Food Union Holding (CY) Company Limited
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:0.169 kg CO2e/liter (Latvia, Estonia, Denmark)
Renewable Energy Share:100% (Estonia), 39% (Norway)
Total Energy Consumption:1.023 kWh/liter (Latvia, Estonia, Norway, Denmark)
ESG Focus Areas
- Improving well-being
- Reducing environmental impact
- Bolstering fair social system
Environmental Achievements
- Average emission intensity of 0.169 kg CO2/liter (Latvia, Estonia, and Denmark only)
- Average energy intensity from production of 1.023 kWh/liter (Latvia, Estonia, Norway, and Denmark only)
- 100% renewable energy used in Estonia and 39% in Norway
- All dairy and ice cream secondary packaging switched to sustainable materials
Social Achievements
- Developed 66 novel products, 32 aimed at alternative diets, and 68 with healthier benefits
- Average annual attrition rate of part-time/seasonal employees of 26.7%
- Total work-related injuries across all business units: 31
- 54% men and 46% women across senior/executive management
Governance Achievements
- Consequent planning and corporate governance routine established
- Transparent and comprehensive two-sided communication between management and Supervisory Board
- Key values defined and developed by executive management team, approved by the Board, and communicated throughout Business Units
Climate Goals & Targets
Medium-term Goals:
- Review possibility to switch to 100% renewable energy in all business units (2024/2025)
Short-term Goals:
- Improve employee health and safety conditions
- Reduce work-related injury cases and annual attrition rate
Environmental Challenges
- Record high input prices and general market decline
- Inflation and war in Ukraine
- Input price volatility
Mitigation Strategies
- Negotiated price adjustments with retailers
- Implemented dual procurement strategy
- Identified and implemented various efficiency improvements, including managerial structure optimization and process streamlining
- Built up safety stocks of butter
- Strategic investments in renewable energy and forward hedging contracts
- Installation of alternative heating solutions in Estonia and Latvia
- Automation of packaging lines in Latvia
- Expansion of ice cream stick production capacity in Denmark
- Changes at the senior management level to adapt to shifting dynamics of the food retail landscape
Supply Chain Management
Responsible Procurement
- Sourcing all goods via GFSI-recognized suppliers
- Sourcing fresh milk directly from farmers in Latvia
- Sourcing milk powder from long-term trusted partners in other countries
- Rainforest Alliance (RA/UTZ) and Roundtable on Sustainable Palm Oil (RSPO) certifications in some factories
- Local certification for organic products in Denmark
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Sustainable Development Goals
Certifications: FSSC 22000, ISO 9001 (Latvia), IFS (Denmark, Romania), BRC (Latvia, Norway, Estonia), ISO 14001 (Latvia)
Sustainable Products & Innovation
- Vegan sorbets
- Zero-fat products
- Products with added vitamins
- Lactose-free products
- Probiotic fermented dairy products