raw materials control programme, coupled with a robust supplier management process, underpins our track record of zero food safety incidents and zero product recalls. Our production facilities are maintained according to world-class standards and our employees have a solid culture of awareness around food safety and critical control points. In 2017, a global Quality, Environment, Health and Safety (QEHS) team was introduced to implement procedures and provide support across all sites and across the entire food safety and quality process. Happy customers are close to the hearts of everyone at Palsgaard. Results from biennial customer satisfaction surveys indicate that customer satisfaction is consistently high. Through the planned activities of the global QEHS team and our ongoing commitment to customers, we will continue to produce safe and innovative ingredients. 5
6
MAKING A DIFFERENCE Palsgaard supports UN Sustainable Development Goal 3 – targeted at ensuring healthy lives and promoting well-being. Our food quality and safety systems protect consumer health and we believe emulsifiers help fight lifestyle diseases by removing or reducing undesirable ingredients such as transfatty acids and saturated fats.
We’ve invested in food safety and sustainable sourcing for many years, pioneering the development of these areas and making the results available to our customers to help them stay ahead of market trends. And we have certainly seen it pay off for them.” Jakob Thøisen, CEO, Palsgaard A/S
7
SUPPLIER MANAGEMENT ROBUST SYSTEMS Management of our supply chain is integral to our quality assurance system. To ensure that our final products are safe for human consumption, we ensure that our raw materials meet quality and reliability standards. Our suppliers undergo a thorough approval process through our Responsible Sourcing Programme, which also encompasses a food fraud vulnerability assessment and regular performance reviews. Suppliers must sign our Supplier Code of Conduct and provide product specifications, analysis certificates and reference samples with all of their deliveries. At Palsgaard, we aim to work exclusively with ethical and responsible suppliers that recognise and support the UN Global Compact’s principles. These 10 principles address human rights, employee welfare, environment and anti-corruption. We use the principles in our Responsible Sourcing Programme to assess key suppliers, along with a number of internal policies. 8
WHAT IS ‘FOOD FRAUD’ ? – refers to intentional tampering of food that is committed for economic gain. Eg. when a liquid is diluted with water without appropriate labelling by the producer.
PALSGAARD’S ANTI-CORRUPTION GUIDELINES – have been published in a booklet and can be accessed online at www.palsgaard.com
ISO 22000–FSSC FOOD SAFETY SYSTEM Our production sites have been certified to meet the requirements of ISO 22000-FSSC, a globally recognised food safety management system.
10
Our policies guide sourcing and production activities, helping us to maintain our clean track record in a socially responsible and sustainable way. The relevant policies include the: • • • • •
Corporate Code of Conduct Product and Quality Policy Procurement Policy Supplier Code of Conduct Anti-Corruption Guidelines
And in Malaysia, a Sub-Contractor Code of Conduct has also been implemented. These policies closely reflect our commitment to the UN Global Compact principles and comply with EU and local regulations in the countries in which we operate. The Corporate Code of Conduct and Anti-Corruption Guidelines outline our zero-tolerance policy towards corruption and cartels and we communicate these principles to relevant employees, interest groups, agents and distributors. As they are most likely to come face-to-face with corruption and cartel activities, sales and procurement employees receive additional guidance in anti-corruption behavior.
11
SOURCING A RESPONSIBLE START The raw material approval process is overseen by our regulatory team, product managers and quality team to ensure that materials are fit for purpose. We strive to source high-quality raw materials and avoid GMO raw materials, enabling us to manufacture some of the highest quality, sustainably sourced and produced products. Our long-standing value of responsibility guides this approach and requires that we consider the social and environmental impacts of our operations. Given that our raw materials are grown in countries all over the world, we encounter a diverse mix of local rules and regulations when sourcing materials. Our Responsible Sourcing Programme helps us address challenges when prioritising sustainability and fair labour conditions in culturally sensitive circumstances. “We put considerable effort into risk analysis and the Responsible Sourcing Programme to ensure that our suppliers act responsibly. And when it’s possible to source raw materials from a sustainably certified supply chain, audited by a third party, it gives even more confidence in producing a truly sustainable product.” Lisa Mortensen, Senior CSR specialist, Palsgaard A/S
12
WHAT IS THE ‘RESPONSIBLE SOURCING PROGRAMME’ ? – ensures social and environmental responsibility when sourcing raw materials from suppliers.
13
WHAT IS ‘RSPO’ ? – a non-profit organisation that has developed a set of criteria, which companies must comply with, to produce RSPO-certified sustainable palm oil.
RSPO-1106336
We insist on sustainable palm oil as it is the main ingredient in many of our products. In 2008, we joined the RSPO (Roundtable on Sustainable Palm Oil) and in 2016, we became the first in our industry to offer a full range of RSPO SG-certified emulsifiers. It is satisfying to observe the considerable growth in the preference for these products. We are also members of the Confederation of Danish Industry’s Business Initiative for Sustainable Palm Oil and the Danish Task Force on sustainable palm oil.
15
WHAT IS THE ‘FOOD SAFETY MANAGEMENT SYSTEM’ ? – a certified system which includes our supplier approval process and food fraud vulnerability assessment, our HACCP based risk assessments of our processes, our Food Defence Program and our Environmental Monitoring Program.
16
PRODUCTION MEASURING UP All our production plants are certified to meet ISO 22000 requirements, a world-class Food Safety Management System. Furthermore, our sites in Denmark, Brazil, Malaysia, Mexico and the Netherlands fulfil additional requirements of ISO 22001 and FSSC and are therefore certified according to ISO 22000 FSSC and are recognised by the Global Food Safety Initiative (GFSI) and are in alignment with other high level certifications such as BRC and IFS. We manage food safety via Hazard Analysis and Critical Control Points (HACCP), according to Codex Alimentarius and in compliance with the European Regulation on hygiene of foodstuffs (852/2004). The combination of our Procurement, Product and Quality policies make sure that raw materials and products fully conform to food safety and quality criteria and our Food Defence Programme and Food Fraud Programme adds an additional layer of assurance. Palsgaard has been a member of Sedex (the Supplier Ethical Data Exchange) since 2008. As a member, we answer detailed questionnaires about all our production sites, the results of which can be accessed by customers that are also Sedex members. Additionally, we have conducted four-pillar SMETA Sedex audits at our facilities in Denmark, the Netherlands and Malaysia. 17
QUALITY CONTROL – FROM START TO FINISH Delivering top-quality products that perform as expected is paramount to Palsgaard and to our customers – and we will do our utmost to ensure that our products deliver, every time! Before production starts, all raw materials delivered to Palsgaard undergo extensive quality control involving a range of highly specialised and detailed analyses. This ensures that each delivery meets the specifications for identity, physical form, chemical purity and functionality. Our finished products also undergo an intensive process before being released for distribution. They are analysed in a positive release system, which checks compliance of functional performance parameters and chemical specifications defined for the product. Within bakery and confectionery we even take it a step further to ensure the reliable performance of our products: Every batch of PGPR and AMP is tested for its viscosity-reducing power in real chocolate, just as every batch of Emulpals® undergoes ABC-testing in real sponge cakes.
18
WHAT IS ‘ABC-TESTING’ ? – a practical aeration and baking control test performed under very standardized conditions. This maximises the validity and reproducibility of our tests by standardizing and excluding effects of disturbing factors. 19
STORAGE & DISTRIBUTION TRANSPARENT PROCESSES Each of our production sites have local food safety teams, who are responsible for risk assessment of all processes. We carefully manage cleaning, sanitation, foreign body control and allergen handling, along with strictly controlling access to factories, stores and related equipment. Storage facilities are approved according to regulations and we closely monitor the quality of packaging and sealing of products. We deploy best practices in pest control and Good Manufacturing Practices (GMP) audits and glass audits are conducted regularly. Our transparent and stringent food traceability process is tested regularly. The process offers 100 percent built-in traceability in every production batch, allowing for specific delivery recalls if ever necessary. Our clean track record of zero food safety incidents and zero product recalls is a testament to the solid culture of awareness and our employee’s understanding of our critical control points. The raw materials control programme and our good working relationships with suppliers also ensure that non-conforming products are captured before entering production. 20
100% TRACEABILITY – our robust and regularly tested food safety management system offers an undisrupted flow of documentation from supplier to customer.
“ We aim to maintain our clean track record when it comes to food quality and safety. Future projects involve implementing a complete review of all QEHS policies, establishing a global food safety team and developing a Palsgaard standard for Quality and Food Safety.” Karin Elsebeth Hansen, Global QEHS, Palsgaard A/S
21
An overview of Palsgaard’s food traceability process 22
Customer alert
Data request • Incident description • Item no. and batch no. or • Customer order no. and item name
Food safety team • Work order • Batch trace - Raw ingredient - Supplier - Purchase order - Intermediaries - Packaging - Rework • Affected batches
Supplier(s) dialogue/actions
Customer(s) dialogue/actions 23
The paper used for this brochure complies with FSC ÂŽ (Forest Stewardship Council ÂŽ) standards for ethical and responsible forestry and wood products.
Palsgaard A/S DK-7130 Juelsminde Denmark Tel: +45 76 82 76 82 direct@palsgaard.dk www.palsgaard.com
This printed material is carbon compensated according to ClimateCalc. Offsets were purchased from: South Pole Carbon. Cert. no CC-000033/DK.
This printed matter complies with the environmental requirements of the Nordic Swan Ecolabel. Licence number: 5041 0751.