Macphie Ltd: Impact report 2022-2023

2023

2022

impact report

Head Chef Gordon

Contents A message from our Chairman

4

Introduction

6

About Macphie

8

A force for good

12

Governance

16

Customers

20

Communities

24

Workers

30

Environment

38

2023/24 focus areas

42

Building a better future

44

A message

A company that cares 4

Ed Widdowson and Alastair Macphie

from our Chairman “

In a year which has seen monumental change on a global scale, it’s often hard to imagine how what we do on a farming estate in South Aberdeenshire can have an impact on the world around us.

However, upon writing this report and reflecting on our progress, I take great pride in the relentless efforts of our team.

Like many businesses, we have felt the challenges brought upon us by covid-19, Brexit and the war in Ukraine but we have weathered the storm well.

As a family-owned business, we have a clear sense of purpose, mission and values and over the years we have built a reputation for doing the right thing. Not only are we proud of this legacy but I truly believe that it is these solid foundations which get us through.

At our core, Macphie is focused on achieving sustainable and profitable growth that provides jobs and creates wealth in the local area, rather than maximising short-term returns for shareholders.

It brings me great delight that this year we were able to recommence operations in our North Lanarkshire factory after a temporary shutdown due to the impact covid-19 had on sales. The grand reopening saw us deliver a £4million refurbishment programme and create 40 new jobs in a part of the world that has experienced a number of permanent factory closures.

This year also saw my nephew Ed Widdowson join Macphie’s board of directors. Ed first began working for the business in 2017 and in April he was promoted to take a seat on the executive board. Ed brings fresh enthusiasm to our leadership team and I’m delighted to see the next generation of our family supporting the growth of this business.

Together we have made some brave decisions and in this last year we have introduced a number of new initiatives to benefit our people, our communities and our environment which we have outlined in this annual report.

Alastair Macphie, Chairman April 2023

5

Introduction 6

anniversary at

Glenbervie

Since 1928, Macphie Limited has been a key ingredient to the food industry. While we have grown from a small distributor for bakery ingredients based in central Scotland to an internationally renowned ingredients manufacturer, what we stand for remains at our core.

This year, we celebrate our 50th year in Glenbervie, Aberdeenshire, having moved to the purposebuilt headquarters in 1973. As we prepare for the next 50 years, our passion for the people and places around us lays a strong foundation for ambitious growth plans.

In 2015, we first achieved B Corp certification, providing a recognised stamp of approval for the work we do to make a positive impact on the world.

Our last recertification was achieved in 2021 with a score of 93.7, up 15% from our initial scoring in 2015.

This impact report outlines our progress in the last 12 months, offering accountability and transparency of our commitments across B Corp’s five key impact areas; governance, customers, community, workers and environment.

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About Macphie 8

What we do We are a family-owned ingredient manufacturer, making a wide range of products from cake mixes to savoury sauces and everything in between.

As a partner to some of the world’s leading food brands, we’re dedicated to turning ideas and creativity into practical solutions.

No matter your challenge, we rise to it.

It is the ‘we’ that we care so deeply about. So many people have played significant roles in our past and our present day, we would not exist were it not for them.

Colleagues, friends, neighbours. Our families.

And our commitment to care includes our surrounding environment.

We’re on a continuous journey of achieving sustainability, wherever we can.

That journey of responsible ownership is one we will always honour as we grow and evolve and continue to offer innovation that breaks down barriers.

Our legacy.

When it comes down to it, we’re a food company.

Creating, crafting, producing, supplying (and consuming!) it.

We think about it. We breathe it. And we live it.

Our passion. Our motivator. Our obsession.

simply clever food 9

Tom in the bakery

Our purpose To ignite a passion for food in everyone we meet

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Our values

Together as family

Trusted to deliver

It is not simply ‘a’ family business, it is ‘our’ family business.

We all have ownership and we must understand our role in achieving the bigger picture.

Attack each day with energy and passion because teamwork makes the dream work.

We’re relied on by one another and customers, to do what we say, when we say we’re going to do it. Remember, being trusted and dependable never goes out of fashion.

Creativity stands out

Quality shines through

Built-in sustainability

Since our origins we’ve stood out in the industry because of our innovation, imagination and invention. It’s what makes us different, it’s why customers come to us. The possibilities are only defined by us so challenge the norm and break down barriers.

The quality of our products, our processes, our support, everything we do should be underpinned by this. Let it show at every opportunity, go that extra mile and add a little bit more value.

Our approach, our processes, and our thinking have always been based on the principles of sustainability. We want to make a positive impact on both our local and wider environment, both now and in the future.

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Talon and Dylan from our warehouse

A force for good 12

Our ways of working have always been based on the principles of sustainability.

We want to make a positive impact on both our local and wider environment, building practices of doing the right thing to protect the people and places around us.

Proving we’re not just talking the talk when it comes to sustainability, we are B Corp accredited. This means we’ve proactively joined a community of like-minded businesses using their force for good.

Since 2015 we’ve aligned our ambitions to hit social and environmental goals, as well as financial targets, committed to continuous improvement across five key pillars:

Governance

Customers

Communities

Workers

Environment

There are currently over 6,000 certified B Corporations in over 80 countries and 150 industries. They include:

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Overall B impact score We last recertified in 2021, achieving a score of 93.7 and since then, we’ve been working hard to make further progress.

93.7 80

overall Macphie B impact score qualifies for B Corp certification median score for ordinary businesses

50.9 14

2022/23 progress at a glance Here is a snapshot of what we have achieved in the last 12 months.

We go into more detail about each impact area throughout this report.

What we did

What we said we’d do

B Corp impact area

Governance

Customers

Communities

Workers

Environment

2021 score: 16.9

2021 score: 3.7

2021 score: 17.3

2021 score: 27.7

2021 score: 28

Maintain the company’s overall mission, ethics accountability and transparency

Appointed Chairman Alastair Macphie’s nephew – Ed Widdowson – to the board of directors, ensuring continuation of the family’s constitution Appointed two new non-executive directors to advise, mentor and challenge the executive team

Help customers navigate through the after effects of covid-19 and its impact on the industry

Provide a toolbox of recipe inspiration to help customers make best use of the products they buy from us Our savoury sauces achieved endorsement from the Craft Guild of Chefs

Continue to give back to the communities in which we operate Return to in-person support for local school partners post pandemic

Donated over £31,000 and 14 tonnes of food products to local charities and community groups

Support employees post pandemic Create new employment opportunities for the growing refugee community in Scotland

Introduced a winter payment scheme which provided workers with an additional £750 over winter to help with Hosted seven secondary school the rising cost of living pupils as part of a foundation Partnered with the Scottish apprenticeship programme Refugee Council which resulted in the full-time employment Funded a scholarship and of two Syrian refugees three-month work placement for a local university food science student

Move towards carbon neutrality ahead of the Scottish Government’s target of 2045

Invested £75,000 to install a network of sub-metres across our Glenbervie site to track energy use more effectively Launched site improvement plans aiming to reduce our carbon footprint Engaged the workforce in our aims to encourage widespread involvement

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Andy Stapley, Alastair Macphie and Ed Widdowson

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Governance

In 1928, Alastair Macphie’s great uncle – Alistair – started a business selling bakery ingredients.

Since then, the Macphie family has evolved the company, and its offering, but keeping its strong values and community connections at its core.

MACPHIE FAMILY COUNCIL

95 years later, Alastair Macphie occupies the role of Non-Executive Chairman, having taken over from his father in 1995.

Maintaining guardianship of the company and how it operates, is the Macphie Family Council which exists to preserve the family’s legacy and to drive significant contributions to the communities in which it operates.

Home Farm

Mission lock A fundamental part of becoming a B Corp is legally committing to considering the impact of company decisions on all stakeholders.

This is referred to as “the mission lock” and in simple terms, means you’re giving a figurative seat at the table to your environmental and social stakeholders.

The B Corp legal framework allows companies to protect their mission and makes sure the business sustains stakeholder governance when times are tough or leadership changes.

This way of working has always been our preference and we were delighted to formalise this in 2015 when we officially became a B Corp.

Employee Trust Twelve percent of our company is held by an Employee Trust which is made up of both current and past employees and members of the Macphie family.

The trust oversees how the dividend generated by their shareholding is spent to the maximum benefit of employees.

We’ll talk more on their recent activities on pages 25, 31 and 33.

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Sticking to the family recipe In 2022, our Chairman Alastair Macphie’s nephew – Ed Widdowson – was promoted to the role of Director which saw him joining the executive board.

Prior to joining Macphie in 2017, Ed spent eight years working in sales and marketing for Procter & Gamble brands including Gillette, Pampers and Oral-B before becoming Head of UK Sales for Duracell.

In his new position, Ed oversees the development of our Aberdeenshire manufacturing facility in line with commercial ambitions and our growing sustainability agenda.

Speaking of the appointment, Alastair Macphie said: “Ed brings fresh enthusiasm to our leadership team and I’m delighted to see the next generation of our family supporting the growth of this business.

“He has been instrumental in driving our business forward over the last two years against an assortment of challenges.

“Ed has also been a key player in maintaining our status as a B Corporation across all our sites and he is committed to driving sustainable, profitable growth that provides jobs and wealth in the local area.

“With his commercial background, drive for operational excellence, and passion for the local community, Ed brings a strong, diverse skillset to our board under the direction of our CEO Andy Stapley.”

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Non-executive board In the last 12 months, we have appointed two new non-executive directors who provide an independent view of the running of our business, governance and boardroom best practice.

Norman Soutar and Jane Stewart joined the team, bringing with them a wealth of leadership and industry expertise.

With more than 29 years’ experience in the food sector, Norman’s latest venture saw him managing William Jackson Food Group as Chief Executive where he more than tripled the company’s revenue and oversaw a number of business disposals and acquisitions.

Norman said: “To be part of the evolution and growth of a food industry leader like Macphie is something that I am very much looking forward to.

“During my time at William Jackson Food Group, I worked with the Managing Directors and their leadership teams to help them create value over the long term, going that extra step beyond group strategy support.

“I hope that I can bring the knowledge and skills that I have gained throughout my 29 years in the industry to help Macphie on the next phase of its expansion plan.”

“Macphie continues to grow from strength to strength. Being a great fan of B Corp, I am delighted to be working with a firm that is so passionate about sustainability and environmental performance, having been one of the first businesses in Scotland to achieve this status in 2015.

“With many more significant business developments in the pipeline, it’s great to be on this exciting journey with them.”

Jane Stewart has over 25 years’ experience in industry, private equity investment and corporate finance and brings extensive experience of helping innovative businesses to grow.

Jane holds a number of non-executive positions in high-growth companies, including Edinburgh-based waste tech firm, Topolytics, and Offshore Renewable Energy Catapult. She has recently been recognised by Innovate UK as one of the UK’s leading Women in Innovation.

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Customers

It’s our job to make life easier for chefs and bakers around the world. We throw everything we have at making sure we continue to deliver the best possible solutions for our customers.

We invest heavily in market research to predict our customers needs before they’ve had a chance to. And from adapting our packaging solutions to introducing plant-based products, we’re never standing still when it comes to keeping customers happy.

Maintaining high standards In 2022, we maintained the top rating for food safety and quality from retail industry association the Brand Reputation Compliance Global Standards (BRCGS).

Following rigorous on-site audits at both our manufacturing facilities, we were awarded AA status – the highest possible scoring from the renowned safety and quality certification programme of which less than 40% of all BRCGS accredited businesses achieve.

The BRCGS have set the benchmark for over 20 years and have been adopted by over 20,000 sites in 130 countries.

Successful certification guarantees a manufacturer is meeting legal obligations as well as strict quality, safety, and operational criteria to protect the end user.

Our Technical Director Mark Duncan said:

shines through at Macphie and this top score is testament to our programme of continuous improvement. “ Quality “We have maintained the highest BRCGS grade annually since its conception in the 1990s and the auditor commented that it was clear to see why. They were impressed with our robust quality management system as well as the can-do attitude of our team.

“We are trusted to deliver and it’s our commitment to quality that has helped build long-lasting relationships with so many of our customers.”

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22

Craft Guild of Chefs endorsement It’s safe to say that we think our sauces are incredible but we might be a little biased.

So to make sure our products are still hitting the mark for our customers, we sent them off to The Craft Guild of Chefs (CGOC) to be rigorously tested by a panel of expert chefs.

Established in 1885 under its former name of the Cookery and Food Association, the CGOC is the leading chefs’ association in the UK with over 1,200 members worldwide.

Ten of our savoury sauces and our Plant-based Cream Alternative are now officially endorsed by the CGOC, giving our customers continued confidence that they meet the highest standards.

Andrew Green, Chief Executive of the Craft Guild of Chefs said:

seeing the results from our chefs’ product tastings, it is clear that Macphie is a force to be reckoned with. “ After “The overriding feedback for each of the 11 products was that they were consistent, high quality, easy to use and multi-purpose,

and this was the case for its plant-based sauces too. Its products are more than worthy of the Craft Guild of Chefs’ stamp of approval.

“The texture and flavour of Macphie’s plant-based products are also exceptional and are a great option for restaurants, bakeries and kitchens as this means that one sauce would cover almost all allergens and dietary requirements.”

Make more with Macphie The last few years have been tough for the foodservice and bakery industries. We understand that many of our customers are having to tighten their belt and are making sacrifices to keep their doors open. Our products are well known for their versatility and in 2022 we realised their potential power in helping customers through an unpredictable trading environment.

We launched our “Make more with Macphie” campaign which includes a series of short videos and a portfolio of recipe inspiration to showcase the many ways you can use Macphie products to reduce waste and even cut back on the number of fresh ingredients required back of house.

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George retired this year after 39 years of service

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Communities

As a family-owned business, embedded within our local communities, we have built a reputation for “doing the right thing”.

Our motivation does not always come from the bottom line. The idea of creating a legacy and the notion of trust features heavily in our activities.

We want to be a good neighbour to the communities in which we operate and do our best to support local causes, assist the future workforce and stay in touch with our retired employees.

Connecting communities The Macphie family constitution states that 1% of company profit must be donated to local charities and community projects.

In 2022/23, we donated over £31,000 which has been distributed between over 100 causes.

Our most significant contribution was to the development of the Queen’s Jubilee Coastal Path which will ultimately provide a walking route which connects the coastline of Kincardineshire to Banffshire. Realising the impact this route can have on both community wellbeing and the local tourism industry, we committed to paying £30,000 across three years (£10,000 paid out in 2022/23) to fund the project management of the 30-mile stretch between St. Cyrus and Cove, Aberdeen.

Our donations have also supported walking football clubs, funded village Christmas lights and paid for a new lawn mower to maintain community-run park spaces.

Retired workforce Our retired workforce played a big role in driving growth at Macphie and they remain valued members of the team.

In the last year, over £21,000 was gifted, through the Employee Trust, to our retired employees as an annual winter payment.

They receive a quarterly newsletter which is delivered to their doors with updates from their old colleagues and the latest company news, and our Employee Trust visit or call all our pensioners to check in throughout the year.

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Supporting

In 2020, following the outbreak of covid-19, we began supporting Fareshare – the UK’s charitable food redistribution network.

Its network is made up of 18 independent organisations and together, they redistribute surplus food products to reduce food waste and alleviate food poverty.

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Macphie / FareShare partnership impact April 2022 - March 2023

Total impact

CO2e

14

Tonnes of food

529

Charities helped

33,320 Equivalent meals*

Who our food has helped Our food has been received by 529 charities and community groups including:

22.4

Tonnes of CO2e prevented from being wasted

£

40

Working with people experiencing homelessness

53

Children (under 18)

65

Families with children

167

People on low or no income

*The equivalent meals calculation is based on WRAP's guidance around reporting the amounts of surplus food redistributed – find more information here: wrap.org.uk/resources/guide/reporting-amounts-food-surplus-redistributed-weight-and-mealequivalents-wrap

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Lily-Anna from Portlethen Academy went on to win Aberdeenshire’s Foundation Apprentice of the Year 2023

Developing the young workforce Since 2017, we have been partnered with two local secondary schools – Mackie Academy and Mearns Academy – which are both within a 10-mile radius of our main manufacturing site.

With each school, our aim is to inspire careers in the food industry and help prepare young people for the world of work.

2022 saw us return to schools in person following the pandemic.

Support varied from one of our chefs judging a cooking competition and providing one-to-one mentoring with the winner to hosting seven school pupils over seven weeks as they undertook a foundation apprenticeship.

The seven-week programme was part of a food science course and saw the pupils spend time with different areas of our business to ultimately develop their own dessert topping sauce.

Lewis Mowatt, age 16, a pupil at Mackie Academy said:

placement at Macphie provided me with a very “ The insightful look into the food manufacturing industry

through first-hand experience.

“It’s been great to learn all the ins-and-outs of such a modern company and I’ve loved having the opportunity to concoct my very own sauce!

“This experience has really benefited me as I will now be able to demonstrate my knowledge of the industry to a future employer, presenting myself as a valuable member of a working team.”

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Following a health and safety induction, an introduction to the product design team and lessons in marketing, each apprentice was then tasked with carrying out their own research and creating a new dessert sauce.

The pupils spent a full day in the development kitchen cooking up their very own recipes, trialling different ingredients and taking part in group product tastings.

The students were also then taken through quality testing, label creation and finally, they presented their products to our senior team and product panel, who provided the students with important feedback on their concepts.

Robin Christie, Head Teacher at Mearns Academy said:

several years, staff from Macphie have visited the school regularly to deliver workshops on job skills and are now providing “ For our students with invaluable on-site placements.

“This experiential learning exemplifies all that is good about foundation apprenticeships – the pupils have absolutely loved it and if keen to pursue a career in the industry post-school, should have a massive advantage over others looking to follow a similar path.”

Getting involved All our employees have the opportunity to take the equivalent of two days as paid leave to volunteer for local projects or causes which are close to their heart.

Last year, employees from across the business collectively volunteered for over 100 hours for causes including The First Responders, The Coastguard and local park committees.

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Louise and Gemma in the factory

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Workers

We understand the power of people, from the moment they set out on their career paths to long after they hang up their hairnets for the last time.

We currently employ a team of over 250 people across our business.

We’re committed to inclusive ways of working, doing what we can to contribute to our people’s financial, physical, professional and social well-being.

Employee Trust Our Employee Trust owns a 12% share of our business. Last year, the Trust contributed to a variety of initiatives including a leisure subsidy scheme.

This offers each employee up to £100 to use towards hobbies, or activities they enjoy doing outside work or to try something new.

So far, over £60,000 has been paid out under this scheme since 2018 (£15,200 in the last 12 months) and this year, we are expanding the criteria to include a broader range of ways to claim.

Recognising that covid-19 has changed the way people spend their spare time like working out at home or taking up new hobbies, we have made it easier to claim on equipment, rather than solely tickets or gym / sport club memberships.

Macphie’s Employee Trust also supports its employee and pensioner population in times of hardship, through emergency loans and help towards funeral payments.

Our retired workforce is also supported by the Employee Trust.

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was always certain that joining the summer placement “ Iprogramme would provide me with great experience and important skills, but I never thought it would result in me landing a full-time position within the company.

“The team at Macphie has been really supportive from the get go and have given me all the tools to grow.”

Jamie McDonald, Product Designer at Macphie

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Funding futures As well as taking care of current employees, our Employee Trust helps nurture and attract future talent. Since 2019, the trust has funded a scholarship programme with Abertay University in Dundee. The scheme offers a financial contribution and summer work placement for one food science student every year.

This year saw food and consumer science student Jamie McDonald join the team for three months over the summer of 2022, before he was offered a full-time role as Product Designer. He’s worked on a number of key strategic projects and has gone on to inspire future students by hosting an on-site event in collaboration with the Institute of Food Science & Technology (IFST).

The event saw food science students from universities in Aberdeen, Dundee and Glasgow gather in Glenbervie to hear Jamie’s story as well as others from around our business, and take a tour round our development facilities.

Broadening its reach wider than food science, Macphie’s Employee Trust also funds a student bursary scheme, designed to ease the financial burden often associated with going to university or college.

The children or grandchildren of current and retired employees can apply for a small grant to help towards the cost of their studies.

This year the trust gave out a total of £5,500, supporting students studying a broad range of subjects including medicine, hairdressing, economics and law.

Yasmin Ratcliffe is the daughter of one of our colleagues and she is in her third year studying medicine at Oxford University: Macphie student bursary helps my studies in many ways. For example, I had to buy a new laptop for revision and coursework “ The so last year I used some of the money Macphie gave me.

“I also use the money for other learning supplements. In February I was lucky enough to get a place on a surgery course with the Royal College of Surgeons London so I used some of the money from this bursary to attend.

“This year I plan to continue using the money to support my academic life here in Oxford. I am relying more on technology this year since I am running a project analysing the role of brain chemistry abnormalities in causing hallucinations in Parkinson's patients, alongside my other exams.

“I also have a dissertation to write on the genetics behind aggression, and the bursary will support me in my learning and any primary research I need for that this year.”

Yasmin Ratcliffe, medical student at Oxford University

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Keeping people safe…

Since its conception in the 1990s, we’ve maintained the highest BRC grade annually. This means that we not only meet the highest standards in food safety and hygiene but that we match this in our approach to the health and safety of our people.

…and warm

In response to rising energy costs in 2022, we launched a cost-of-living contribution scheme which saw us pay all our employees – bar senior managers – an additional £750 over winter.

Ewan, Warehouse Team Leader

The scheme was offered on top of a company-wide pay increase of 2.5% in 2022.

Welcoming refugees A new initiative for 2022 was the launch of our partnership with the Scottish Refugee Council (SRC) to create career opportunities for refugees resettling in Scotland. SRC supports candidates with employability training, which includes how to create a CV, interview skill sessions, mock interviews and explaining employment rights and benefits. SRC worked with us to adapt our recruitment process to make it more accessible to the refugee community and as a result, we have two new recruits in our Tannochside factory team.

Having joined our operational team, our new recruits have already progressed to continuous improvement and engineering roles where they are able to put their previous work experience and passion into practice.

We’re delighted with the pair’s contribution to our company and we are working on extending our work with SRC to include our Aberdeenshire factory.

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Anita Yu, Employability Support Officer at Scottish Refugee Council and facilitator of the partnership said:

Anita Yu and our CEO Andy Stapley

were delighted when the team at Macphie reached “ We out to us. It’s wonderful that our collaboration has already enabled two refugees in our programme to join the company.

“The people we work with have fled horrific situations around the world and come from countries where conflict and human rights abuses are rife.

“When refugees arrive in Scotland, new and challenging journeys begin. Not only do they have to contend with the disorientating process of settling into a new country, but their qualifications might not be recognised in the UK. They might not be aware of their employment rights, and there is also a language barrier.

“Many of the people we work with are highly skilled, experienced and qualified. Others have not had an opportunity to explore their potential due to circumstances in their home country. If given an opportunity to show what they can do, they can be an asset to any business.

“This is why it’s so important that we provide support to people in need of refugee protection as they start their new lives and that companies recognise the promise and potential that Scotland’s refugee communities bring, like Macphie has.”

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Our supply chain We extend our duty of care far beyond our factory walls. We are members of Sedex, the world’s largest platform for sharing responsible sourcing data on supply chains, used by more than 74,000 members in over 170 countries.

This is one of the ways we manage the wider impact our business has through the activities of our supply chain.

We use over 200 suppliers and require them all to confirm: • the steps they are taking to ensure slavery and human trafficking are not taking place within their business, or any part of their own supply chain • their acceptance of the Ethical Trading Initiative Base Code, which includes the payment of relevant living wages, preclusion of child labour and lack of forced labour or excessive hours • that they have - and supply us with - a copy of their ethical trading policy and environmental policy • whether they themselves are members of Sedex By monitoring compliance, we promote ethical practices through our own supply chain with the aim of driving positive change throughout the industry.

Macphie itself operates a robust recruitment policy to prevent the practice of modern slavery. We check eligibility to work in the UK for all employees to safeguard against human trafficking or individuals being forced to work against their will.

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Environment

This year we celebrate 50 years of calling Glenbervie our home. The green fields surrounding our headquarters have been a source of both comfort and inspiration over the last five decades and we do everything we can to minimise our impact on the environment.

The Macphie family has installed two wind turbines on site – under the name of Glenbervie Wind – contributing to our direct supply of renewable energy, and we were the first food manufacturer to produce ingredients using a 1.2MW on-site biomass facility.

Cutting carbon Building on our existing renewable and on-site self-generated supply, our environmental activity this year has been focused on preparing us for the next 50 years and beyond. From big changes to small, we have a clear ambition to move towards carbon neutrality ahead of the Scottish Government’s target of 2045 and we hope the plans and investments we’ve made this year will make a positive impact for generations to come.

In winter, we invested £75,000 to install a network of sub-metres across our Glenbervie plant, allowing us to track our energy use on a more granular level. While it’s still early days, this will allow us to drill down on making energy efficiencies on individual products and processes.

This year we secured funding from the Scottish Industrial Energy Transformation Fund (SIETF) which has allowed us to kick-start a programme of work which will reduce our carbon footprint.

The investment is being used to improve our ability to make use of renewable energy generated on site - firstly by allowing us to buy two new boilers which are hydrogen-ready. While we aren’t yet equipped to embrace hydrogen energy, the installation will ready us to convert when the market matures. The new process-steam boilers include heat recovery systems which will allow us to recycle the condensate through a heat exchanger to pre-heat the cold-water feed going into the boiler, reducing our reliance on fossil fuels by 25%.

At present, 70% of our energy in Glenbervie comes from on-site generated wind energy, restricted by current infrastructure.

The second phase of the programme will see us installing a new power supply allowing us to consolidate our grid access points and increase our use of wind energy generated on site by around 20%.

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Turning on the lights in Tannochside 2022 saw us recommence operations at our North Lanarkshire factory after we were forced to down tools temporarily due to the impact of covid-19 on foodservice sales.

Before firing up the factory again, we took the opportunity to refit the 25,000sq ft production space, making it fit for purpose and more environmentally friendly – investing around £4million. As part of the refurbishment, we installed low-energy lighting across the factory and insulation to avoid unnecessary energy use in both heating and cooling storage spaces.

We have now signed off on plans to install solar panels on site which will generate one third of the energy to power our Tannochside facility.

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Supporting a sustainable industry As a certified B Corp, we believe it’s important to fly the flag for high standards of environmental and social performance and inspire good practice across our industry. Last year, we sponsored the Sustainability Initiative of the Year category for the second year at the prestigious Baking Industry Awards – an annual celebration of success in the baking industry.

This category is open to bakery businesses of any size, including wholesale and retail operations, manufacturers as well as their suppliers. In sponsoring and judging this award, we celebrate a range of sustainable initiatives aimed at reducing waste, cutting carbon footprints, using green energy and driving efficiencies.

Working collaboratively with customers, we’re also helping to create sustainable solutions to suit their needs. By offering ultra-heat treated (UHT) sauces, glazes and dairy cream alternative, we’re helping customers to reduce their reliance on chilled options and therefore cutting their energy consumption. The longer product shelf life also helps towards reducing food waste.

We have helped move one customer from using plastic bottles for their sauces to film pouches to reduce their intake of single-use plastic.

A team effort This year, we launched the “energy taskforce”, engaging champions across the business to drive change in their areas.

Meeting on a quarterly basis, the team are responsible not only for developing ways in which we reduce our energy use on site but to feedback tips and advice to their teams on how they can implement these changes at home, too.

Following the first meeting, it was clear there was demand amongst staff for more electric car charging points on site.

We installed three back in 2018 but the number of employees driving electric vehicles has increased and we have introduced two to our own fleet. We now have plans to install a further four charging points in Glenbervie and four in Tannochside.

“As well as big-ticket projects, sustainable operations rely on our behaviour. The energy taskforce is made up of volunteers from around the business who want to help make a difference.

“After just one meeting, there was a notable increase in the number of people switching off lights and other electronic equipment when leaving a room and turning down radiators in infrequently used meeting rooms – small actions which all help the bigger picture.”

Ed Widdowson, Strategy & Sustainability Director

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Governance

Appoint Strategy, People and Sustainability Director to executive board to strengthen strategic focus on people and sustainability

2023/24 focus areas at a glance Here is a snapshot of the areas we plan to focus our attention over the next 12 months to continue our improvement journey.

Workers

Review our maternity, paternity and adoption leave packages Extend our partnership with the Scottish Refugee Council to create further employment opportunities for refugees resettling in Scotland Review our remuneration packages in light of cost-of-living pressures

Customers

Appoint dedicated resource to manage learning and development to attract, nurture and retain talent

Partner with Scottishbased manufacturers with the view of expanding our use of local suppliers

Environment

Proactively encourage customers to move customised products into more sustainable packaging options

Communities

Donate £50,000 to local charities and community groups Provide work experience opportunities for young people

Install two new boilers with heat recovery systems to reduce carbon output by 25% Install new power supply allowing us to consolidate grid access points and increase use of wind energy by 20% Install solar panels at our North Lanarkshire factory to generate 35% of our energy required to run the site Install further electric vehicle charging points at all factories Remove diesel van from company fleet and replace with electric vehicle

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Building

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a better future

“

As I celebrate 35 years working at Macphie this year, I’m proud of the positive impact we have made on the people and places which make this business so special.

Despite a backdrop of global economic uncertainty, we continue to innovate and drive improvements to the benefit of our customers and review our employee packages to make sure our people receive support that’s relevant in today’s world. From the start of April, we’re expanding our leisure subsidy scheme to give employees more opportunity to claim money back on what they enjoy doing in their spare time.

This year we celebrate 50 years in Glenbervie and it’ll be an occasion for all to enjoy including our current employees, their families and our retired employees who have played a key role in our success. And as we reflect on the last 50 years, it’s time to look to the next 50.

Running this business is, and always has been, about creating sustainable wealth and opportunity for the local community, not short-term gains for shareholders.

We look forward to growing our team further with the recruitment of over 30 new operators as we expand our product capabilities in Glenbervie. And to give back to the community, we’re launching the “£50K for 50th year” campaign, which will see us donate £50,000 to local charities and community groups.

The environmental projects started this year will take shape in 2023/24, creating the foundations for a more sustainable operation in the future.

Macphie is governed by a robust and fair system which considers all stakeholders. Our family ownership structure and our B Corp status holds us to account while providing inspiration from like-minded companies to help us build a better future for our customers, our people, our communities and our environment.”

Alastair Macphie, Chairman

macphie.com

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For more information contact us on reception@macphie.com +44 (0) 1569 740 641