Sustainable alternative food Protein - Quorn Sustainability report final july 2014

Global demand for meat

unsustainable and risingLivestock 18%

of GHG emissionsHeart disease

and obesity

globally endemic

Quorn 90% less

saturated fat than

a meat spaghetti

bolognese

Quorn a sustainable

alternative to meat

Quorn up to 90%

lower emissions

than beef

“At Quorn we have a simple mission, ‘to help consumers eat less meat’.

Given the ethical, health and environmentalbenefits of Quorn foods, this places

corporate responsibility at the heart ofeverything we do.”

Kevin Brennan, Chief Executive, Quorn Foods Ltd 2014.

1. ForewordPage 2

3. What Exactly is Quorn?Page 8

5. Quorn: Impact onPublic Health

Page 14

2. The Future of FoodPage 4

4. The Benefits of QuornPage 10

6. Managing Our

Environmental Performance

Page 16

1

At Quorn we have a simple mission, ‘to help consumers eat less meat’.Given the ethical, health and environmental benefits of Quorn foods,this places corporate responsibility at the heart of everything we do.

Foreword1

2

1An unsustainableincrease indemand for meatas populationsgrow in numberand wealth.

2Significantenvironmentalimpacts from theproduction ofmeat – 18% ofGHG emissionscoming fromlivestock.1

3Major health issuesassociated with overconsumption of meat– obesity and heartdisease are now ofserious concern inmost developedeconomies.

Kevin Brennan, Chief Executive

‘‘Demand for food is growing rapidly, and at the same time the land available is probablyshrinking and climate change is making production more uncertain around the world. Howcan we produce enough food for nutritious diets in sustainable ways into the future? Quornis an excellent example of a different way of thinking: the product has good sustainabilitycredentials, low land footprint and is highly nutritious. What’s not to value about it?”

Prof. Tim BentonUK Champion for Global Food Security

The delivery of our mission will significantlycontribute towards three global issues aroundsustainability and health.

In our ‘future of food’ review we highlightthree now well recognised global issues:

The world is going to need many solutions tothese issues but Quorn can and does alreadyplay a significant part in addressing them.This is outlined in the report.

We are also acutely aware of the impact we haveon the environment. Through partnering with theCarbon Trust and many leading universities wehave identified our environmental performanceand drawn up a diverse programme to reducethe intensity of our impact. This report highlightsour progress and future plans in this area.

We remain proud of the contribution we havemade so far and excited about the futurepotential to contribute to helping consumers,all over the world, eat less meat.

Kevin Brennan, Chief ExecutiveQuorn Foods Ltd.February 2014

3See page 24 for Reference notes

‘‘CSR and CorporateSustainability is shifting,it is not just about howindividual companiescan reduce their impacts,it is now how their coreproduct can help make theworld more sustainable.We have to reverse someseriously worrying trendslike resource use, landuse, carbon and obesity.Quorn ticks so manyboxes - a product rangeand company to watch!”

Prof. Alan Knight OBESingle Planet Living

Quorn Foods is the firstglobal meat-alternativebrand to achieve third-party certification of itscarbon footprint figures.

There are now numerous reports and publications identifying thesignificant global issues relating to the unsustainability of our diet.We particularly want to focus on the three relating to meatproduction and consumption.

The Future of Food2

4

1. Unsustainable demand

By 2050 world population is set to increase toover 9 billion, 30% higher than today. In orderto feed this larger, wealthier and more urbanpopulation, food production will need to riseby 70%. This means an increase in cerealcultivation of over 1 billion tonnes and anincrease in meat production of over 200million tonnes.2 Much of the increased demandfor meat is forecast to come from the Asianmarkets, with China already consuming moremeat than either the USA or the EU (Figure 1)even though its per capita consumption iscurrently only half that found in these markets.3

In 2013, the UK government’s report on foodsecurity reinforced the need for a change inbehaviour such that meat is promoted as anoccasional treat rather than an everydaystaple.4 Meanwhile, as demand begins tooutstrip supply, so meat prices will continueto rise, placing excessive strain on the supplychain and leaving us vulnerable to issues suchas the ‘horsemeat scandal’. In fact, there is nowworldwide recognition that this increase indemand for meat simply cannot be met. Manyreports are now highlighting that continuedfocus on intensification of existing agricultureto provide a solution risks both catastrophicimpacts for our health and for theenvironment5 as well as increasing thepotential for conflict over vital resourcessuch as land and water.

0

10

20

30

40

50

60

70

80

90

Meat consumption (million tonnes)in USA, EU and China in 2012

USA EU CHINA

m t

es

Fig. 1

5See page 24 for Reference notes

2. The environmental impact of meat

Our understanding of climate change continuesto grow. Recent reports from the IPCC suggesta significant deepening of concern withpredictions that “nobody will be untouched bythe impacts of climate change.”6 In addition,science is now telling us that agriculture andfood production have a surprisingly importantrole within this and represent up to 29%of global greenhouse gas emissions7 withthe 2006 UN report1 suggesting ruminantcontributions to be as high as 18%. More recentreports have revised this to between 11% and15%8,9 and whilst reductions in emissions arepossible these impacts could also increase asdemand for meat grows, damaging the veryecosystems needed to produce crops foranimal feed. In fact, the production of meatfrom plant proteins is inherently inefficient withhuge amounts of grain and crops being used tofeed livestock when it could be fed directly tohumans. Currently, 90% of all soyabean mealis used in animal feed with analysts estimatingthat over 40% of global crops are used in thisway, representing a highly inefficient use ofthis food and the land required to grow it.10,11

Reports also show that over 15,000 litres ofwater12 are required to produce one kilo ofbeef and that if meat consumption continuesto rise as predicted then the amount of waterrequired to grow animal feed will need to doubleby the middle of this century. With over 2.5billion people already living in areas of waterstress and with global warming predicted tofurther reduce its availability, conflicts overwater are expected to become more acute.

Our appetite for more and cheaper meat isalso driving a whole industry of chemicalsused extensively as fertilizers and pesticides,with concerns that this is altering much of thebalance of nature and biodiversity.5 In addition,whilst some nations are working to restrictand control the use of antibiotics as growthpromoters in the production of meat, theirwidespread use has caused many now to talkof a new era of antibiotic resistant bacteriaand the return of pandemic disease in humans.

The UN estimated that livestock(meat production) makes up 18%of greenhouse gas emissions

The Future of Food (continued)2

6

3. Health impacts of meat consumption

Meat can play a vital role in a balanced diet, asrecognised in the UK government’s ‘Eat Well Plan’.However, science is also showing clearly thatexcessive consumption of red meat can contributeto obesity and complications of heart diseaseand diabetes. Obesity is close to endemic inmany developed economies and a recent reportfrom the Office for International Development(ODI)13 showed an alarming increase in thelevels of obesity in developing countries aswell. In total, the ODI estimates that globallyone third of all adults are obese or overweight.

In the UK, we consume around 500 meals a yearcontaining meat.14 This is an unprecedentedamount and is unlikely to support a healthy diet.In fact research from the University of SouthernCalifornia15 has recently shown that high levelsof dietary animal protein in those under 65 wereassociated with a fourfold increase in their riskof death from cancer compared to those on alow protein diet.

‘‘While meat represents an important source of high quality protein and a range of micronutrients,energy-dense diets containing excessive amounts of red, and particularly processed meat havebeen associated with an increased risk of a range of chronic diseases including cardiovasculardisease, type 2 diabetes and colorectal cancer. While such concerns were largely restricted toWestern industrialised countries, the rapid increase in meat consumption associated with manyemerging economies is of concern. Quorn represents a low fat, high protein alternative which cansubstitute for such products and potentially reduce these risks. In addition, unique properties ofthe fibre and/or protein associated with Quorn may have specific benefits in themselves.”

Andrew Salter BSc, PhD, RNutrProfessor of Nutritional Biochemistry, University of Nottingham

7

The cost of this for public health is a majorconcern for governments the world over. Theevidence appears well established: obesitytogether with excessive consumption offats, sugars and salt is linked to rising globalincidence of non communicable diseases.However, dietary behaviour change isnotoriously difficult, especially where thereis a belief that the alternative will be lesssatisfying. That’s why great tasting healthyalternatives to meat are so important.

UK estimate:500 meals ayear are eatencontaining meat

See page 24 for Reference notes

We believe that for each ofthe three issues highlightedwe can play a significantpart in the solution.

What Exactly is Quorn?3

The aim was to find a micro-organism thatcould easily convert plentiful carbohydrates intoscarcer and more nutritionally valuable proteinsbut without the use of animals as the methodof conversion. Many years of R & D and over£100m investment identified a tiny memberof the fungi family that could be converted intoa protein. This led to the mass production ofmycoprotein, the unique ingredient that makesQuorn products so special.

Rather than animals we use fermenters to growand harvest the protein. It is not dissimilar to theway that production of beer or yoghurt works.

What was amazing about this new protein wasits ability to replicate the taste and textureof meat. The unique fibrous nature of Quornmeans it can provide the textural experienceof eating meat. Its ability to take on flavourand lack of aftertaste means it can deliverthe taste of meat and meat dishes brilliantly.

This is what has already turned Quorn intoa £200m brand globally with over 3 billionservings already having been enjoyed.

8

Mycoprotein is a tiny member of the fungifamily and is at the heart of all Quornfoods. Uniquely it provides the textural aswell as flavour experience of eating meat

See page 24 for Reference notes

Our origins go back to the 1960s, a period whenthere were genuine concerns about our ability tofeed the world. As a response to this Lord Rank,our founder, set up a project to find a new sourceof protein. This was deemed by many to be thesearch for the first new food since the potato!

‘‘Quorn is almost unique as a foodstuff. It isprobably the only successful example of atechnological exploitation of a naturallyoccurring new protein source in orderto create a new food and the future willneed more of this ingenuity to meet thechallenges of food security. This, as yetrelatively untapped resource offersexciting possibilities to both nutritionistand food engineer alike and is based uponthe product’s low levels of fat allied witha high protein content and a high utilityin terms of product format flexibility.These exceptional characteristics alsoinclude the structural properties of thefibres themselves which might still beexploited in ever more ingenious ways.

Dr Phil CoxHead of Bio-Food Engineering Group,University of Birmingham

9

2014Quorn is a £200m globalbrand: 3 billion+ servings

‘‘As consumers we are payingincreasing attention to the typesof food we buy and consume. Foodscares, dietary advice, global warmingand potential future global foodshortages are influencing the choiceswe make. Our research at NewcastleBusiness School is showing that a lowfat content and a low carbon footprintare important food attributes thatconsumers value and highlights howQuorn can play an important role asconsumers change their behaviourand eat healthier, more sustainableand environmentally friendly food.

Prof. Fraser McLeayProfessor of Strategic Marketing ManagementNewcastle Business School

The Benefits of Quorn4

10

FACT: To make 1kg of Quornrequires only 2kg of wheat

Quorn provides an efficient and sustainable way of producinga healthy new protein with a lower environmental impact

The 2006 UN report‘Livestock’s Long Shadow’1,highlights the inefficientnature of producingprotein through livestock.

A number of studies have shown thatbetween 12 and 24 kg of feed arerequired to produce 1 kg of ediblebeef.16 Poultry has a higher conversionefficiency but typically requires 2 to4 kg17 and in both cases more proteinis fed to the animal than is actuallyproduced. With Quorn we simply takethe carbohydrate from the grain andconvert it to protein – without theneed for animals (Figure 2). In fact,because the original grain proteinremains available, the Quorn processactually increases the overall proteinbalance (Figure 3).

Fig. 2

11See page 24 for Reference notes

‘‘We need different ways ofproducing food to meetthe demands of a worldpopulation predicted torise to over 9 billion by2050. Protein from fungi,such as Quorn, is a majorstep in the right direction.”

Prof. Lynne BoddyCardiff School of Biosciences, Cardiff University

With over 70% of agricultural land currently usedfor livestock production, the growing demand formeat is going to mean that more efficient solutionsare needed as land becomes scarcer.18 The simpleelegance of the Quorn process lies not only in itsability to create protein really efficiently but also inits ability to deliver a taste and texture that peopleenjoy, making it easy to 'make the change'.

Protein yield per tonne of wheat usedin production of Quorn and Beef

A million consumers eating Quornmince instead of beef mince at leastonce a week over a year would requireapproximately 12,500 fewer acres...the equivalent of 7,000 football pitches.

Fig. 3

The Benefits of Quorn (continued)4

12

Quorn is more water efficient

Water is a scarce resource that will come underincreasing pressure as demand for meat grows.Quorn has the potential to play an importantrole by providing protein that is more efficientin its use of limited water resources.19 Whilst thelevel of water used in the production of meatwill vary by animal and method of production,currently available data suggest that the waterfootprint of beef could be 15 times greaterthan Quorn mince.

As both populations and demand for meat growsthen pressure on water resources will inevitablyincrease. Quorn has the potential to play animportant role by providing protein that is moreefficient in its use of limited water resources.

Quorn produces fewerGHG emissionsFood production is a major contributor toemissions and thus climate change. Livestockspecifically contributes up to 18% of greenhousegas emissions1 - a greater share than transport.

Over the last two years we have worked tounderstand both the impacts of meat and ofQuorn. There is extensive data around meat,especially beef. Inevitably, data can varydepending on assumptions. We worked withRicardo AEA to reach a balanced view ofextensive peer review publications, NGOsand food manufacturer reports. In parallel weworked with the Carbon Trust to undertakethe same analysis for Quorn.

The waterfootprint of

Quorn mince =15 times smaller

than thatof beef

13

By converting dishes from meat to Quorn,consumers can significantly reduce their carbonemission. In fact our estimates suggest that 2012sales of Quorn mince represented a carbon saving,when compared with available figures for beef,equivalent to 13,000 cars being driven for a year.

At Quorn, we believe that multiple solutionsand radical thinking are needed to addressthese challenges. The evidence suggests thatwe cannot rely solely on the intensification ofexisting agriculture and food production toprovide solutions to the 9 billion challenge. Webelieve that Quorn foods deliver an importantnew dietary tool that can address our futureneeds for a tasty, healthy new protein with alow environmental impact.

The results are remarkable. It shows thatQuorn products can have a carbon footprintup to ten times lower than beef, and up to1.5 times lower than chicken.20

Comparative carbon emissions

Quorn

Quorn

Up

to

90

% lo

we

rth

an

be

ef

Up

to

30

%le

ss t

han

chic

ken

Multiple solutions and radicalthinking will provide solutionsto the 9 billion challenge

Quorn: Impact on Public Health5

14

Governments around the worldare looking for solutions to helpaddress the problems of dietand health related disease.Quorn can help consumerssignificantly improve theirhealth by helping changebehaviours with simple to usehealthy alternatives to meat: • By having a really authentic meat-like taste

and texture, Quorn foods can help you enjoyall your favourite meals but without thesaturated fats and calories often associatedwith meat

• Even a small change can make a big difference- simply swapping the beef mince in yourSpaghetti Bolognese for Quorn mince justonce a week for six months could meanreducing your calorie intake by 5,252 calories.That's equivalent to the calories you wouldburn jogging more than 2 marathons

• All Quorn foods contain mycoprotein, ahealthy new protein that contains all theessential amino acids as well being a goodsource of fibre. Importantly, mycoprotein isalso naturally low in fat and saturated fat

• Doctors, nutritionists and heart foundationsall over the world recommend Quorn.

We invest over £15m annually to communicatethese health benefits to encourage consumersto change their behaviour. We also invest ineducation into schools on the health benefitsof Quorn. This can help children grow up withhealthier diets. The provision of Quorn in millionsof school meals helps them get off to a good start.

At Quorn we also support government initiativessuch as Change 4 Life and the ResponsibilityDeal to help consumers improve their diets.

Out of home, Quorn is positioned as a healthyprotein with low environmental impact. Inaddition, many schools and businessesoperating in foodservice have signed up to thegovernment’s Responsibility Deal, pledging toreduce calories, salt and saturated fat, amongstothers. By adding Quorn dishes to their menus,rather than lean beef mince, they can enablecustomers to eat 60% fewer calories and 90%less saturated fat whilst also providing up to a90% carbon saving compared to beef mince.Working with local education

authorities, Quorn is helping childrento eat more healthily and is servingover 16 million school meals per year.

15

We work in close collaboration withvarious network partners to delivereffective R&D for sustainable growth.

We continue to build our learning on theimpact of Quorn on a sustainable healthydiet and how to bring about behaviourchange in a difficult area. This has includedcollaboration with Imperial College, Universityof York, University of Northumbria and manyleading clinicians in this field.

Lastly we continue to invest to make our foodsbetter and better. To get consumers to eat healthierwe need to deliver outstanding food. In the last threeyears we have made major improvements to taste andtexture on nearly every product and launched excitingnew products such as Chorizo, Cocktail Sausages, PicnicEggs, and Steak Slices.

We prideourselves onan innovativeand tastyproductdevelopmentfocus

‘‘Our research at Imperial has shown interesting beneficial effects ofmycoprotein on satiety, glycaemia and insulinaemia. Whilst there ismore to do to understand these effects, these results build on previouslypublished research and position Quorn foods as an important choicein helping to address modern day diet and health related issues.”

Prof. Gary FrostChair in Nutrition and Dietetics,Imperial College London

From ‘farm to fork’ we arededicated to outstandingenvironmental performance

Managing Our Environmental Performance6

Leading the wayAt Quorn Foods, we believe we have a roleto play as part of the future food challenge.We believe that our low carbon credentialscompared with typical meat diets are impressive.We therefore take seriously our responsibilityto ensure we are managing our own impactson the environment – saving carbon, energy,water, natural resources and therefore cost. Wecontinue to live by our long-standing history ofresearch, development and innovation and takea lead within the food manufacturing industry byinvesting in analysis of the entire supply chain,from ‘farm to fork’, in order to understand ourown impacts and the challenges ahead.

This level of analysis cannot be achievedovernight, and we know there is more work tobe done. Yet Quorn Foods is the first globalmeat-alternative brand to achieve third-partycertification of its carbon footprint figures andas such, we encourage other food brands tojoin us in exploring how we can all contributeto more sustainable diets for our consumers.

6.1 Product carbon footprintingQuorn Foods’ best-selling meatalternative products are the first to havetheir carbon footprints independentlycertified by the Carbon Trust.

Achieving third party verification of our Quornmince and chicken-style pieces product carbonfootprints (destined for retail sale in the UK,Nordic and South African markets) was just thestart of work to calculate our greenhouse gasemissions. We have been busy calculating -and reducing - the product carbon footprintsof many products in our range.

16

Quorn Foods is the firstglobal meat-alternativebrand to achieve third-party certification of itscarbon footprint figures.

Our product carbon footprintswere calculated in accordance with:

• PAS 2050: 2008 - Specification for theassessment of life cycle greenhouse gasemissions of goods and services

• The Code of Good Practice for ProductGreenhouse Gas Emissions and ReductionClaims (2008)

• Certification requirements of the CarbonTrust’s Footprint Expert™ Guide – version 3.3

This research was vital in allowing us to releaseinformation about the impacts of our productsand inform our reduction efforts as to theareas of most carbon impact throughout oursupply chain.

Working with the Carbon Trust also allows usto proudly display the Carbon Reduction Labelon our packs – emphasising our third partycertification achievement and exemplifyingto our consumers a commitment to furthercarbon reductions.

What is a carbon footprint?

A ‘carbon footprint’ measures the totalgreenhouse gas (GHG) emissions causeddirectly and indirectly by a person, organisation,event or product. Our product carbon footprintcalculated GHG emissions for all stages of thevalue chain, from raw materials to use anddisposal of the product and packaging.

The carbon footprint is measured in units ofcarbon dioxide equivalent (CO2e) – allowingthe six commonly measured gases thatcontribute to global warming to be comparedon a like-for-like basis.

Our footprint figures

Product carbon footprints (see Figure 4) forbest-selling products in our frozen categorywere calculated in association with SheffieldHallam University and the Technology StrategyBoard’s Knowledge Transfer Partnershipscheme. The models and resulting figures wereindependently certified by the Carbon Trust,ensuring that our work followed the mostdetailed approach to footprinting and metinternational standards. This process requiredextensive data collection and collaborativeworking with our supply chain.

Product Region Cradle to Gate Cradle to GraveCO2e CO2e(rounded - (rounded -kgCO2e per kg) kgCO2e per kg)

Nordic region 3.4 4.5

South Africa 3.4 6.5

UK 3.4 5

Nordic region 3.4 4.5

South Africa 3.4 7

UK 3.4 5

QuornMince(Frozen,retail,300g)

QuornPieces(Frozen,retail,300g)

17

Fig. 4

Disposal &recycling

Consumeruse

Distribution& retail

Productmanufacturing

Rawmaterial

6.2 EnvironmentalResources StrategyWe continue to work with the Carbon Trustin order to understand our environmentalimpacts and further drive down our emissions.We have measured our own organisationalcarbon baseline (2012) and are on track toreduce this baseline on the run-up to 2016,even though we are producing more to meetour business growth both in the UK and in our 13 international markets. We have beenworking and investing in energy reductionprojects for many years and continue to driveinitiatives that will ensure we are able to meetrising demand for our products whilst usingless energy and fewer natural resources.

Electricity use is key to our effortsto reduce energy – contributing73% to our Scope 1 and 2 footprint

Organisational footprintingwith the Carbon TrustQuorn Foods followed the GreenhouseGas (GHG) Protocol Corporate Standard inorder to establish our own company-widefootprint on the environment. This is aninternational standard that helps us toquantify and prepare to report our emissions.

Organisational carbon footprinting allowed usto quantify our Scope 1, 2 and key elementsof our Scope 3 emissions (see Figure 5). Scope3 emissions are created both upstream anddownstream of our direct operational control,are therefore much more challenging tocalculate yet form a key part of many

organisations’ emissions. Our previous productcarbon footprinting work and supply chaincollaboration supported us to go beyond simplyour own operations to understand those bothupstream and downstream of our business.

Managing Our Environmental Performance (continued)6

18

Fig. 5

We now know procurement of ingredientsdominates our overall footprint on theenvironment – contributing approx. 75% toour overall (Scope 1, 2 and 3) emissions. Thishighlighted to us the importance of lookingbeyond simply our own energy use and thesignificance of the supply chain collaborationswe plan to develop further in 2014.

Organisational footprinting covers:

• Scope 1 emissions: Owned transport, fuelconsumption, process and fugitive emissions

• Scope 2 emissions: Purchased electricity

• Scope 3 emissions: Include purchasedgoods and services, upstream transport /distribution, waste, business travel.

19

By making one simple change andchoosing Quorn, you can reducethe carbon footprint of yourfavourite Spaghetti Bolognese or chilli dish by up to 90%.

‘‘The level of effort and strategic thinkingthat has gone into producing Quorn’s firstEnvironmental Report has put the companyin a great position to build sustainabilityinside its business. Their progress to datedemonstrates a commitment to ensure thattheir environmental impact hasn’t grown atthe same rate as their business. There is anadmirable focus on proving the low carboncredentials of Quorn’s products using realdata, having their impacts measured andcertified by the Carbon Trust.

Tom CumberlegeConsultant, The Carbon Trust

Managing Our Environmental Performance (continued)6

20

6.2.1 CarbonComparing our overall business emissions to ourproduction figures revealed the effectivenessof the range of efficiency projects we haveimplemented, as the carbon intensity of ourbusiness fell year-on-year from 2010 to 2012(see Figure 6). This is despite a 10% increasein production volume from our sites.

Our business continues to thrive; thereforewe recognise the importance of continuing todrive down emissions. We plan to do this byimplementing further energy reduction projectsacross all three of our production sites. By doing so,we believe we can realistically grow our businesswhilst improving the carbon efficiency of ourproduction by at least 14% from a 2012 baseline.

Working with the Carbon Trust has providedan action plan as to how to achieve this.

Fig. 6

We believe we can realistically growour business whilst improving thecarbon intensity of our productionby at least 14% from a 2012 baseline

Our Billingham site is theonly production site inthe world that producesthe ingredient key toall Quorn products –mycoprotein. This sitehas consistentlymanaged to reduce thecarbon emissions pertonne of mycoproteinsince 2010. Our onsiteengineers and technicalexperts are continuallyusing their expertise tocome up with innovativeand ground-breakingways to improve theefficiency of our airliftfermentation process.

At our Methwold site we are looking atswitching from kerosene to LPG. Thiswill offer a possible 14% saving on GHGemissions when the two are compared.We’ve also just installed over 40 meterson site so that we can get feedback on ourutilities usage at any time of day or night.

The carbonintensity of ourbusiness (tonnesCO2 / tonneproduction)

0.569

2010

Ton

ne

s C

O2

/ To

nn

e p

rod

uct

ion

0.568

2011

0.521

2012

-8%

21

6.2.2 EnergyQuorn Foods is the global market-leader in meat-free foods and as such, we must continually workhard to ensure our production facilities are asefficient as possible.

We met rising demand for our products in 2012by increasing production across all sites by 10%overall compared with 2011. Our markets – bothin the UK and globally – continued to expand in2013 and therefore, continuing to produce morequality products with less energy is key.

Energy efficiency projects have been carried outacross our production sites for many years andremain absolutely vital in ensuring our energy useand emissions do not increase in line with ourproduction output. Some of our key investmentsand projects include: Automated Monitoring andTargeting (AM&T) systems at our Stokesley andMethwold sites, heat recovery systems, equipmentupgrades / optimisations and review of sitepolicies and procedures relating to equipment use.

6.2.3 WaterWater is essential to all three of our processingsites – particularly our fermentation site atBillingham - yet calculating our organisationalwater footprint revealed that in 2012 we hadreduced our water footprint by 12% since 2010.We have plans in place to further improve ourefficiency of water use. Our Billingham site hasimproved its water efficiency year-on-year since2010 and is currently planning the installation ofan anaerobic digestion system due for completionin 2016. Our Methwold site has reduced itswater consumption since 2010 by over 50%.

The airlift fermentation process used to producemycoprotein is similar to that of the brewingindustry except we are looking to harvest theprotein rather than the liquid. Our currentmethod of liquid waste treatment is energyintensive but research has demonstrated thepotential to create energy from our waste byanaerobic digestion. Plans are now in place todevelop this technology and so further reducethe energy use and carbon footprint of ourprocess. In addition, research collaborationswith UK universities have also identified anumber of exciting molecules within the wastestream with important commercial applicationand value. Our R&D agenda is focused onunderstanding more about this future potential.

‘‘We fully endorse Quorn’s drivetoward sustainability and sustainablefood production.As well as producing mycoproteinthat is at the heart of all Quornfoods, our research at the GreenChemistry Centre of Excellence andthe Biorenewables DevelopmentCentre is showing the fermenterwaste stream to be a rich and excitingsource of natural components withsignificant commercial potential inboth food and non food applications.

Prof. James H ClarkDirector, Green ChemistryCentre of Excellence

Dr Avtar S MatharuDeputy Director, Green ChemistryCentre of Excellence

Managing Our Environmental Performance (continued)6

6.2.4 Packaging & WasteCutting out waste

We have been working hard to manage ourwaste more sustainably and are proud to saywe have reduced waste sent to landfill by47% since 2010.

Packaging

As part of our packaging supplier evaluationprocess, we actively look for suppliers who candemonstrate responsible business practice anda commitment to sustainable development.

‘Light weighting’ of packaging is a standardrequirement at product design stage. We workclosely with our suppliers to establish the minimalmaterials possible to create a functioning pack –resulting in less material, energy use, logisticsand waste throughout the supply chain.

‘Project Squeeze’ for chilled packaging

Our teams worked hard on a project earlierthis year that completely reassessed andredesigned the way our chilled productpackaging appears on-shelf.

The project:

1 Reduced width sleeves for several products

2 Reduced pack size used for several products

3 Changed orientation of a number of packson our retail fixtures

This enabled us to not only save on rawmaterials but also maximise the efficiencyof our pallets and distribution.

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Burger packaging before

Burger packaging after

Our Stokesley site achieved a 98% recyclingtarget this year and continues on the roadto zero waste to landfill. We ensure that allfood waste finds an alternative use suchas animal feed or biofuel, packaging isrecycled and process waste is managedeffectively and diverted from landfill.

With approximately 75% of our emissions beingdriven by our use of raw materials, communicationand collaboration with our supply chain isabsolutely key. Our plans moving into 2014 willensure all of our suppliers are engaged with usin minimising our environmental impacts andimproving efficiency.

A good example is our commitment tosupporting the work of the Roundtable onSustainable Palm Oil (RSPO) and ensuring all

our suppliers are members. This is despite thefact that Quorn Foods is certainly not a majorglobal user of palm oil – keeping our use of itsderivatives to a minimum and restricting usageto situations where its functionality is key toproviding the best quality products. Howeverwe are fully aware of the concerns ofconsumers regarding the environmental andsocial issues relating to palm oil cultivation andharvesting and are keen to provide reassurance.

6.2.5 Supply chain collaboration

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Quorn Foods is an equal opportunity employerand is committed to working within the spiritand letter of UK employment law.

We work hard to ensure that we provide a safeand secure environment for all our employees.

Two of our sites recently achieved certificationto the British Standard Institute’s BS OHSAS18001 standard for Occupational Health andSafety Management best practice. Our thirdsite will achieve this in 2014. Our own internalaudits have led to recent investment inimproved Car Park safety and better inductionof both contractors and temporary staff.

Quorn has been assessed and approved forsale by all markets we have approached forlaunch including UK FSA, US FDA, AustraliaFSANZ, EU EFSA and Health Canada.

By March 2014, all our manufacturing operationswill comply with BS OHSAS 18001, OccupationalHealth & Safety Management Standard that willreflect the high standard of safety on the sites.

Our manufacturing sites also work toexceptionally high standards of food safety andquality. The Belasis site is certified to ISO22000standard for food safety management whilstStokesley and Methwold sites are BRC accredited.

All three of our sites operate a nut free policy.

1 FOOD AND AGRICULTURE ORGANISATION OF THE UNITED NATIONS(FAO) (2006) ‘Livestock’s long shadow: Environmental issues and options’http://www.fao.org/docrep/010/a0701e/a0701e00.HTM

2 http://www.foeeurope.org/meat-atlas;http://www.fao.org/fileadmin/templates/wsfs/docs/expert_paper/How_to_Feed_the_World_in_2050.pdf

3 http://www.theguardian.com/news/datablog/interactive/2013/aug/05/countries-meat-eaters-compared

4 House of Commons International Development Committee. Global FoodSecurity. 2013

5 Lymbrey, P and Oakeshott, I. (2014) Farmageddon. The true cost of cheapmeat. Bloomsbury Press.

6 http://ipcc-wg2.gov/AR5/images/uploads/IPCC_WG2AR5_SPM_Approved.pdf

7 http://ccafs.cgiar.org/news/press- releases/agriculture-and-food-production-contribute-29-percent-global-greenhouse-gas

8 http://ccafs.cgiar.org/credible-figures-livestock- emissions-greenhouse-gases

9 FOOD AND AGRICULTURE ORGANISATION OF THE UNITED NATIONS (FAO)(2013) ‘Tackling climate change through livestock: A global assessment of emissionsand mitigation opportunities’ http://www.fao.org/docrep/018/i3437e/i3437e.pdf

10 http://www.fao.org/fileadmin/templates/nr/sustainability_pathways/docs/Factsheet_LIVESTOCK_and_LANDSCAPES.pdf

11 http://alumni.stanford.edu/get/page/magazine/article/?article_id=29892

12 Mekkonen, M and Hoekstra A (2012) A global assessment of the waterfootprint of farm animal products. Ecosystems 15, 401 – 415

13 OFFICE FOR INTERNATIONAL DEVELOPMENT (2014) ‘Future diets:Implications for agriculture and food prices’ http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8776.pdf

14 DEPARTMENT FOR ENVIRONMENT FOOD & RURAL AFFAIRS (2013) ‘FamilyFood 2012’ https://www.gov.uk/government/uploads/attachment_data/file/265243/familyfood-report- 12dec13.pdf and Agriculture and Horticulture DevelopmentBoard (2013) ‘EBLEX UK Yearbook 2013 Cattle’ http://markets.eblex.org.uk/documents/content/markets/m_uk_yearbook13_cattle110713.pdf

15 http://www.washingtonpost.com/national/health-science/too-much-protein-could-lead-to-early-death-study-says/2014/03/04/0af0603e-a3b5-11e3-8466-d34c451760b9_story.html

16 RAMIREZ, CA, PATEL, M and BLOK, K (2003) ‘How much energy to process onepound of meat? A comparison of energy use and specific energy consumptionin the meat industry of four European countries’ Energy 31 (2006) 2047-2063;PIMENTAL, D and PIMENTAL, M (2003). ‘Sustainability of meat-based andplant-based diets and the environment’ The American Journal of ClinicalNutrition (2003) 660S-3s; CEDERBERG, C and STADIG, M (2003) ‘Systemexpansion and allocation in life cycle assessment of milk and beef production’International journal of LCA 8 (6) 350- 356; CASSIDY, ES, WEST, PW, GERBER,JS and FOLEY, JA (2013) ‘Redefining agricultural yields: From tonnes to peoplenourished per hectare’ Environmental Research Letters 8 (2013) 034015.

17 ROSEGRANT, M.W., LEACH, N. & GERPACIO, R.V. (1999) ‘Meat or wheat for thenext millennium? Alternative futures for world cereal and meat consumption.’Proceedings of the Nutrition Society, 58: 219–234.

18 RIPPLE, WJ, SMITH, P, HABERL, H, MONTZKA, SA, MCALPINE, C andBOUCHER, DH (2014) ‘Ruminants, climate change and climate policy’ NatureClimate Change Vol 4 Jan 2014.

19 HOEKSTRA, AY (2013) ‘The water footprint of modern consumer society’Routledge, UK

20RICARDO-AEA (2013) ‘Quorn carbon footprint comparison to beef, chickenand other vegetarian foods’ internal report.

References

Quorn Foods employs 612 employees across 3 sites: Belasis(Teesside), Stokesley (North Yorkshire) and Methwold (Norfolk).

Quorn Foods company information

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‘‘Sustainability to me is the icing on the cakeand I think our story will have momentumfor years to come. Where we’re at is almostahead of its time. I have no doubt thatsustainability will become much more frontof mind for our shoppers - and will be a keydriver of growth in years to come and a keyreason why people choose Quorn.”

Julian CookeHead of UK Category ManagementQuorn Foods Ltd.

A sustainable vision:Mixed use farming within 1 mile ofour Stokesley manufacturing site

Quorn Foods Ltd, Station Road, Stokesley, North Yorkshire TS9 7AB

www.quorn.co.uk

Printed on FSC-certified paper: Cover: Explorer Offset 300gsm FSC DM DGL, Inset: 20 Pages Explorer Offset 150gsm FSC DM DGL.

Join the debateWe believe Quorn makes a positive contribution to making diets more

sustainable. Our aim is to keep the conversation going and create debate.We welcome your help and ideas to make this happen.

Please contact:Kevin Brennan – Chief Executive E: [email protected]

Tim Finnigan – Technical Director E: [email protected]

Martin Lofnes - Finance Director E: [email protected]

or email:

[email protected]

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