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The Ethico Report 2012
Efico Group
based on the Communication On Progress
of the United Nations Global Compact
COP Year 2012
Antwerp, March 2013
SANTOS
GUATEMALACITY
KURU
ADDISABEBA
PORRENTRUY
ANTWERPHAMBURG
ZEEBRUGGE
EVOLUTION, PROGRESS, SOLUTIONS & INNOVATION FOR A SUSTAINABLE GREEN COFFEE SUPPLY CHAINEFICO GROUP SUPPORTS THE UN GLOBAL COMPACT PRINCIPLES SINCE 2003
This is our Communication on Progress in implementing the principles of the United Nations Global Compact.
We welcome feedback on its contents.
“2012 was a complicated
but interesting year.”
A chievements in producing countries?
• we submitted a supplier to our UNGC principals audit, • promoted production of first co-developed Climate Friendly Coffee, • supported best practices, community empower-ment, quality improvements, waste management, • provided safe drinking water to farmers’ families via women’s associations, • collaborated closely with the expansion of our offi-ces abroad, • visited producers to strengthen long-term relationships.
FOREWORD
THE ANNUAL COMMUNI-CATION OF THE ETHICO REPORT IS BASED ON THE COMMUN I CAT ION ON
PROGRESS (COP) REQUESTS OF THE UNITED NATIONS GLOBAL COMPACT (UNGC) .IT IS A SUMMARY AND A DEMON-STRATION OF THE EFICO GROUP’S COMMITMENT TO THE UNITED NATIONS GLOBAL COMPACT AND ITS PRINCIPLES.
Since 2003, as a Global Compact signatory, Efico is committed to publicly communicate annually about its annual progress made in implementing the ten principles aiming to stimulate and enhance sustainability and transparency towards internal and external stakeholders.
SHARING COMMITMENT
Efico shares its UNGC commit-ment in all communication mate-rial and during all face-to-face meetings. We received increa-singly positive remarks about our membership. Within the interna-tional and business-to-business context the UNGC-awareness is significantly growing.
In Belgium, as an Advisor of the local network, we follow the acti-vities to obtain more visibility for the UNGC initiative. UNGC AWARENESS
Recent new members, in the busi-ness-to-consumer environment are providing a wider coverage.
Time has come for effectiveness of the organization and consolida-tion of the structure. Sustainability is part of the Group’s DNA. The ambitious sustainable approach embedded in each division of our Group is reflected throughout this report. All new activities are deve-loped within the same spirit.
As part of the learning process, we proposed a GC ACTIVE LEVEL, as detailed in the UNGC require-ments report.
IMPROVING REPORTING
For this ETHICO REPORT 2012, we followed UNGC requirements expressed dur ing the work-shop organized by the Belgium Network. For the first time, the printed report was distributed at several meetings.
Highly interested readers appre-ciated its transparency and the description of our actions on each principle. For this new edition we follow the specific webinar which we recommend: www.youtube.com/ watch?v=mGPBU9SmlpY
REPORTING PERIOD
This report contains the Efico Group’s main implemented sus-tainable activities achieved by each company in 2012.
www.efico.com www.seabridge.eu www.eficofoundation.org
In Switzerland, where we are increasingly active, we also note that the UNGC-awareness is rising.
All of this contributes to grea-ter recognition of the UNGC-framework, demonstrating more easily our corporate engage-ment. We observe that by exten-ding ‘best’ and ‘responsible’ business practices, sustainable entrepreneurship is now incre-asingly part of the corporate mainstream.
SCOPE OF REPORTING Being a member for nine years, our earlier editions contained a lot of information about the UNGC principles on our strategies and operations.
Description of our ACTIVITIES, in the COP 2010, essentially remained the same - www.efico.com/un-global-compact
Efico business model based on the green coffee supply chain management in the 2011 edition, the ETHICO REPORT.
This new ETHICO REPORT 2012 issue focuses on the new structure of the Efico Group.
2011 Report: progress on each UNGC
principle in all supply chain steps.
Statement of continued support 2012 Ongoing Commitment by Patrick F. InstalléCEO Efico Group
Dear partner, Dear stakeholder,
Nine years already... we are a UNGC member, sharing sustainability experience demonstrating that a voluntary initiative works. A strong high level commitment is needed to make it successful. It needs to be integrated in every step. Therefore you need dedication, clear focus and - above all - the will to stay focused.
Before any assessment, I remind you of the difficult onset of ‘sustainability’ in the view of the economic context of 2012.Last year was a huge financial challenge to all European companies. Our sector didn’t stay at bay: most of our customers and partners were concerned. Paradoxically, even in this difficult climate, it becomes clear that the universal principles are now widely recognized as to human rights, labour, environment and anti-corruption. Today, many companies and organizations around the world have started the hefty journey of complying with these prin-ciples and integrating them into their own strategies and operations.
Entrepreneurs intuitively apprehend its business case as being aspiring for sustainability. How far they have evolved in that journey is not the question, as this continuous process of improvements will lead them on the right track. Global awareness has already risen to some extent.
We are sure that the development of adequate tools and technology provides instruments to boost sustainability as a mainstream concept. The green coffee sector is a test case for other commodities. For instance, Efico was a founding member of the sustainable 4C initiative. The Group also remains member of the Trade and Industry Chamber and its Technical Committee.
In 2012, Efico’s sustainable journey intensified. The reinforcement of good practices was very enriching...
in consuming countries? • Seabridge passed the Ethical Performance SMETA Audit for Responsible Sourcing conform the ISO 26000, • creation of a new HR department to facilitate smooth, safe and secure relations within the Group, • internal and external tools to inform stakeholders and improve their satisfaction and knowledge,• Efico managed to maintain its ISO 9001 (Quality Management) certifi-cate. Seabridge obtained both ISO certifications 9001 and 22000 Food Safety Management & Traceability, • recognition of Efico and Seabridge by the EU as an Authorized Economic Operator - the AEO certificate provides customers simplified processing and operational excellence in logistics, supply chain and freight management,• strenghtening of the environmental performance,• consolidation of all our partnerships.
It is our ambition to inspire you with our sustainable business model.Patrick F. Installé
CEO Efico Group2 3
CreationCoffee TradingCompanyFamily Wuyts &Installé
1926 1990
> Management Duo Team: Patrick F. Installé & Michel Germanès
E - EmileF - François I - Installé & CO - Company
Trading Volume
+ 14,000 MTeq. 235,000 bags
2003
Member of UN Global Compact
> 2004Germany
New Offices
2005
> Out- sourcing Stock & Logistics
Efico Foundation
> 2006Switzerland
2009
Seabridge
> 2007Guatemala
> 2010Ethiopia
2011
Binary Services
> 2011Brazil
+ 60,000 MTeq. 1,000,000 bags
2013
Constantia Tradingbecomes Efico SA (CH)Group HQ
Efico developed a group of companies with added value for the trading activities. All those companies contribute to strengthen its commitment and reflect its global engagement.
1GROUP’S CORPORATEENGAGEMENT
Efico is a Group of companies established in 1926, active in green coffee and cocoa trading, coffee quality, sustainable logis-tics, IT-service, multimedia, and sustainable development.
As a Group with family values we strive for excellence following highest Quality and Food Safety, Traceability and Sustainability standards. These requirements are implemented through an integrated management system.
It is compliant with internatio-nal standards and legislations. Continuous improvement of our performance is key to deliver qualitative, safe and traceable products and services.
The Efico Group aims to differen-tiate its business through inno-vation, challenges, optimizing, sharing knowledge and capa-bilities, creativity and exchan-ging ideas with all stakeholders.
The United Nations Global Compact’s ten basic princi-ples are the cornerstones of our Group’s sustainable entrepre-neurship and ethical behavior. We are active in a socially, eco-
nomically and environmen-tally responsible manner. Being demanding with high require-ments at all stages of our coffee supply chain will contribute to sustainable improvement of our sectors.
A long-term approach combined with expertise in the coffee gro-wing community, trading, logistic services and IT-solutions adds to the Group’s sustainable coffee and cocoa supply chain.
Within this chain the Efico Group provides tailor-made solutions “with a personal touch” via inno-vation and partnerships based on synergies and mutual trust.
Our vision serves all activities. It describes what we need to fulfill our commitment to provide inte-grated, sustainable and secured supply chain solutions.
IMPLEMENTATION:
• Enforcing activities, knowledge and contribution in coffee produ-cing countries via our local offices
• Supporting innovative, sustai-nable multi-stakeholder projects through the Efico Foundation; agricultural training, advice, education programs, infrastruc-tures, to empower rural growing communities
• Personalizing business relations and obtaining high customer satisfaction
• Providing high-qualitative, traceable and sustainable logis-tic services for the European coffee market
• Ensuring a safe, user-friendly and empowering work environ-ment for its personnel
• Openly communicating with its stakeholders and engaging them to share the same values
• Developing high-end IT solutions
By implementing this, challenges become opportunities for coffee and cocoa producing regions up to the consumers.
3 COMMITMENT
4 VISION
4 5
5 VALUES
ORGANIZATIONAL LEVELRESPONSIBLE
ENTREPRENEURSHIP
We are concerned by the evolu-tion of compliance screenings.
Reliable: our legacy is acting with highest values and principles: a strong foundation for our future.
Transparency: we continuously improve our performances with measurable and economically responsible objectives, as well as our Corporate Policy.
Stimulate Partnership: requires inspirational and highly effective teamwork. Our winning culture highlights our attitude to share added value.
Tailor-Made Service: flexibility meets our clients’ requirements with excellence and a ‘personal touch’.
Accountability: wil l ingness to endorse our responsibilities, awa-reness of collective responsibility
towards customers, colleagues, communities and all stakeholders to maximize long-term return.
Embedded Sustainability: we attempt to leverage worldwide global issues to ensure profit, sus-tainable growth and empower-ment of our sustainable and ethi-cal supply chain.
We reduce any negative environ-mental impact as much as possi-ble. The Group is conscious of its influence on the environment.
It is proactively looking for soluti-ons for waste management and reducing CO2 emission levels in the supply chain.
New ideas are nurtured throug-hout our global operations.
Those values shape the ethical personality of our Group.
They guide and determine the way we trade, the services, the products and the support we pro-vide to all our stakeholders.
Our corporate values describe what we strive for and how we build an ethical climate.
They are inspired by the United Nat ions Global Compact framework.
INDIVIDUAL LEVEL ETHICAL BEHAVIOUR
Integrity Tailor-Made
Passion Respect
Open Minded Values
Ensure Quality
= IMPROVE
The sum of the values is the ethical foundation for better
day-to-day operations, with a spe-cific focus on individual
improvements.
Our common goal: implementing good gover-nance to strengthen all stakeholders.
Our ‘Best Corporate Governance Practices’ are based on ethics and transparency.
Also on knowledge and skills exchange and skills in a macro-economic res-ponsible model.
Improving benefits, effi-ciency and economic growth.
As coffee is the world’s second traded commodity -after petro-leum - our trading practices have solid impact on local level.
Besides the usual trade practices, we made improvements in the Ethiopian coffee supply chain in 2012. More details on page 13.Added value is based on experi-ences in the field and abroad.
Our capabilities allow us to col-laborate effectively with our local privileged partner.
Our model hasn’t changed. The analysis of the end-to-end supply chain is more than ever valid to identify quality improvements, services and environmental impact to be optimized across all stages of the supply chain.
THE ETHICO REPORT 2011 detailed the EFICO busi-ness model based on the green coffee supply chain
management.
Achievements 2012Strategic responsible sourcing continued and supplier’s enga-gement was analyzed through our UNGC Supplier Audit.
6 SUPPLY CHAIN MANAGEMENT
6 7
HUMAN RIGHTS
principles based on the Universal
Declaration
PRINCIPLE 1: Support and respect
the protection of human rights
PRINCIPLE 2: Ensure no complicit in human
rights abuses
Acting with due attention to avoid infringing on the rights of others, and treat any inconvenience that
would be caused
Ensuring a safe, well-organized,
user-friendly, empoweringwork environment striving to generate added value
through strategiclong-term partnership
ENVIRONMENT
principles derived from
the Rio Declaration
PRINCIPLE 7: Precautionary approach
to environmental challenges
PRINCIPLE 8: Promote greater
environmental responsibility
PRINCIPLE 9: Development and diffusionof environmentally friendly
technologies
Supporting sustainable agriculture practices, carbon footprint assessment, green energy
production and efficiency, train transport, waste management,
sales and communication of sustainable products
ANTI-CORRUPTION
principlebased on the UN Convention
against Corruption
In doing so we provide an inte-grated business model with sustai-nable services and products.
Network partnerships and trans-port are optimized, train transport promoted, waste reduced, recy-cling increased, re-usable packa-ging/palets are encouraged.
All measurements are detailed on page 25.
High performance can be delive-red by leveraging our sustainable supply chain.
As detailed in the article ‘The European UN G l o b a l Co m p a ct Companies Towards
Rio+, Best Practices Collection’, we developed our sustainable concept throughout the green coffee supply chain.
With those tools we build innova-tive models that will benefit soci-ety on the long run.
7 CO2 REDUCTION
As an interactive department, it will keep our teams informed and interconnected around the stra-tegic goals of the organization.
The HR business plan focuses on the uniformity of measures used for continuous improvement.
Job descriptions were refined in v iew of management performance.
We also intend to develop a com-plete training program.
We created a new HR department this year. Its contribution wil l be immense.
Building an effective policy framework to support the cor-porate sustainability objectives is key to all our companies.
8 PROFESSIONAL HUMAN RESOURCES - HR - MANAGEMENT
LABOUR
principles resulting from
the internationalLabour organization’s
Declaration
EMBEDDING OF THE UNGC PRINCIPLES THROUGHOUT EFICO’S GROUP SUPPLY CHAIN
8 9
PRINCIPLE 3: Freedom of association
and right to collective bargaining
PRINCIPLE 4: Elimination of forced
and compulsory labour
PRINCIPLE 5: Effective abolitions of child
labour
PRINCIPLE 6: Elimination of discrimination
in respect of employment and occupation
PRINCIPLE 10: Prec Businesses should work
againstcorruption in all its forms,
including extortion and bribery
Respect of all engagements, transparent company, long-term
collaboration with reliable partners, guidelines for investments
in producing countries combatting illicit drug trafficking and
money laundering
Our team of multil in-gual and experienced traders continues to uphold the values of a
longstanding family business.
The traders keep up minute by minute with the London and New York commodity futures and world currency markets, offering clients the best price at the right time.
Aside from top quality coffee, commodity market analysis and hedging assistance, we have solid backgrounds in the sustaina-ble programs.
We guide our partners through the process of becoming a sustai-nable actor in the coffee sector.
Efico shares this sustainable know-how with its stakeholders and 450 of its European coffee roasting companies.
demand, speculation being very present, the need for a quick res-ponse is a must. Besides the local commercial support those offices also provide performed quality controls, value logistics flows, sus-tainable solutions and any pro-ject support.
IMPORTING FROM RURALCOFFEE GROWING AREAS
Annual export earnings from green coffee usually represent the principal income for the gro-wing regions, since it is the world’s second valuable traded com-modity. Rural development is a strategy improving the economic and social life of the rural commu-nities. Green coffee export has a significant impact on the local economy and the well-being of those communities. It provides direct support to the livelihoods of 25 million growers, and indirectly about 100 million people around
PRACTICAL RESPONSIBLE SOURCING
We work closely together with our offices in producing coun-tries and our reliable suppliers. Our offices are located in Brazil, Guatemala and Ethiopia, where we can count on a privileged company-partner KURU.
Our long-term relationships in coffee producing countries allow us to pinpoint excellent coffee all over the world. Our offices deliver immense support to our daily activities selecting all those involved in the coffee supply chain, forging reliable long-term partnerships, responding to any customer’s requirement. All of them provide us with a direct field report.
In a volatile commodity market where fluctuations are not only determined by offer and
the world. Our local offices have a better view on the way the coffee is produced. Aside, we created two specific and dedicated tools to evaluate the local situation: UNGC SOURCING SUPPLIERS AUDIT and the EFICO FOUNDATION.
ASSESSMENTS INGROWING REGIONS
Minimum one supplier per year is audited against the UNGC principles. In 2012 the green coffee expor-ter Co-Honducafé was audited in Honduras. Recommendations have been provided to the management encourag ing improvements in sustainable development.
Efico Foundation projects are detailed on page 20.
Our experience coupled with these two tools allow us to get a
In 2013, Efico headquarters will move to Porrentruy in Switzerland. Efico Agency will be the Belgian agent.
QUALITY & FOOD SAFETY,TRACEABILITY
Through Efico’s standardized coffee laboratories, over 280 varieties of coffee beans and blends are tested and selected, samples analyzed, comparing physical and sensorial parame-ters according to international standards. Cupping samples are roasted in the traditional or the high-tech way.
All traders take part in the daily cupping sessions before deciding whether or not to buy and sell a particular coffee.
Since 2003, Efico is ISO 9001 qua-lity management certified.
real picture and impression of the situation of our coffee suppliers.
Some high-risk regions/countries are avoided because we can not get a clear image of what is hap-pening, or we don’t risk to work in unstable economies.
Very realistic, we know that the root causes of child labor is poverty. By encouraging sustai-nable/verified programs and pro-jects we provide more education possiblities in those areas.
INTERNATIONAL PLAYER
In Europe, Efico has trading offi-ces in Belgium, Germany and Switzerland. Efico shares sustai-nable know-how with its stakehol-ders and circa 450 of its European coffee roasting companies. From the very first bag to the 300-bag container, our flexible sales facili-ties can respond to any demand.
“Efico sources its commodities from 36 different countries around the world. We can offer a large variety of flavors and aromas to meet each coffee roasters’ expectations.”
Raf Vermeire, Trade Officer
EFICO
TRADING GREEN COFFEE AND COCOA WITH A PERSONAL TOUCH SINCE 1926 AS AN ACTOR IN THE GREEN COFFEE AND COCOA COMMODITY TRADING
MARKET, WE SOURCE COMMODITIES FROM ALL OVER THE WORLD. OUR FOCUS
LIES ON SOURCING TOP QUALITY CONVENTIONAL AND SUSTAINABLE GREEN
COFFEES.
10 11
ISO certification plays a crucial role in Efico’s Quality & Food Safety policy. The daily commer-cial contact of our trading team directly monitors our continuous customer’s satisfaction.
CLIENT’S SATISFACTION
Customer’s complaints are hand-led case-by-case. Necessary pre-ventive and corrective actions and measures are taken. A close monitoring of the registration of all quality claims guarantees the internal follow-up of all depart-ments involved. This procedure is part of the KPI’s monitoring.
In 2012, with the high price level market fluctuations much more quality claims were registered. Not only the traded volume increase generates more quality claims. Also the continuous pres-sure on prices and the price rise within the commodity market had an impact on the amount of quality claims. It was a rollercoas-ter, with a lot of non-deliveries worldwide.
COMMUNICATIONSUPPORT
A daily digital Coffee Market News bulletin with the latest movements of the market is sent to more than 150 stakeholders, also to be downloaded on:www.efico.com/market-news.
A coffee origin’s library is availa-ble. The full description of every coffee variety acquaints the final consumer with its coffee preferences.
Our trading team can use dif-ferent PowerPoint presentations to present the Group, its green coffee supply chain training, coffee market pricing, climate change issues, the sustainable projects of the Efico Foundation, etc. Tailor-made presentations are provided on demand.
Our Communication Team is also at disposal of customers to sup-port any advertising campaign towards sustainability.
SPECIFIC QUALITYIMPROVEMENTS ON THEETHIOPIAN COFFEE SUPPLYCHAIN
This year, in partnership with KURU, our privileged company-partner in Ethiopia, we initiated a special project to improve the monitoring and performance of the logistic
Michel Germanès, Managing Director, visiting Efico Central America
flow. Green coffee is a very sensi-tive natural product which has to be handled quickly and with a lot of care as from the very first step of the chain.
The total management of the pro-duct flow was examined. Efico appointed a dedicated person to implement this.
“ The supply chain of green coffee
in Ethiopia is very specific and
requires our presence in proximity.
Efico has assigned me in Addis
Ababa since May 2012 to assess
the situation and improve the flow of daily ope-
rations. Thanks to smooth collaboration with our
local partner KURU we make it all work.”
Nicholas Marcet, Trade Officer
12 13
Abdurahman Mahdi, Managing Director Kuru and Nicholas Marcet, Trade Officer, in our office in Addis Ababa, Ethiopia
SEABRIDGE
TAKING CARE OF YOUR COFFEE SEABRIDGE IS A EUROPEAN STATE-OF-THE-ART SUSTAINABLE FACILITY CENTER IN
THE PORT OF ZEEBRUGGE, DEDICATED TO THE STORAGE, QUALITY
ENHANCEMENT AND DISTRIBUTION OF GREEN COFFEE.
“Flexibility and sustainability are essential in state-of-the-art logistics operations” Patrick F. Installé, CEO
A s an independent company within the G roup, Seab r idge shares the same vision
of quality, traceability, tailor-made services and sustainable entrepreneurship.
The 20,000 m2 warehouse distri-butes green coffee throughout Europe by rail, road and sea. Our high-quality standards are reflected in the choice of mate-rials, building concept, material choice, state-of-the-art techno-logy, just-in-time services and an unique track-and-trace system.
Through on-site green energy production of 4,600 photovol-taic panels, recycling waste, on-site rail connection and CO2-reduction, we create a sustaina-ble coffee supply chain.
Bureau Veritas in May 2012. SMETA - SEDEX Members Ethical Trading Audit - is an international guideline for analyzing sustaina-ble and ethical supply chains and the preferred standard used for SEDEX audits. SMETA audit follows the ISO 26000 guidelines on social responsibility, have a common methodology, and are used as the basis for many ethical audits.
SMETA:• A best practice guidance on conducting ethical trade audits• An audit report format and • A corrective action plan format
Seabridge values its customers’ requirements and believes that business is committed to conti-nuous improvement of the ethical performance and responsible practices goes hand in hand with transparency through the provi-sion of data exchange.
ETHICAL AND RESPONSIBLE PRACTICE
Striving for constant quality impro-vements is crucial. Therefore, Seabridge aims to challenge its activities to the highest possible standards. Being demanding at all the stages of our coffee supply chain will contribute to a quali-tative and sustainable improve-ment throughout the sector.
For those reasons, we are con-cerned by the evolution of com-pliance screenings.
On request of one of our custo-mers, Seabridge was pleased to be submitted to an external independent audit. By doing so, the company’s current position on ethical and responsible prac-tices came in to a clear over-view. Seabridge very successfully passed the SMETA Audit by
During the two-day audit colle-agues of different departments were interviewed and business process documents provided.
The auditor concluded that we are strongly engaged for impro-vements in business practices and ethical responsibility in the global green coffee supply chain.
Seabridge became member of SEDEX - www.sedexglobal.com, fully in line with its engagement in terms of innovation, improved supply chain management solu-tions; reducing the risk to protect the company’s and its partners’ reputation.
DOUBLE ISOCERTIFICATIONS
Seabridge obtained both the ISO 9001 - Quality Management System and the ISO 22000 - Food Safety Management System and Traceability - www.seabridge.eu/certifications.
Since 2003, Efico has already been certified by Lloyd’s for the ISO 9001, Management process and CSR - Corporate Social Responsibility and since the second half of 2008, the ISO 22000.
Seabridge has been certified for its own core activity as a separate entity in the Efico Group.
Seabridge can now be confident about all its procedures.
AEO - AUTHORIZED ECONOMIC OPERATOR
Our Group has always worked with the customs’ services, Efico having signed a first MOU in 2003, followed by a MOU on Drug Prevention of Seabridge in 2011.
Thanks to the efforts of our teams we received in September 2012 the status of AEO. This achieve-ment allows us to be a proactive partner in the development of the “Green Trade Lane” which will have a significant advantage for all our partners of the green coffee supply chain in the future.
We were very pleased to announce this event to the press that covered the event - see press release
14 15
Seabr idge has been awar-ded with the “Green Building” certif icate by the European Commission and is also approved by the FASFC - Federal Agency for the Safety of the Food Chain. The HACCP - Hazard Analysis and Critical Control Point - has a solid track record for identifying and preventing contamination to ensure safer food production.
These investments reflect our commitment to conduct our busi-ness efficiently and effectively.
QUALITY LABORATORY EXPERT TEAM
Seabridge harbours a state-of-the-art laboratory offering a cus-tomized analysis of green coffee samples on physical and sensorial aspects.
All green coffees samples are daily tasted following standardi-zed procedures. Automatic sam-pling is made on bag per bag basis and homogenized to get a representative sample.
Our lab team takes great care in individually roasting and cupping of all arrival samples, as well as all offered and pre-shipment sam-ples from producers around the world.
Daily cuppings are organized, registered, the results being reported back to growers, ship-pers and offices completing the purchasing process.
An international team:
IVAN LAMILLA MUNOZ started at the Efico Group at the begin-ning of 2012. Since 1997 he is wor-king in coffee quality control in Colombia. He is an Agronomist Engineer and Q-Grader from the Coffee Quality Institute.
He accepted the challenge to move with his family to another continent, to pursue his career with an international actor based in EU. see press release
BART VAN SANDEN works with the Efico Group since 1998, he was Belgium Champion, in 2008 & 2009, Vice World Champion in 2009 and the Vice Belgium Champion in 2010 of the SCAE Cuptasting.
Our customers consult them at any time in order to discuss a new blend, to improve it and to search for the best or optimal aroma, etc.
Nadine Van Rompay, Kurt Osaer and Patrick F. Installé, receiving the AEO certificate from the Belgium Customs, accompanied by Ir. Joachim Coens, Chairman and Managing Director of the Port Authority Zeebrugge
Besides, our team keeps track of the traceability of all stock-linked samples.
Every sample has been bar-coded and part of the labora-tory inventory. Samples are stored under same temperature and the relative humidity as in storage zone, for two years. This allows our customers to recall samples at any time to eventually control their conformity.
Our laboratory services team: Stéphane Cuchet, Ivan Lamilla Munoz, Loïc Installé and Bart Van Sanden
16 17
Binary Services provides total solutions and sources out services for software, hardware, infrastruc-ture and networking.
SOFTWARE
Microsoft Dynamics NAV as Central ERP System
Scanning software warehouse
HARDWARE
Database server SEABASE
Terminal server SEATERM
Scanning devicesin the warehouse
NETWORKING
All servers secured centralized at the same location
ADDED VALUE
• Professionalism
• Modular capacity
• Personalized services
• Centralization of all data,our four websites and the multi-media division
• Dense network of optical fibres
• Sensitive and active partner insustainable development
Binary Services also provides mul-timedia solutions: website development, copywri-ting, photography and video documentaries.
The team strives for quality, trace-ability and sustainability throug-hout the entire supply chain.
They can assist with any IT imple-mentation project by providing experienced project and pro-gram management capabilities leveraging new methodology.
BINARY SERVICES
PASSION FOR IT, WITH A PERSONAL TOUCH BINARY SERVICES IS AN INDEPENDENT ICT COMPANY WITHIN THE EFICO GROUP
FOUNDED IN JULY 2011, WITH BRANCHES IN SWITZERLAND AND BELGIUM.
DELIVERING HIGHLY PERSONALIZED AND PROFESSIONAL IT DEVELOPMENT AND
ADVICES TO THE EFICO GROUP.
Binary Services provides insight and key guidelines to the whole management process of developing
tailor-made solutions, add-on ser-vices, offering management tools for trading, logistics, finance and reporting.
By responding to requirements from several departments we are making a distinct effort to ensure the maximum efficiency whilst providing and using practical tools:
GREEN IT STRATEGY lower operational and structu-ral cost; by optimal energy utili-zation, cooling capacities and cabling
Binary Services provides holistic approach with software soluti-ons based on Microsoft Dynamics NAV with industry-focused expe-rience for optimization of ware-housing, finance and commodity trading to consolidate all the acti-vities of our Group by offering: • guarantee of top quality• technology with high addedvalue• independent structure • total solution: software, hardware and infrastructure• methodology: “sure step”Microsoft• fast availability of reliable data
International references of the used software: www.microsoft.com/belux/nl/dynamics/success-stories/nav/default.mspx
PURCHASE POLICYassessing the updating of the inventory needs of laptops, desk-tops, printers, hard and soft-ware and also phones when possible from environmentally eco-friendly/sustainablemanufacturers
DATA CENTERto improve processes and procedures
The implementation will be finali-zed in 2013.
Internal training sessions are organized. Assessment is plan-ned to evaluate real working conditions, energy, effectiveness improvements.
By defining high performance objectives, we track efficiency, effectiveness, and the follow-up of the obtained results.
“IT is man-made, so is teamwork” Koen De Cooman, Head Software Division
18 19
EFICO FOUNDATION
COFFEE FOR PEOPLE, PEOPLE FOR COFFEE THE EFICO FOUNDATION IS THE PRIVATE FOUNDATION OF THE EFICO GROUP
ESTABLISHED IN 2003, SUPPORTING SUSTAINABLE MULTI-STAKEHOLDER
DEVELOPMENT PROJECTS IN COFFEE AND COCOA PRODUCING COUNTRIES,
IMPROVING THE LIVELIHOODS OF MANY.
It provides a structural tool to encourage sustainabil ity in both producing and consuming countries to have an impact
on farmers’ livelihoods, families, communities and environments.
It empowers beneficiaries to develop entrepreneurial skills. Coffee becomes an attractive crop to grow, through improving farming operations. We strive to strengthen the entire agricultural value chain.
By encouraging the empower-ment of rural communities, we increase local participation in decision-making, promote inde-pendence and mainstream res-ponsible practices support coffee women’s associations.
We believe that this kind of method guarantees the success
ations, local partners, coopera-tives, coffee and cocoa produ-cing organizations.
The Efico Foundation does not implement the projects.
Projects are implemented with Efico’s resources, as well as the financial support of 48 European coffee roasting companies.
Together with our customers and donors we were able to invest in 2012 € 132,520 in twelve projects.
This is less than last year. Following a visit to a particular project, our teams concluded this project was not conducted as agreed.
After our remarks concerning the failed project objectives, the pro-ject partner decided to return the granted funds.
of a project and amplifies its results.
To date, the Foundation supports 46 sustainable development pro-jects in 15 coffee and cocoa pro-ducing countries amounting + € 1,466,765.
A FLEXIBLE TOOL FORSUSTAINABLE DEVELOPMENT OF THEENTIRE SUPPLY CHAIN
By federating the sector and sti-mulating partnerships, coffee roasting companies or dona-tors can choose to support the Foundation, a selected project or a ‘tailor-made’ project in particular.
All projects are carried out in part-nership with local or governmen-tal organizations, NGOs, research institutes, national coffee associ-
NEW WORKING METHOD
With our partner the King Baudouin Foundation we orga-nized a brainstorming session in 2012 to improve the methodology of our call for new projects.
These two last years this resulted in an unprecedented turnout of applicants. The management of about 170 new proposals this year is a real concern.
Years of experience plus the expansion of our group with more local offices, all those facts allow us to appreciate the needs of development projects. This requi-res close monitoring and control for best results, which was possible thanks to the support of Renaud Cuchet and his team in Central America and Nicholas Marcet and the Kuru team in Ethiopia.
Growing efficiency and the crea-tion of added value are only pos-sible when being present with a good knowledge of the local situ-ation. Since we do not have the opportunity to be present every-where, we decided to establish an exhaustive list of countries.
Also the demand for ‘tailor-made’ projects increases, these requiring preliminary preparati-ons. Assistance is needed to find more pragmatic solutions to the most current environment and development challenges. Due to the overwhelming success the current call for new projects is momently closed until the deci-sion of the Board end 2013.
MAIN ACHIEVEMENTS2012
Even if all our projects are of equal importance, we focus on
three main achievements this year, illustrating the way the Efico Foundation is practically working.
CLIMATE-FRIENDLYFARMING PRACTICESIN GUATEMALA, COSTARICA, HONDURAS AND EL SALVADOR
Since 2009, the focus lies on cli-mate change in coffee regions.
The project aim was the co-deve-lopment of a Climate Module. This Module consists of criteria for miti-gation and adaptation to climate change, reinforcing the current Rainforest Alliance certification criteria and provide additional value.
Farmers/producers will be able to: • assess the risks of climatechange in farms and communities
“A well-informed coffee gro-wing community rewards our sustainable support” Katrien Delaet, Head Sustainable Projects
We support the Millennium Development Goals
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• review practices to quantifyand reduce emissions of green-house gases generated by gro-wing, harvesting and processing• increasing levels of carbonstored on their farms through the restoration of degraded lands, reforestation and improvements in soil conservation practices• adapt their production systems to changing growing seasons and other conditions resulting from effects of climate change.
Efico Central America provides supervision and coordination of the projects. The project 2012 consists in the application of the module on different countries in Central America. More info: press release commu-nication www.efico.com/press
This project was financially sup-ported by the Efico Group and Franke. Franke Coffee Systems is a Swiss manufacturer of professional coffee machines, also member of the UNGC.
WATER FILTER PROJECTSHEALTHY LIFE ANDLEVERAGE FOR SUSTAINABLEDEVELOPMENT
The World Water Situation - According to United Nations Global Compact“Nearly 900 million people world-wide lack access to safe drinking water; almost half of them are children” Source: report: SCALING UP
- Global Food Security and Sustainable
Agriculture - 2012
In 2012, the Efico Foundation implemented two water filter projects in partnership with two members of IWCA - International Women’s Coffee Alliance - in Guatemala and in Nicaragua, in total 858 water filters were distributed to more than 4,000 beneficiaries.
Efico Central America provides supervision and coordination of and to the projects. Other costs for training sessions and logistics were supported by the Association’s voluntaries.
These two projects were finan-cial ly suppor ted by AFAL- A s sociat ion des Femmes d’Amérique Latine and EURACEN - Chamber of Commerce Europe and Central America.
Thanks to the fundraising events of their members two new pro-jects will be launched in Salvador and Honduras next year.
BUILDING SUSTAINABLE COFFEE DRYING BEDS IN FERO COFFEE FARMERS COOPERATIVE
The project responds to the need of the Fero cooperative to enhance its coffee by improving drying beds. Traditional coffee drying beds in Fero are made of wood and must be frequently rebuilt due to bad weather conditions.
At night or in the rain season the drying beds have to be covered to prevent the coffee from humi-dity. Life expectancy of wooden drying beds is short resulting in wood consumption, time-consu-ming reconstruction and cove-ring of the beds at night.
It affects the quality of coffee because the wire mesh on which the coffee beans are spread on gets loose over time.
As a result the beans tend to slide to the middle of the wire mesh, not being homogenously dried.
PILOT-PROJECT
The cooperative will build sustai-nable drying beds enhancing quality conditions, based on local know-how gathered in other cof-fee-producing countries.
Cross-information of techniques used elsewhere suggest to test three different materials and roof-and roofless constructions. The core objective of the project is to implement qualitative, environ-ment-friendly and cost-effective coffee drying beds.
After the harvest an in-depth eva-luation follows in partnership with all stakeholders.
A Dutch roasting company sup-ported this project financially, having been a trusted partner of the Efico Group for years.
In August and November a large delegation of the Efico and our customer’s team visited the pro-ject to assess progress.
Efico and Kuru supervise and coordinate the projectmanagement.
Pilot-project Fero Cooperative Sidamo region Ethiopia 22 23
33%
38%
8%
21% Coffee RoastingCompanies
Efico's Grants
Public Donations
Private Donations
2010 2011 2012 Views 2,489 9,745 17,230 Most viewed films 1) Mechanical Harvesting in Brazil 175 3,523 10,845 2) Seabridge 390 569 N/A - Taking care of your coffee N/A 223 455 - A bridge between coffee, men and machines N/A 167 N/A - Ethiopia N/A 741 967 - From Flower to Cup N/A 519 444 - Climate-Friendly Farming Project As of October: 79 73 353
PRESENCE OF THE EFICO GROUP ON YOUTUBE WWW.YOUTUBE.COM/EFICOGROUP
PRESENCE OF THE EFICO GROUP ON WWW.EFICO.COM 2010 new 2011 2012 Visitors 31,535 25,857 25,284 - New visitors 64% 61% 63% - Returning visitors 36% 38% 37% Average time on site 2’16 2’39 2’46 Average page per visit 3 3.6 3.28 Most viewed pages - Efico/Home 14,689 11,927 11,291 - Seabridge/Home 9,861 5,954 5,785 - Efico Foundation/Home 10,242 5,253 4,338 - Efico/UN Global Compact 454 696 695 - Seabridge/UN Global Compact 236 178 84 - Efico Foundation/UN Global Compact 141 196 61
EFICO GROUP ENSURING A CONTROLLED GREEN COFFEE SUPPLY CHAIN
1 INCREASING ENERGY EFFICIENCY
Offices and warehouses
2 REDUCE GREENHOUSE GAS EMISSIONS
GREEN ENERGY PRODUCTION100% use of the green energy by Seabridge: green energy is certified, partly produced on-site by 4,600 photovoltaic panels. In 2012 this lead to a CO2 reduction of 454 tonnes, or 33% compared to 2011. In Belgium, we are prone to uncertain weather conditions. PROMOTE TRAIN TRANSPORTEstablish a strategic partnership with Belgian rail facilita-ting the reception and distribution of all goods by on-site direct access to rail transport. A reduction of 28% in CO2 emission by keeping trucks of the road. In 2012, 95% of inbound transport by train and more than 50% outbound by train.
3 REDUCE WASTE
SORTING AND RECYCLING Policy of all waste streams; polyethylene, paper, plas-tics, wood, cardboard and jute. Partly with high value recuperation and recycling 76.84%; an increase of 15% compared to 2011. Partly by energy reduction 23.16%; a decrease of 14% compared to 2011.
RECYCLING SERVICES FOR PACKAGING MATERIALS can be used by our customers.
6 COMMUNICATION
4 WATER AND ECOSYSTEM PROTECTION
Water efficiency management, minimal use of chemical or toxic products.
5 EFICO FOUNDATION
INVESTMENT IN SUSTAINABLE PROJECTSThe Efico Foundation supports 46 sustainable develop-ment projects in 15 coffee & cacao producing countries amounting to ± € 1.466.765. The 2012 investment is about € 132.520 in 12 projects inclu-ding five new projects.Projects can request a maximum of € 20.000 per year and 3 years support.
FINANCIAL MEANS100% of Efico Foundation’s financial resources goes directly to projects and are generated in 4 differents ways:1. Coffee Roasting Companies 2. Efico Group transfers, at least € 50,000/year and all the operational support-costs3. Public donations 4. Private donations
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FUTURE PERSPECTIVES
This Ethico report is also available on the United Nations Global Compact Website. For the printed version please consult www.efico.com/un-global-compact.Consulting this document on the web gives you the opportunity to discover more information.
Over the years, Efico has main-tained the same values, and has embarked on structural reforms in how a business can conduct and improve sustainable economy.
In March 2003, Efico joined the Global Compact with the pur-pose to generate, disseminate and ensure its legal compliance among all parties involved in the supply chain.
As a driving force in our supply chain, our proposed sustainable solutions provide added value to the sector in producing countries and in Europe.
Long-term partnerships streng-then our actions.
The success of our sustainable approach is mostly due to con-tinuous knowledge sharing and exchange with our stakehol-ders, following our values and requirements.
2013 will have its challenges.For our tenth anniversary we will continue our current pro-gram and the upgrade our performance.
Next, we will support the co-developed ‘Cl imate’ pro -duct and we will launch a new ‘Implementation Guide of the UN Global Compact Principles’.
We will also develop qualitative agriculture production programs, reduce greenhouse gas emissi-ons of the supply chain, increase green energy production, opti-mize the Efico Group’s transport policy and of course continue our support to the Efico Foundation.
As in previous years, this ‘Ethico Report’ will be shared with all our stakeholders. The link to this document publis-hed on the website of the UNGC will be mentioned in all our com-munication material.
Italiëlei 181, B-2000 AntwerpenTel.: +32 (0)3 233 78 65 [email protected] www.efico.com
Koffieweg 10, B-8380 Zeebrugge Tel.: +32 (0)50 36 70 80 [email protected] www.seabridge.eu
Koffieweg 10, B-8380 Zeebrugge Tel.: +32 (0)50 36 70 80
Italiëlei 181, B-2000 AntwerpenTel.: +32 (0)3 233 78 [email protected]