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Sustainability

report
September 2014

By

Opening
new paths
for a
sustainable
future

The Sustainability Pathfinder program is designed to express


Naturexs ability to explore new and sustainable roads without
applying a rigid model. Our paths are not mapped; theyre made
by listening to local people and understanding the particularities of
an environment. Building a path implies relying on experience and
respecting the natural contours of the landscape. Throughout the
various departments of our company, we are constantly searching
for better ways of acting with respect to the earth and its people.
Our Pathfinder program aims to provide a rich source of ideas and
inspiration for combining economic success with environmental
protection and social responsibility. It reflects our continuous drive to
go one step further. This is what we stand for and how we behave
as a company. These values form the basis of our behavior towards
employees, suppliers, customers and shareholders.

At Naturex, economic
performance and
SUSTAINABILITY fit
seamlessly together to
drive growth and build a
better future.
Thierry Lambert
President and CEO

EDitoRial

From the very beginning, Naturex has always been sensitive to a sustainable development approach aimed at
reconciling environmental responsibility, economic prosperity, and social engagement. A true link between
man and nature, sustainable development is at the core of our business. Shaping our daily activities,
it has become a value shared by all stakeholders and constitutes a driver for continuous growth.
Sustainable development projects are illustrated by concrete examples around the world, both in
our factories and in the remote locations where we source our raw materials.
Naturex has decided to reinforce and structure its sustainable development projects. In
September 2013, a Sustainability Committee was created. The Committee brings
together a multidisciplinary team of 6 people with the goal of launching, monitoring
and coordinating new projects with ongoing actions. Chris Kilham, ethnobotanist,
has been named committee ambassador and plays a decisive role within this
strategy.
Through this report, we wish to highlight actions that are particularly
emblematic of our Sustainability Pathfinder program. Structured around
4 pillars: sourcing, operations, people and innovation the report
paves the way to the future and allows us to formalize our ambitions
for the coming years.
Serge Sabrier
President of the Sustainability Committee

On the road
to gather rosemary
in the Atlas Mountains

Stephanie P uel

Business Unit Director Per

sonal Care

C hstr, SisustaKinilabhilitaymAmbassador

Ethnobotani

on
Nicl QuaolalitysAssSuroanucecDhirector

G loba

The members
of the sustainability commitee

Serge Sabrier

O livier Gal lard

Chief Procurement er,


President of the SustainabiliOffic
t y Committee

Group Envir on

mental, Healt h
&S

ic
NnoicmyolaDepsartmJeengt Mouanager

Agro

afet y C oordinat

or

ABOUT NATUREX

Content

10

the 4 pillars

12

Sourcing

14

operations

16

people

18

innovation

20

Focus on rosemary

Sustainability Report 2013

1992

1,600
employees
all over the world

Date of creation

Global
leader

in specialty plant-based
natural ingredients

strategic markets

Purchasing
offices

> 320 M
Annual sales in 2013

25

sales offices

About
naturex
Naturex is the global leader in specialty plant-based natural ingredients.
Through its dedicated business units, the group addresses the
specific needs of 3 strategic markets: Food & Beverage, Nutrition
& Health, and Personal Care. The company offers its customers
a full array of high quality ingredients, responsibly sourced from
nature for food, pharmaceutical, nutraceutical and cosmetic
applications.
By sourcing raw materials from all over the world and
developing innovative ingredients that combine performance
with sustainability, Naturex has succeeded in shaping its
business around practices which respect the world and its
people. In order to further ongoing efforts in this area, the

16

Manufacturing
sites

group has implemented a comprehensive program to


define and expand sustainable practices.
Thanks to its Sustainability Pathfinder program,
Naturex has set the basis of its philosophy. Naturex is
engaging in this initiative to ensure that the company
is operating according to policies and practices that
support a healthy environment, while enhancing the
lives of its employees and of the people from whom
the company derives natural resources.

10

Sustainability Report 2013

The pat h begins

wit

h res
ponsibl
e sourcing

The 4
pillars
Sustainability touches every aspect of Naturex and its
operations. We define sustainability in a way that brings
responsibility and accountability into every activity and
process. Accordingly, Naturex is commited to implementing
practices for integrating sustainability and social responsibility
throughout its overall organization. These actions are
structured around 4 pilliars: sourcing, operations, people and
innovation.

11

Sourcing
Proximity
quality
respect

People

Sustainability at every step

Operations
Pragmatism
Efficiency
Prevention

s
e
u
l
a
v
n
a
m
u
h
n
Relying o

Integrity
Sharing
Education

Crea
tive w
ays of
thinking
across the cha
in

Innovation
Forwardthinking
client-driven
excellence

12

Sustainability Report 2013

Sourcing
At Naturex, sourcing and proximity go hand-in-hand. Located throughout 9
strategic geographical areas, our dedicated agronomists meet regularly with
local actors. Our suppliers are true partners; their work forms an integral part of a
comprehensive approach to addressing the needs of our customers.

The path begins


with responsible sourcing
Because raw materials are the foundation of our business, we have paid
careful attention to finding ways to honor and preserve natures wealth.
Beyond the technical support they offer to local producers and growers,
our agronomists are also involved in continuously improving methods
and controlling the climatic, logistical and environmental risks associated
with raw materials.
The principle of responsible sourcing also resides in respecting
people and the earth. Naturex pays its partners fairly and is
committed to promoting resource conservation by encouraging
programs that protect biodiversity. Naturex selects and audits
its partners on the basis of good agricultural and collection
practices (GACP).

Local devils claw


collector in Namibia

13

Proximity

Every single day, at least one of our purchasers visits a supplier,


totaling up to 462 visits in 2013
To go deeper in this relationship, our Ivory Coast purchasing office is organized with
several collection stations across the country in which permanent workers and
womens cooperatives process Katemfe, a wild fruit famous for its powerful
sweetness profile. This proximity with local collectors allows us to ensure
the constant quality of our raw material and its preservation thanks to the
rotation of collection areas.

Quality

A laboratory dedicated to stringent quality for our


sourcing in China
The Chinese purchasing office has been fully operational since 2008 with eight
people dedicated to sourcing and quality of raw materials coming from China, Japan
and Korea. To increase efficiency in the selection, the purchasing office is fully equipped
with its own quality control tools like HPTLC, HPLC, UV spectrometer, GCMS, PPSL and
extraction pilot. 1,700 sample analyses are performed each year.

Respect

Precision farming for a better environment


In Northern Europe, in accordance with GACP principles, Naturex has selected growers that have
developed sophisticated agricultural methods for valerian. Guided by GPS, the tractor can follow a
determined trajectory with a precision of 1 cm when planting. This pioneering method optimizes the
distribution of plants in the field, improves labor efficacy and working conditions, and contributes to

Valerian
planting
in Northern
Europe

reducing the use of herbicides by 30% or more when combined with mechanical weeding.

Perspectives

2014
Receive UEBT Trading Member status
for Personal Care Business Unit
Have at least 10 supplementary Raw
Material Supply-Chains qualified under
our Sustainability Pathfinder approach

2017
Have 50% of our key
suppliers compliant
with our Sustainability
Pathfinder referential and
100% by the end of 2020

14

Sustainability Report 2013

Operations
Naturex combines industrial efficiency with respect for the environment
and employees. The group ensures a safe and healthy workplace and
preserves the resources necessary to the proper functioning of its
factories.

Sustainability
at every step
By limiting energy and water consumption and by improving the
efficiency of extraction, the group is part of a virtuous circle that
benefits the entire chain.
Designing an industrial network to be sustainable also means
careful planning for waste management. Naturex strives to minimize
the impact of its plants on the surrounding environment. To do so,
the group has implemented an environmental management system
addressing water, air, soil, and waste based on ISO 14001 standards.
The latest regulatory developments and strictest quality certifications are
further illustrated by concrete measures that promote the production of quality
ingredients ensuring the protection of consumer health and product safety.

Extraction process
in Avignon

15

Pragmatism

100% of plant by-products are reused as biofuel in Morocco


In Morocco the apricot kernels and other plant by-products derived from the extraction
process are reused in a sustainable manner. The waste is sold to a 14001 certified building
material plant where it is used as an alternative to coal for fueling the factory.

Efficiency

150 000

-40%

100 000

a 40% reduction in water


consumption

Water treatment station


blends perfectly in
Avignons landscape

The installation of two cooling

50 000

towers and a refrigerated unit


0
June/Dec. 2012

June/Dec. 2013

Water used (in m )


3

in Valencia (Spain) has allowed


the factory to reduce its water
consumption by 40% in 2013,
saving 50,000 m3 of water.

Prevention

water treatment station in Avignon


Part of a global water management program, Avignon inaugurated its new biological water
treatment plant in 2013. A true technical challenge, the basins, the utility rooms, and the laboratories
are completely underground. With its green roof, the facility is seamlessly integrated into the
surrounding landscape. This equipment represents an investment of 1.5 million. The factory is also
ISO 14001 certified, as is its counterpart in the United Kingdom.

2014
Replace all R22 cooling fluid in all
factories using this gas in order
to reduce the impact on global
warming

Perspectives

2016
Decrease overall water consumption by
10% assuming the same level of activity
Maintain the electricity efficiency ratio
at 1 kWh/kg of finished products and
reduce the overall consumption of fossil
fuel by 5%
Strengthen the waste management plan
by increasing waste reuse and recycling
from 84% to 88% and by reducing
landfill waste from 8% to 5%, assuming
the same level of activity

Maintain GMP or Food


Safety certifications (GFSI,
NSF, GMP pharma) at all of
our sites that ship products
to clients to ensure the
health and safety of
consumers

16

Sustainability Report 2013

People
The group has established a human resource policy that fully
respects human rights and international labor conventions. This
policy promotes diversity and equal opportunity and fights
corruption. Conducted with transparency and integrity, the policy
seeks to maximize the potential of each person while honoring
commitments formalized by ethical labels such as the United
Nations Global Compact and Sedex. Ever vigilant to the
safety and health of its employees, the group has developed
several health and safety management systems based on
OHSAS 18001 standards.

Relying on human values


Naturexs social responsibility extends far beyond the
institutional sphere. Attentive to living conditions in the
communities where we conduct our business, the NaturexJacques Dikansky Foundation supports numerous initiatives
to promote health, environment, education, and economic
development. Because success is always sweeter when
shared, Naturex has recently implemented a system for
distributing profits throughout the value chain in all of its major
business channels.
Transmission of knowledge and education are strong values for
New Jersey
production team

the company. This is manifested largely through its investment in


employee training plans and through the support of educational
programs in local communities.

17

Integrity

Responsible and ethical business practices recognized by third party organization


Part of a global commitment for Labor Standards, Health & Safety, Environment, and Business Ethics, we have
deployed a Sedex program in our factories. Avignon is the latest plant to be audited by a third party organization.
With 40 interviews of employees conducted, the auditors identified numerous strengths, including the high level of
involvement of employees, pride in being part of the Naturex story and the positive social climate.

Sharing

Ucayali River
kids benefit
from free
dental care

A purchasing decision with


a positive direct impact on
environment and populations
Naturex is committed to donating 1% of the sales generated by NAT
oleisTM, its new range of oils and butters for cosmetic applications, back
to the planet and communities where the botanical oils are sourced.

Education

500 children learn about dental care along


the Ucayali river

Since 2013, the Naturex Foundation has been supporting the Apus boat project, which
aims to bring free dentistry to the Shipibo an indigenous people living along the Ucayali
River in the Amazon rainforest in Peru. Naturex sources many botanicals in this part of the
world, including Dragons blood, Cats Claw, and Maca. More than 500 children benefit from
dental care and educational sessions about oral hygiene.

Perspectives

2015
Expand the OHSAS 18001
certification to 2 additional
manufacturing sites
Extend Sedex auditing standard
to 7 of our industrial sites

2017
S
 trengthen the career management
process for senior employees and
offer them customized solutions
D
 ouble the number of actions
supported by our Foundation

18

Sustainability Report 2013

Innovation

At Naturex, innovation is present at all levels. Resolutely oriented toward the future,
the group encourages its employees to be the driving force behind the design
of innovative ideas that respect the principles of sustainable development
and thus open new avenues in various fields such as science, customer
experience, finance, supply, industry expertise, and mobility.

Creative ways of thinking


across the chain
In addition to creating added value for our products and
services, we believe that responsible and sustainable
innovation supports the expansion of our company and
promotes growth over the long term.
These ideas translate into concrete actions on the
ground. Transforming ideas into reality reflects the
shared ambition of Naturexs employees. Driven
by excellence, the group pushes the boundaries
of innovation while respecting the principles of
sustainability.

R&D laboratories

19

Forward thinking

ORTESA investigates eco-friendly extraction in


partnership with the University of Avignon
In 2013, Naturex inaugurated ORTESA, the center of
excellence for research and industrial innovation that
aims to develop better science for botanical and ecofriendly extraction. Led in partnership with the University
of Avignon, the research laboratory incorporates
sustainability in all the steps that are critical for extraction:
choice of the solvent or technologies, utilization of byproducts, reduction of unitary operations, and limitation
of chemical alteration of botanical extracts.

Client driven

80% less paper distributed during tradeshows


The sales team has adopted a new approach for presenting Naturexs
portfolio. Tablets have replaced brochures and reduced the number
of brochures distributed during trade shows by 80%. Thanks to this new
technology, our clients receive a personalized email with relevant products
directly in their mailbox.

Excellence

New processes for higher efficiency


In the Polish factory, we have replaced the evaporation process which consumed a lot of
fuel, by a proprietary process. The pectin manufacturing process now requires less energy.

2014
R
 einforce our commitment to
eco-friendly extraction by signing
a charter and a guide to good
practices as part of the ORTESA
program

Perspectives

2015

NAT market
and original concept
demonstrations at Food
Ingredients Europe

2018

Revive inspiring botanicals that were Launch a research program to


traditionally used in Provence, in
develop the use of African flora in
collaboration with the natural regional partnership with local universities,
park of Luberon
populations and companies

20

Sustainability Report 2013

Focus
ON Rosemary
At Naturex, we have been producing natural rosemary
extracts for 20 years. Join us for an inside look at our
rosemary expertise: from sourcing to market.

21

JOIN US ON
OUR PATH TO A
BETTER FUTURE
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