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LEADING IN SUSTAINABLE SEAFOOD / SUSTAINABILITY REPORT 2018

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ABOUT THIS REPORT

Content

This document is the first Sustainability Report of Shore NV, a leading seafood

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About this report

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Leading in sustainable seafood

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Think pure, taste more

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Sustainability along the value chain

company, mainly in shrimp, chilled and frozen. Shore was founded in 2016 by Bencis, after the acquisition of the Belgian Morubel in 2014, followed by the German Ristic GmbH, Costa Rican Rainbow Export Processing S.A. and Terranova Marina S.A. (organic shrimp farm) and a 50% participation in the Dutch Telson BV in 2016.

11 Shore value chain Shore holds office Ankerstraat 2, Ostend, Belgium, and operates now three processing units, an organic shrimp farm and a sales office in Germany dedicated for the German, Austrian, Swiss and Scandinavian markets. In 2016, Morubel nv - stand alone - already published a sustainability report on 2014-2015. The Shore Sustainability Report focuses on the entire group. It covers the social, environmental and economic aspects of sustainability that are important to Shore and its stakeholders. This report is drawn up in accordance with the Global Reporting Initiative (GRI) standards, Core level, and covers mainly the year 2017 (the group’s financial year coincides with the calendar year). It is the company’s intention to publish a sustainability report every two years.

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Pure relations

19

Pure commitment

24

Pure products

28 Pure craftsmanship 33

GRI-content index

35

Shore ambitions


THE BIRTH OF A NEW, STRONG SHRIMP COMPANY After having acquired Morubel, a leading supplier of frozen shrimp and related seafood products, in 2016, Bencis realized further merger and acquisitions in the shrimp sector to strengthen its seafood market position. The first expansion was accomplished on 23rd of March 2016, when Morubel and Ristic joined forces. With its solid position in the market for organic farmed shrimp and its own production facilities in Costa Rica, Ristic proved to be the perfect complement for Morubel. A few months later, on 12th of August 2016, the Morubel-Ristic combination entered into

a joint venture with Telson. The acquisition of 50% of the Telson shares opened the gates to the chilled segment and a broader range of shrimp as the company is mainly active in the field of peeled and unpeeled North Sea shrimp. In addition, the company has a unique position in machine-peeled shrimps through its exclusive collaboration with GPC Kant, who designed and developed the peeling machines.

We now have a strong position in the global market for chilled and frozen shrimp and seafood products. With direct access to shrimp at the source via our Costa Rican shrimp farm and the freshly caught North Sea shrimps, we can offer our customers a broader variety of sustainable and responsible products.

ACHIEVING GROWTH The coming years, we will consolidate on our unique position. We will focus on achieving our growth ambitions in both the fresh and organic products segments, including North Sea shrimps. And this in the three markets that we service: retail, foodservice and food industry. To achieve these ambitions, we have been reshaping our organization. We have been streamlining and integrating the processes of the underlying companies in Shore, we are evolving from a mainly productionfocused environment to a strong commercial enterprise that puts both the internal and the external customer first.

BENCIS BUYOUT FUND AND CAPITAL PARTNERS

SHORE NV

TELSON B.V.

MORUBEL N.V.

RAINBOW EXPORT PROCESSING S.A.

TERRANOVA MARINA S.A.

RISTIC GMBH

50%

100%

100%

100%

100%

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LEADING IN SUSTAINABLE SEAFOOD 2016 marked the birth of a new strong shrimp company: SHORE. Leading supplier of shrimp and related seafood products, chillled and frozen. We aim for the highest level of sustainability with a continuous focus on quality and taste. We believe that this approach will enable us to address the world’s food trends and maintain a long-term successful business.

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As leading seafood company we are fully aware we hold a substantial responsibility towards our stakeholders. We are committed to respond to the expectations they have and to our role in society.

clear view on our performance, as well as on the challenges that lie ahead. By documenting our achievements as well as our ambitions we commit ourselves to walk the talk, and live up to our open and transparent mindset.

Our sustainability report gives you the insight on how our company takes this on board, where we put our focus, how we provide answers to our stakeholders. We want to excel in our core business: shrimp. A pure shrimp, a delicious recipe: the final stage in a sustainable supply chain where all the people involved, from fishermen to factory workers, are treated with respect. A product that complies with the most stringent quality requirements and has been fished in a sustainable way or was responsibly raised. WE THINK PURE, you will TASTE MORE.

Management Team Shore nv.

In this report, we will show you how we build and conduct a pure business. You will have a

“Shore is leading in sustainable seafood. In an holistic approach, beyond certifications, sustainability is embedded in every layer of our organization. Internally, but also when reaching out to our stakeholders, “think pure” is the first item on our agenda, “taste more” always the conclusion.”


PURE COMMITMENT PURE RELATIONS PURE PRODUCTS PURE CRAFTSMANSHIP

our vision: PURE BUSINESS

“We go way back in taking the lead in sustainability. Often we took the challenging road of pioneering: the first seafood company to organize social audits with suppliers in risk countries, a scoop with ASC shrimp in the Benelux and organic shrimp production in Costa Rica. And right now, we are the only company with a substantial offer of machinepeeled North Sea shrimp. We continue to take this spirit forward and even invite our customers to team up and join our Pure Shrimp Initiative with the aim of jointly achieving Pure business.” Chris Meskens, Communication & CSR Manager

“We work hard to put our vision on sustainability into practice. Not only by implementing new policies or more environmentfriendly technologies, but also, and foremost, by getting all employees involved, from board to floor. Because that is the only way to achieve our ambition.” Bart Verstichel,

Managing Director

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We are Shore. Leading in sustainable seafood. We bring the finest that nature has to offer, chilled or frozen. From ocean waters to your store shelves, under our good care. By leading the way in sustainable sourcing, we guarantee pure quality products with great taste. We service retail, foodservice and food industry. Because we love seafood – we ‘re in this business – And we love people who love seafood even more! Shore owns three production sites. Each with their own specialties, know-how and specifications. But all three have one thing in common: expertise, a focus on quality. • MORUBEL in Belgium processes, packs and distributes frozen shrimp and other seafood specialties for the European retail (private label), foodservice and food industry. EXPORT • RAINBOW PROCESSING plant in Costa Rica is equipped with its own cooking line and has a cold storage capacity of up to 100 MT. The plant was built to create an organic supply chain

for the CORPORACIÓN TERRANOVA MARINA FARM (Costa Rica). The latter being Shore’s organic Vannamei shrimp farm producing up to 350 MT of shrimp per year. With its 160 ha, it is Costa Rica’s second largest shrimp farm. • TELSON in the Netherlands is mainly active in the field of unpeeled and peeled North Sea shrimp (Crangon crangon), also known as brown shrimp, and, thus, opens the gates to the chilled segment. Shore also has a dedicated sales office for Germany, Austria and Switzerland, operating as RISTIC.

122

165

Belgium

Costa Rica

311

employees

20

The Netherlands

4

Germany

130 million € Annual turnover

22 million € Added value

410

Quantity of products (SKU’s)


“We are working closely with our suppliers to source as much as possible from sustainable regions. Very important is the long business relationship with our sourcing partners all over the world.” Manuel Backmeroff,

Business Unit Manager Ristic OUR CUSTOMERS (SECTORS)

18%

47%

7

35%

INTERNATIONAL SOURCING Shore offers a wide variety of seafood products, mainly shrimp, chilled and frozen. Shore sources tropical and cold-water shrimp through wild catch and aquaculture. In addition, Shore’s offer includes related seafood products such as crayfish, squid, mussel meat, scallops and surimi. The seafood products are delivered through a broad base of approved suppliers from various parts of the world, including India, Vietnam, Indonesia, Pakistan, Argentina, Peru, Ecuador, Canada, China and the Netherlands. And of course our own farm in Costa Rica.

OUR MARKETS Shore distributes its products to the retail, foodservice and food industry. Products are mostly sold in Spain and Portugal, the Benelux, Germany, Italy and France.

TAKE (Y)OUR SIGNATURE Shore is predominantly a private label supplier, the anonymous force a retailer put its trust in. But we also have a great foodservice brand, renowned for its high quality standard: Elite, Masters of Good Taste. Other own brands are mainly used for new product introductions or in /out promotions. For instance Morubel pure seafood love, as Shore’s general brand, and Ristic for the Germany market.

retail foodservice

industry

OUR CUSTOMERS (COUNTRIES) 2% 15% 36%

21% 5%

9%

Spain / Port Italy France Other

12%

Netherlands Germany Belgium


SUSTAINABILITY ALONG THE VALUE CHAIN At Shore, we believe sustainability has a considerable impact on the performance of a company. For this reason, sustainability is firmly embedded in our organization and how we conduct business. Based on the sustainability aspects that are most valuable to us, we regularly assess our performance and evaluate how we can continue to improve our efforts to establish a pure business from ocean waters to kitchen tables.

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RESPECT FOR OUR ­PRODUCT, RESPECT FOR THE WORLD WE OPERATE IN In May 2017, Shore conducted a materiality matrix workshop with sustainability expert slidingdoors. The purpose of the workshop was to define the sustainability aspects that are material (i.e. most important) to us, taking into account the following information: • Our mission and values • The Global Reporting Initiative guidelines (www.globalreporting.org) • The Sustainable Development Goals (SDGs) • A ranking of sustainability aspects based on importance for Shore and relevance for our priority stakeholders (customers, employees, suppliers, and owners) • The outcome of the assessment on our

Environmental, Social and Governance (ESG) related exposures, risks and opportunities, conducted on behalf of Bencis Capital Partners • Annual objectives and key performance parameters The material sustainability aspects will be monitored based on a set of indicators that have been defined during interviews with several management representatives. We are keen on making the implementations fully transparent and on continuing the sustainability path that lies ahead.

ANNUAL THIRD-PARTY ASSESSMENTS TO ADVANCE SUSTAINABLE ­PERFORMANCE Every year, on behalf of Bencis Capital Partners, a third party assessment is conducted on sustainability-related exposures, risks and opportunities. This third-party assessed self-reflection on where Shore stands as a socially responsible company helps us evaluate what we have already achieved and where we want to be in the short and long term in respect of sustainability. It helps us in reducing and mitigating risks and in looking for opportunities to create value beyond financial return.


OUR SUSTAINABILITY PERFORMANCE Sustainability is at the heart of Shore’s activities. It is our mission to do business in a pure way taking into account our four strategic pillars: Pure relations. Our relationships with suppliers, customers, shareholders and other stakeholders are built on transparency, respect and living up to our promises. Pure commitment. We respect the world in which we operate and only work with the finest seafood out there, whether it concerns wild catch or aquaculture. Pure products. We offer nothing less than good, safe, honest and authentic seafood, and have the organization in place to achieve just that. Pure craftsmanship. We are committed to delivering tempting tastes and textures through the most sustainable processes.

RESPECT FOR THE PEOPLE WE WORK WITH, THROUGHOUT OUR VALUE CHAIN Respect for people is an integral part in the way we do business. From ocean waters to kitchen tables, we take ecology, environment, health and safety, ethics and economic responsibility at heart in everything we do. And we continuously strive to improve our efforts.

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HOW SHORE’S STRATEGIC OBJECTIVES CONTRIBUTE TO THE SDGs In 2015, the 17 Sustainable Development Goals (SDG) were launched by the United Nations. They are a universal set of targets and indicators designed to help countries end poverty, protect the planet and ensure prosperity for all as part of a new sustainable development agenda. Shore believes that its impact is most relevant and strategically embedded for the following SDGs:

Sustainable development goal

See page

Risks and impacts

What Shore is doing

Decreasing availability of wild sea life for catch, mainly due to overfishing and climate change

• We want to ensure sustainable food production systems, that help maintain ecosystems. • We source only the best quality products, and we do this in a sustainable and responsible way.

p19-23

The major supplying countries (India and Vietnam) of both wild catch and aquaculture seafood are sensitive to social labour conditions

• As a member of Amfori, we commit ourselves to social auditing our suppliers in risk countries. • We help upgrade working conditions with all our suppliers in risk countries through an improvement programme, which includes social audits • We respect and protect labor rights and provide safe, secure and healthy working environments for all employees.

p19-23

• We adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality • We try to generate an income for vulnerable women communities, be it factory workers or in our projects

p19-23

• We avoid or mitigate the foreseeable environmental, health and safetyrelated impact over the lifecycle of products and processes and take a precautionary approach to environmental challenges. • We improve the efficiency and climate resiliency of operations. • Our processing plants work according to HACCP guidelines and have been certified IFS Higher Level and or BRC Grade A+ (unannounced audit) • We motivate suppliers to improve supplier sustainability management. • We investigate to reduce energy consumption (electricity, water) in all our plants

p19-23

• We sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and by taking action for their restoration in order to achieve healthy and productive oceans • Shore supports sustainable development of shrimp fisheries and aquaculture. We actively promote MSC, ASC, organic and Naturland certifications. • We invest in fishery and aquaculture improvement projects and in mangrove restauration.

p19-23

In the developing countries, fishermen and peelers are often working for poor fares

10 We commit ourselves to produce top-quality products, respectfully and sustainably.

Wild catch fishery imposes serious environmental issues and has a major impact on the ocean’s ecosystems. Aquaculture is not without issues; working conditions at sites are often poor, and heavy water pollution, escaping fish, mangrove deforestation and animal feed are affecting the environment. Furthermore, monoculture can result in widespread diseases, affecting both production and biodiversity.

p12-18

p12-18

p28-32


SHORE VALUE CHAIN RAINBOW EXPORT PROCESSING CR plant

RAW MATERIALS & FINISHED PRODUCT*

MORUBEL OOSTENDE, BE plant

TELSON LAUWERSOOG NL plant

LOGISTICS

PROCESSING & PACKAGING STORAGE

TRANSPORT

CUSTOMER

CONSUMER

11 approved suppliers and project partners

(certified) fisheries and FIP’s under own FIP partnerships

Terranova Marina shrimp farm

(certified) aquaculture and AIP partnerships under own control

Trusted suppliers

packaging materials

external storage

auxiliary materials energy & water

Transparent communication Respect for the people we work with State-of-the-art technology efficient use of resources Limiting product loss Up-to-date knowledge Tempting tastes

quality controls: inbound, production, exit controls

(intern lab & external lab)

product development, process improvement input customer specification SHORE COMMERCIAL DEPT (Ristic GmbH, Morubel nv, Telson BV, Rainbow Export Processsing)

Meeting our Customers’ needs

CUSTOMER

DIRECT CONTROL *Own operations or approved suppliers

Request / offers / tender / Order

INFLUENCE


PURE RELATIONS We take care of our employees and aim to build long-term relationships with them. How? By being an honest employer, by providing safe and healthy working conditions, by communicating openly and transparently, by offering them fair pay and training that enables our employees to further develop their skills, both professional and personal.

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COMMUNICATING OPENLY AND TRANSPARENTLY We sit down with our employees on various occasions: in workers committees, committees for prevention and safety at work and personnel meetings. In addition, we communicate our results to all our employees on a monthly basis and we keep them updated on important new contract signings, new customers, etc. via our breaking news display and memo’s to all Shore personnel. As Morubel set a target on developing HR policies, with good result, these policies will also be implemented in the other sites.

CLEAR COMMUNICATION TO ALL STAKEHOLDERS We believe that building good relationships is a condition for pure business. Not only with our personnel, but also with our main stakeholders. We want to get to know the people we come across, so that we can inform them properly on how we conduct our business and what we have to offer. We value close contacts with our stakeholders to enhance trustworthy relationships: • Suppliers: we build a close and personal relationship with our suppliers through regular onsite visits, support during audits and assistance in certification processes. • Customers: we value face-to-face contact with our customers. Our sales team aims to meet with them regularly,

for instance during the sector’s main trade fairs or meetings at their offices. But our customers are also welcome to visit our operations in the different countries and give presentations in which our quality, R&D or CSR people participate. • Shareholders: we keep our owners well informed on our business results and plans. We meet monthly for Board meetings and supply ESG reports (Environmental, Social and Governance) as well as financial reports every year. • banks & investors: we have an open and transparant communication with our banks and investors. Facts and figures are presented during quarterly meetings.


TOTAL EMPLOYEES

Production (supervisors, quality)

Women

41 Morubel 134 Rainbow EP 02 Telson 02 Ristic

12 Morubel 08 Rainbow EP 02 Telson

74 Morubel 141 Rainbow EP 12 Telson SDDS

>10 years

Telson

3 12 3

< 5 years 5-10 years

>10 years

Rainbow EP

Morubel

< 5 years

5-10 years >10 years

Ristic

2 1 1

< 5 years 5-10 years

>10 years

> 50 years

5-10 years

97 46 22

30-50 years

< 5 years

< 30 years

Morubel

Rainbow EP > 50 years

SENIORITY

45 28 49

36 Morubel 16 Rainbow EP 04 Telson 04 Ristic

30-50 years

81 Morubel 31 Rainbow EP 16 Telson 02 Ristic

Staff

Production

< 30 years

Men

14 69 39

41 84 40

Telson

Ristic 30-50 years

> 50 years

Parttime

< 30 years

Fulltime

Ristic

3 1

> 50 years

output

30-50 years

27 Fulltime per 138 paid hour/

Rainbow EP

Fulltime

Telson

18

Morubel

43 Fulltime 5 Parttime per 74 paid hour

< 30 years

CONTRACT TYPE

5

8

5

1

3

0

13


14

“I am happy that I work in a sustainable company such as Telson: if you have the choice, you choose for sustainability!” Bert Van der Kooy,

Production worker Telson

“At Shore, we highly value the well-being of our workforce. Different events are organized in all the plants, such as a Christmas party in Costa Rica, a team building event in Oostende, a cosy dinner at Telson. People get to know each other in another context, away from the daily work, and this benefits the general atmosphere.” Bart Verstichel, MD Shore

“The way we think about sustainability, how we work hard to reduce our environmental footprint and what we do to address the social challenges in the supply chain make me feel proud of working for a company that values quality as much as Shore does.” Carine Vermoote, Workers Committee Morubel

“In our company we work committed and with a lot of responsibility trying to be as fair and correct as possible, acting with integrity and respecting each other in a healthy coexistence between us and our (work) environment.”

Hellem Silva Cordero, HR assistant Rainbow Export Processing


SAFETY FIGURES 2017

Belgium Morubel

6 Accidents 131 Lost working days 34.9 Frequency rate 2.7 Severity rate

PROVIDING SAFE AND HEALTHY WORKING CONDITIONS Ensuring employees a safe and healthy working environment, is one of Shore’s main concerns. It is the first agenda point on each Management Meeting and we want health and safety top of mind in every Shore site.

The Netherlands Telson

Telson was without accidents in 2017

One of our objectives is to further enhance our safety performance. For this reason, we now focus on behaviorbased safety, meaning that we put a lot of effort in sensitizing all personnel, from Managing Director to frontline workers, and getting them all involved. Safety is of everyone’s concern. So, we all need to take responsibility and be ready to adjust our behavior. It’s the only way we can truly make a change and strengthen our safety culture.

Costa Rica Rainbow E.P.

20 Accidents 106 Lost working days 45.6 Frequency rate 0.24 Severity rate

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DEVELOPING SKILLS

TRAINING HOURS

1798

2038

Shore pays lots of attention to training, at every level: from on-the-job training and CE driving courses to ergonomic lifting and Excel improvement or English classes in Costa Rica. Our shrimp academy provides in-depth training on product, operations, quality, sustainability updates and is repeated annually for newcomers or as an update for other employees.

Morubel

Telson

756 PRODUCTION STAFF

OFFICE STAFF

WOMAN

MEN

OFFICE STAFF

PRODUCTION STAFF

WOMAN

MEN

OFFICE STAFF

PRODUCTION STAFF

16

32

122

128

187

308 147 WOMAN

Mauricio Garita Segura, Quality Systems Manager in Rainbow E.P. Costa Rica

348

“Rainbow Export Processing is a company that cares about the good performance of its employees. Trained staff (internal or external) transmits their knowledge through training and learning workshops, which are taught inside and outside the company. This comprehensive training program makes the Rainbow workers grow in skills and - at the same time – identifies future training needs”

MEN

16

997

As the new Telson factory got IFS and BRC certifications in 2017, training for all personnel was mainly focused on quality, food safety and MSC, ASC and organic chain of custody.

Rainbow EP


“Our management is very accessible. The doors are always open and they welcome any kind of suggestion for improvement. You really get the feeling that they’re concerned with the staff’s well-being.” Gino Flamien, Workers Committee Morubel

IEDEREEN LEERT! (EVERYBODY LEARNS) Morubel is actively involved in the Everybody Learns project, a consortium of large enterprises and SMEs in Belgium that wants to provide a modern-day answer to the growing need for trainings from a broad group of employees. The companies offer a broad range of trainings that aim for personal as well as professional development, not necessarily linked with the trainee’s current job.

“I joined Shore in September 2017. I was very pleased with how they welcomed me and how they supported me in my first few months at the job. Shore is really professional in how they treat their people and surely deliver on their promises.” Vicky Loncke, accounting Ristic

“I’m grateful for the opportunities Morubel has given me. I started out as a trainee, then worked a couple of years in production and now I’ve found my place here in the lab. All thanks to the training opportunities that the company gave me.” Jonathan Samijn, Quality Control Morubel

“The family culture here at Morubel is priceless. I’m from Afghanistan and the first few years in Belgium were tough. But the company took me in, gave me the chance to get my license as a forklift driver and learn the ropes of production preparation. Now, I take pleasure in my work and feel proud when the job’s well done.” Sherzad Hedayatullah,

production worker Morubel

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Did you know that …

41% of Shore

employees are men

24%

18

About of the employees have been working with a Shore company for more than ten years Shore employs nationalities.

16

Besides the obvious Belgian, Dutch, German and Costa Rican, we also have French, Spanish, Nicaraguan, Panamanian, Afghan, Russian, Chinese, Serbian, Iranian, Congolese, Macedonian and Polish colleagues

27%

Approximately of the employees are older than 50 years

A new organization, a new company structure: •The five-member management team discusses strategic and operational topics on a monthly basis: safety, sales forecasts, raw material situation, finance, planning, etc. • The Board of Directors evaluates the group’s strategic performance on a monthly basis. It comprises the managing director, a representative of Bencis, an independent director and two members of the management team (Operations Director and Commercial Director).


PURE COMMITMENT We source only the best quality product, and we do this in a sustainable and responsible way. To deliver on this promise, we acquired direct supply through aquaculture and wild catch and work with a carefully selected set of certified suppliers. Through the Pure Shrimp Initiative, we also initiate aquaculture and fishery improvement projects enabling us to develop social, environmental and sustainable structures throughout the entire supply chain.

SOURCING ONLY THE BEST We strive to be the leading supplier of shrimp and related seafood, and we want to succeed with the utmost respect for the world in which we operate. To achieve this ambition, we rely on: • Direct sourcing: in 2016 we took ownership of an organic shrimp farm (Vannamei) in Costa Rica. • Trusted supply: we work with a limited set of suppliers that meet the strict sourcing requirements and specifications stated in our purchase manual. By creating Shore, not only was the leverage in sourcing countries increased by making Shore a more powerful buyer, but the company also gained direct access to organic shrimp in Costa Rica and India and has this unique offer of machine peeled North Sea shrimp.

WORKING WITH CAREFULLY SELECTED SUPPLIERS At Shore, we put a lot of effort in selecting our suppliers. It starts with (potential) suppliers filling in our Supplier Assessment Questionnaire (SAQ) so that we can evaluate the quality management level and sustainability of their business. Once suppliers are approved, we aim to build a close and long-term relationship with them. Hence, we regularly visit our suppliers on site and verify whether they can live up to our expectations. At least once a year, we assess all of them based on three main criteria: • Track record (flexibility, logistics, prices and information) • Product quality • Production facility

Based on this assessment, we divide our suppliers into three categories: • A-suppliers are the best of the best. • B-suppliers enter an improvement program. In 2016, we supported one supplier in an improvement project. In 2017, 5 suppliers asked for our support. During these programs, we jointly invest with the supplier to get product quality and social conditions at a top level. In 2018 we will further invest in these improvement programs. • C-suppliers cannot live up to our expectations and the partnership with Shore is ended.

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CREATING A CERTIFIED SUPPLY CHAIN

20

To concretize our commitment to sustainability, we look for the appropriate labels as well as full traceability of the supplierâ&#x20AC;&#x2122;s downstream activities. We also assist suppliers in achieving certification and support them during audits. In this way, we aim to achieve a supply chain that is independently certified according to various standards:

11 Principles of the BSCI code of conduct B The rights of freedom of association and collective bargaining C Fair remuneration D Occupational health and safety E Special protection for young workers F Ethical business behaviour G No discrimination H Decent working hours I No child labour J No bonded labour K No precarious employment L Protection of the environment

FISHERY

(75% OF SALES VOLUME)

CERTIFICATIONS:

AQUACULTURE

(25% OF SALES VOLUME)

CERTIFICATIONS:

SOCIAL STANDARDS:

FOOD SAFETY:

we aim for MSC-certified supply where possible, but MSCcertified tropical shrimp fisheries are still very scarce. We engage ourselves in fishery improvement projects (Palk Bay India and Argentina Red shrimp) with the aim of achieving MSC certification on the longer term. supply from farms using a management system according to ASC aquaculture standards, GLOBALG.A.P. or Best Aquaculture Practices (BAP). Moreover through our direct access to organic certified shrimp in Costa Rica and India (EU organic and Naturland certifications) we have a strong focus on organic shrimp. as a member of the Amfori BSCI (Business Social Compliance Initiative) we commit ourselves to social auditing our suppliers in risk countries. We also accept social auditing schemes such as ICS, SMETA (Morubel is SMETA 4 pillars audited) and SA 8000 certification. Target is to have all >100T suppliers audited with an A, B or C result). In this context even Morubel is SMETA 4 pillar audited and our Costa Rican operations will be BSCI audited in 2018.

we aim for 100% GFSI certified suppliers in our portfolio. In 2017, 89% of our bigger suppliers (80 % of our trading volume) were GFSI certified. However, it is our aim to buy our total volume from GFSI suppliers.

And last but not least, we only buy products with correct health certificates and will ­NEVER allow documents to be tampered with (species, origins, treatments).


Wild catch, aquaculture and seafood industry issues Issues

Description

SHOREâ&#x20AC;&#x2122;s measures Supplier accreditation

The capture of bycatch poses a threat to species diversity and ecosystem health and is often unregulated Overfishing and bycatch in ocean fishing

Disruption of ecosystem balance in aquaculture

The highest rates of incidental catch of non-target species are associated with tropical shrimp trawling

Aquaculture impacts the ecosystem by mangrove deforestation and by releasing a steady stream of organic waste, chemicals and antibiotics to groundwater or coastal estuaries. These can cause algae blooms and aquatic plant and animal deaths Further, there is a risk of major outbreaks of disease due to monoculture shrimp farming

Working conditions on supplier production sites

Seafood fishing and farming often employs a large number of workers on farms and in processing plants, potentially placing labour practices and worker rights under public scrutiny

Food safety

From processes on the farm or boat to practices in the kitchen, human activities play an important role in food safety. Prevent contamination and food-borne illnesses is a key priority.

MSC: Market leader in sustainable wild caught fishery. Secures sustainability of stock, ecosystem and fishery management

ASC: Responsibly farmed seafood. Includes social standards, environmental impact, animal welfare and use of antibiotics

Amfori BSCI: social standard monitoring correct working conditions in the supply chain

GFSI: An industry-driven initiative providing thought leadership and guidance on food safety management systems necessary for safety along the supply chain (BRC, IFS, GLOBALG.A.P., ACC)

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ADDRESSING CHALLENGES

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We invest heavily in creating a fully sustainable supply chain. However, there are still challenges to address: • Full traceability of the sourced shrimp. We want full transparency in our supply chain, and that is why we aim for ASC certification or organic shrimp in aquaculture and only work with trustworthy suppliers who have a third party audited management system. • In order to avoid unauthorized use of antibiotics, we work with local agents that check containers and conduct unannounced reality checks, verifying the specifications, origins and use of antibiotics.

PURE SHRIMP INITIATIVE Together with a strong network of reliable partners in various sourcing countries, we have launched the Pure Shrimp Initiative (merging Morubel’s Pure business concept and Ristic’s Clean Shrimp Initiative). This initiative gradually develops sustainable procurement projects by launching and implementing aquaculture and fishery improvement projects in the shrimp supply chains. The Pure Shrimp Initiative: • is committed to socially and ecologically responsible structures • strives for internationally recognized certifications (Bio, MSC, ASC, BSCI audits) • attracts sustainable entrepreneurship throughout the entire chain

• is committed to profitable shrimp production with the involvement of local partners Currently, the Pure Shrimp Initiative has several improvement projects running, including: • The restauration of natural mangrove forests in India and Costa Rica • The traditional production of black tiger prawns in West Bengal, India • The red shrimp FIP’s in Argentina • Fishery Improvement Projects in India • Fresh North Sea shrimp: straight from sea to pack. Read more about the Pure Shrimp initiative on www.pure-shrimp.eu

“Sustainability is one of the main criteria in our procurement strategy. And we mean it. We do not shy away from excluding certain fish species from our offering for sustainability reasons. Therefore, we value suppliers such as Shore and their Pure Shrimp Initiative helping us to achieve a more sustainable supply of shrimps” Aldi Süd, Partner in the Pure Shrimp Initiative

“The Pure Shrimp Initiative is Shore’s commitment to establish a sustainable shrimp supply chain by joining forces with dedicated partners. It is an explicit invitation to our customers to join us in improving our business.” Chris Meskens, CSR Shore nv


Argentine red shrimp fishery improvement projects Via the Pure Shrimp Initiative, Shore is a partner in the fishery improvement projects (FIPs) for both onshore and offshore shrimp fishing in Argentina. Together with stakeholders in the fishery and CeDePesca, a non-profit organization assisting Latin American fisheries in attaining sustainability, Shore is supporting the local stakeholders to obtain MSC certification.

“Our relationship with Shore started about six years ago. The company was looking for a reliable supplier of Argentine red shrimp who was willing to get involved in a sustainability project for this specie. We participate in the two Argentine red shrimp fishery improvement projects. With the support of an experienced partner such as Shore we feel confident to tackle the challenge of achieving MSC certification” Federico Angeleri, Commercial Director, Grupo Veraz

Mangrove restoration project in India Together with various partners, Shore has launched a project to restore up to 30ha of mangroves in the Sundarbans area in southern Bangladesh and the southern part of West Bengal, India. The project started with the reforestation of 1ha in 2016, funded by Ristic GmbH and German organic retailer Alnatura. In 2017, further afforestation of up to 30ha was initiated, as part of the 3-year ALDI Süd project, which also includes mangrove afforestation in Costa Rica, the initiation of a Fishery Improvement Program in India and the launch of social programs in India and Costa Rica. Apart from mangrove restoration, the Pure Shrimp Initiative also plans to set up an integrated mangroveshrimp farming demonstration project (up to 9ha of farm area) as well as community work to improve local income opportunities. Local sustainable shrimp supplier Blue Sea Aquaculture will support the NGO NEWS (Nature, Environment and Wildlife Society) in the development of the pilot for the integrated mangrove-

shrimp farming project.

“Blue Sea Aquaculture is a young company that processes and distributes organic shrimp, which we source from local farmers in the West Bengal region. We have gradually built a strong relationship with the farmers and it is our ambition to help improve the environmental and social situation in their communities. To achieve this, we can count on the expertise and professional support of Shore.” Apurba Saha, Blue Sea Aquaculture

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PURE PRODUCTS Companies with a keen sense of responsibility make good products. Shore is a perfect example. We have a strict set of procedures and requirements to make sure that we deliver our customers nothing less than the finest shrimp and related seafood. With the certifications to back this.

QUALITY AND FOOD SAFETY, THE SOURCE OF OUR SUCCESS 24

Shore is 100% about safe, quality food. We have an elaborate set of procedures to ensure the safety and quality of our products in various phases of the process: AT THE SOURCE We constantly monitor and control the quality of our suppliers through regular visits and audits. We even invest in improving their quality standards to meet our requirements. We extended our control at the source by acquiring our own shrimp farm and processing plant in Costa Rica.

UPON ARRIVAL AT THE PLANT

LABORATORY TESTS

Once the product arrives at our processing facilities, it is checked for compliance with our quality purchase specifications stipulated in our purchase manual.

We conduct sensory quality checks in our in-house laboratory to ensure flavour, odour, texture and colour, including important chemical parameters. Microbiology and contaminant monitoring are done by external accredited laboratories.

DURING PROCESSING The products are checked according to HACCP procedures, IFS and BRC standards, and customer requirements. Regular plant checks ensure that everything is in place to ensure the quality and safety of our products (use of soap, proper clothing, condition of the building, etc.). In 2017, Morubel was subjected to the first ever unannounced BRC/IFS audit, with good results. Rainbow Export Processing obtained IFS Higher Level and Telson BRC and IFS certificates. Similarly, customer audits are increasingly unannounced as well.

AFTER DELIVERY We follow up on complaints, based upon type of complaint, root cause analysis, corrective actions and preventive actions. Three times per year, we organize Quality meetings to evaluate our performance, complaints, the results of external audits of our plants as well as in the countries of origin, including the corrective and preventive measures to take.


PRODUCT INTEGRITY AND AUTHENTICITY ENSURED Our customers can rest assured that their specifications are exactly met. Next to our stringent quality checks throughout our chain of production, we offer full traceability: we document every step from the farm or the processing plant, the production unit and delivery to the final customer. In addition, various measures have been taken to avoid any risk of fraud. For example, we ensure the trustworthiness of our products and suppliers by buying certified product when possible, as well as by regularly visiting and auditing the suppliers’ production sites. Whenever we feel the need for additional inspections, we intensify the inspection plan and added additional external, independent audits, even on top of existing certification scheme’s requirements.

MEETING OUR CUSTOMERS’ NEEDS It is our objective to make sure our products meet our customers’ requirements. To ensure just that, our Product Development, Quality and Sales people work closely together with the customer to find the best product specifications to fit their needs. Our forte in that regard is our global approach, from farm or fishery to end product, and the expertise we have.

SUSTAINABLE SOURCING

SOCIAL AUDITING

SMETA audit

BSCI audit

FOOD SAFETY

“In a competitive market, we are forced to source at the best price. Sustainability and pureness, though, cannot be compromised. Shore has a very effective quality control system and some competent and well educated employees who are on top of traceability and risk assessment. We have all reason to find confidence in their skills.” T. Edal Nielsen, Fregat Fiskeeksport

GROWING NUMBER OF SUSTAINABLE PRODUCTS

Because of environmental and social impacts and increasing social awareness, the number of sustainably certified products in the market is increasing. MSC and ASC are the industry standards, and Amfori BSCI or Smeta auditing are often used to add focus on social aspects. Our strength in organic shrimp lies in the unique position we have in organic sourcing (own operations in Costa Rica, project in India). International retailers and food chains are committed to serving organic, MSC and ASC certified seafood. Customers with strict CSR targets support FIPs (Fishery Improvement Projects) to obtain MSC certification as this is needed to guarantee sustainable products in their shelves. More and more customers send CSR charters and a big focus on social compliance continues.

25


LABELLED PRODUCTS: A CHALLENGE

26

The willingness of customers to pay more for labelled products is lagging behind, especially in the southern European countries which also consume the largest amount of shrimp. Markets in Spain, Portugal and Italy are also still focused on tropical wild catch shrimp, were hardly any certification is available. Also in foodservice the demand for sustainable seafood is almost nonexistent. In Northern Europe aquaculture shrimp is the bigger market, and there the demand for sustainably certified shrimp (ASC or organic) is substantial. While Shore is a supporter of MSC, in 2017 MSC sales volume was <1 %. In December 2017, the Dutch, Danish and German shrimp sector achieved MSC certification. The MSC-certified North Sea shrimp fishing fleet represents 95% of the wild catch in the North Sea and we aim to buy only from MSC certified fishermen. Shore is showing effort to realize more sustainable sourcing. By taking ownership of an organic shrimp farm and shrimp plant in Costa Rica (Corporación Terranova Marina and Rainbow Export Processing ), we now have direct access to 350MT of organic Vannamei shrimp per year. The plant is EU Organic and Naturland-certified and the farm is the second largest shrimp farm in Costa Rica. This acquisition has given us full control

of the process and product, enabling us to counter the limited number of organiccertified suppliers available on the market. Also in India we have a unique sourcing position for organic Black Tiger prawns, which is part of our Pure Shrimp Initiative projects. Our organic turnover is realized in the retail and foodservice industry, in Germany, Austria and Switzerland, where often an “organic plus” label: Naturland, is required.

Aquaculture 2015

8% 16% 79% OTHER

5%

Aquaculture 2017

31% 16% 82% OTHER

2%

ASC suppliers often also have GlobalG.A.P. and/or BAP certifications. Hence double certification. BAP (ACC) certification is the minimum certification required by our purchase department.


TEMPTING TASTES Good food is part of what makes life worth living. Shore ensures our product is an unforgettable savoury experience. With an increased focus on our chilled assortment, our research team is investigating the possibilities in reducing the additives content, while keeping an acceptable shelf life. Another focus of our NPD team is to develop sustainable added value products. From the conceptual approach, sustainable labelled seafood is only a starting point. For all ingredients, spices, sauces, additives and packaging we will look for the most sustainable solutions. In this view we try to avoid palm oil, work with natural ingredient and, reduce salt.

27

â&#x20AC;&#x153;With NPD, our focus lies in improving development and processing techniques to achieve what food really should be: a pure product. Any added value consists in making our product even better and more attractive.â&#x20AC;? Jeroen Lamote, Product Developer Shore


PURE CRAFTSMANSHIP Companies with a keen sense of responsibility make good products. Shore is a perfect example. Our commitment to sustainability is also reflected in how we organize and operate our business. We work with great craftsmen, we want to make sure they take pride in their work and feel empowered on the job. We aim to provide them the best possible tools, so that processing is done in the most efficient way and with a minimum effect on the environment. We commit ourselves to produce top-quality products, respectfully and sustainably

28

Morubel

Rainbow Export Processing

Telson

37.400 m2

2.500 m2

1.000 m2

3

processing lines

1

thawing line

6

4

automatic peeling machines

2-4

packaging lines

1

Separated warehouses for raw materials and finished products

cooking line

Separated warehouses for raw materials and finished products

Ice machine: will be doubled in 2018

Capacity

2

lines of hand peeling

packaging lines

14.000 ton

1

thawing room

8 ton / day 3

freezing tunnel (two blast freezer, one IQF)

100 ton

Cold storage capacity


WORKING WITH STATE-OF-THE-ART TECHNOLOGY AND KNOWLEDGE We want our workers to perform their job as efficiently as possible. Handing our people the proper tools and trainings will help them produce the best possible products: • Tools. We constantly fine-tune our production lines for retail and bulk packaging to ensure we are equipped with the most up-to-date technology. • Training. We stimulate workers to share their training needs or remarks that could improve their daily operations. Similarly, if we see opportunities for improvement in their work, we will inform them as well. Evaluations are done regularly.

“We strongly believe in the 5S systematics. It suits us. Moreover, by involving all employees and making them owners of a part of the factory, we aim for a sustainable result.” Alain Bockstaele, Operations Director Shore.

STRIVING FOR OPERATIONAL EXCELLENCE In 2017, we initiated a series of projects in Morubel Oostende to achieve operational excellence. These projects are focused on enhancing our customer focus, keeping our employees positive and empowered, and continuously improving the current activities in the workplace. In developing these projects, we evaluated various work organization methodologies, including lean management, total productive maintenance (TPM)and 5S. From these methods, we then selected the principles that best suit our business. By implementing the 5S methodology, we focus on giving ownership to our workers. In 2017, the first audits took place and the various departments achieved an 80% score. Our main ambition here is to keep our workers’ level of involvement high and stimulate their commitment to realize our growth ambitions. It is our ambition to initiate similar projects aiming operational excellence in the other Shore plants.

29


Ready to change the shrimp business Through Telson, Shore now has a unique position in machine-peeled North Sea shrimp. And this opens up various opportunities that will change the world of North Sea shrimp.

30

Shore’s chilled plant Telson is a major player in the North Sea shrimp business. The company realizes a 25MIO € turnover based on 95% North Sea shrimp. It covers one third of the global market for North Sea shrimp, peeling 100 tons of freshly caught shrimp per week. For many years, Telson, just as its competitors, has been transporting most of the shrimp to their dedicated peeling station in Morocco, where about 500 workers (mainly women) would peel the shrimps before shipping them back to the Netherlands.

Efficient peeling machines rule out return trips to Morocco These Moroccan return trips are bound to disappear. Through a close collaboration with GPC Kant, the

company that designs and develops shrimp peeling machines, we are now capable of peeling 100,000 kg of shrimp per week in the brand-new production plant in Lauwersoog, the Netherlands.

Short supply chain Using these peeling machines, Telson can keep a short shrimp supply chain. It only takes 400 m for the shrimp to reach the peeling machines, instead of 5,400 km to and from Morocco. In addition, the shrimp can be processed the same day, in only a couple of hours, compared to spending ten days on Moroccan return trips. Peeled within 24 hours is a set target. And as the Moroccan region is experiencing economic growth, other opportunities are arising to counter the local loss of jobs.

New business opportunities with shrimp residues In addition, by peeling the shrimp locally, Telson now has access to the peeling residues, which amounts to about two thirds of the original shrimp’s waste. This waste can be sold to the catering business (production of croquettes, bisque, etc.), and the chitine can be used in a wide variety of applications such as soil improver products, paint, etc.


EFFICIENT USE OF RESOURCES

Shore’s processing plant in Belgium, Morubel, has been evaluated on the use of resources and its waste management. The results are the following:

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ENERGY

WATER

WASTE

Cooling the storage halls takes up most of the plant’s energy and freezing the shrimp (liquid nitrogen). More than half of the plant’s energy use comes from renewable and cogeneration sources now. And from 2019 on, this will be 100%.

The plant uses a considerable amount of water, for processing as well as cleaning purposes. Waste water is sieved onsite to remove large debris before it is disposed into the public sewage system. As a result, the waste water complies to the prevailing standards.

Our packaging suppliers only deliver recyclable cardboard (FSC certified). Hence, we can sell our cardboard and also most of our plastics waste, after they passed through our two onsite presses, to recyclers. We also sell our wood waste. Our pallet supplier buys back all broken pallets, and other wood waste is either sold to recyclers for reuse or to incinerators for energy production. Organic waste is also sold. Predominantly for reuse in animal feed products.

The results of an energy audit recently carried out will be used to identify a set of actions for the coming years with the aim of a reduction of electricity and water mainly.


ENERGY FIGURES

Belgium 2014 597 kWh/ton

Electricity

2017 0,377 kWh/ton

2014 0,402 kWh/ton

Water

2017 13,08 kg/ton

Flammable waste

2,5%

Electricity

2014 40,17 m3/ton

2017 36,48 m3/ton Water

2017 10,67 m3/ton

2014 13,75 kg/ton

2017 1.436 kWh/ton

2017 839.157 kWh

Gas

2014 9,82 m3/ton

Costa Rica 2014 1.555 kWh/ton

2017 790 kWh/ton Electricity

32

The Netherlands

Gas

2017 9.815 m3

Planned 2018 Solar panels

Key facts 98% renewable energy (mostly water) Planned New iceplant, doubling capacity More efficient freezing equipment

1,1%

2014 2017 Organic waste as % of total waste volume Planned 100% green energy by 2020

â&#x20AC;&#x153;Costa Rica has set clear goals as to the use of its natural resources, but it also has an ambitious goal to be carbon neutral by 2021. Costa Rica is far ahead of most countries when it comes to generating clean energy. The country was able to meet electrical generation needs without fossil fuels for almost all of last year, according to the Costa Rican Electricity Institute.â&#x20AC;?


GRI-CONTENT INDEX G4 GENERAL STANDARD DISCLOSURES

Location of disclosure in report

1. Organizational Profil 102-1

Name of the organization

cover

102-2

Activities, brands, products, and services

p6,7

102-3

Location of headquarters

p2

102-4

Location of operations

p2

102-5

Ownership and legal form

p2,3

102-6

Markets served

p7

102-7

Scale of the organization

p6

102-8

Information on employees and other workers

p13

102-9

Supply chain

p11

102-10

Changes to the organization and its supply chain

p2,3

102-11

Precautionary principle or approach

p19,20,21,24,25

102-12

External initiatives

p10,14,20,21,22,25,26,28

102-13

Memberships of associations

p20,21,22,25,26

Statement from the senior decision-maker

p4,5

2. Strategy 102-14

3. Ethics and integrity 102-16

Values, principles, standards and norms of behavior

p5

Governance structure

p2,3,18

4. Governance 102-18

5. Stakeholders engagement 102-40

List of stakeholder groups

p12

102-41

Collective bargaining agreements

p13

102-42

Identifying and selecting stakeholders

p12

102-43

Approach to stakeholder engagement

p12

102-44

Key topics and concerns raised

p8,12,14,16,17,19,21,22,25,26

6. Reporting practice 102-45

Entities included in the consolidated financial statements

p2,3

102-46

Defining report content and topic boundaries

p8,9,10

102-47

List of material topics

p5,9

102-48

Restatements of information

/

102-49

Changes in reporting

p2,3

102-50

Reporting period

p2

102-51

Date of most recent report

p2

102-52

Reporting cycle

p2

102-53

Contact point for questions regarding the report

Backcover

102-54

Claims of reporting in accordance with the GRI-standards

p2

102-55

GRI content index

p34

102-56

External assurance

/

33


G4 SPECIFIC STANDARD DISCLOSURES

pagina

Economic Economic performance 201-1

Direct economic value generated and distributed

p6

Environmental Energy 103

Management approach

p31

302-3

Energy intensity

p32

Water 103

Management approach

p31

*

Water consumption per ton

p32

Biodiversity

34

103

Management approach

p22,23

304-3

Habitats protected or restored

p22,23

Effluents and waste 103

Management approach

p31

Supplier Environmental Assessment 103

Management approach

p26

308-2

Negative environmental impacts in the supply chain and actions taken

p20,21,25,26

Social Occupational health and safety 103

Management approach

p15

403-2

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

p15

Training and education 103

Management approach

p16,17

404-1

Average hours of training per year per employee

p16

Diversity and equal opportunity 103

Management approach

p12,13,18

405-1

Diversity of governance bodies and employees

p13,18

Human rights assessment 103

Management approach

p19,20,21,25

412-1

Operations that have been subject to human rights reviews or impact assessments

p20,21,25

Supplier Social Assessment 103

Management approach

p19,20,21,25

414-2

Negative social impacts in the supply chain and actions taken

p20,21,25

Customer health and safety 103

Management approach

p19,20,21,25

416-1

Assessment of the health and safety impacts of product and service categories

p20,21,25


CONTINUING OUR SUSTAINABILITY EFFORTS 2018-2020 PURE RELATIONS

PURE COMMITMENT

Our stakeholder relationships are built on transparency, respect and living up to our promises.

We work only with the best seafood, whether it concerns wild catch or aquaculture, and we do this in a sustainable and responsible way. It is our aim to buy our total volume from GSFI suppliers.

Good people are hard to find. That is why Shore is committed to further maximizing its employee loyalty. We will: • further enhance our safety performance • intensify training efforts, continue to invest in the improvement of the skills and capabilities of our employees • further roll out talent management

PURE PRODUCTS We offer nothing less than good, safe, honest and authentic seafood, and have the organization in place to achieve just that. We continuously want to improve in: • quality management: prepared for unannounced (IFS/BRC/customer) audits • introduce organic products in foodservice • single quality approach for all Shore plants • knowledge sharing • enlarge our sourcing base

We jointly invest with our suppliers to get product quality and social conditions at a top level. In the coming years we will further invest in these improvement programs. Through the Pure Shrimp Initiative, we initiate aquaculture and fishery improvement projects enabling us to develop social, environmental and sustainable structures throughout the entire supply chain.

PURE CRAFTSMANSHIP

We are committed to delivering tempting tastes and textures through the most sustainable processes. We invest in: • operational excellence in all Shore plants • energy-efficiency We aim to optimize logistics

35


Ankerstraat 2 8400 - Oostende Belgium www.shore.eu T. +32 (0)59 32 28 68

CSR expertise and guidance Š slidingdoors / Lay-out @ Vanden Broele Productions

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Shore

Profile for Shore - leading in sustainable seafood

Shore nv - Sustainability report 2018  

The sustainability report of Shore nv

Shore nv - Sustainability report 2018  

The sustainability report of Shore nv

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