1. Art and Diseño

Everything stevia
2014 SUSTAINABILITY REPORT
PROVING OUR COMMITMENT TO SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
CONTENTS
Our Approach to Sustainability
i
01
02
03
CEO Statement
Sustainability Strategy & Goals
Stakeholders
Materiality
About PureCircle
06
07
08
09
Company Basics
Governance & Compliance
Sustainability Management
Membership & Associations
Environmental Impacts
11
13
14
16
18
19
21
Environmental Management
Energy Management
Climate Change
Water Conservation & Efficiency
Waste & Effluents
Land Use & Biodiversity
Transportation & Logistics
Workplace Impacts
23
26
27
Human Capital
Labor Practices & Diversity
Health & Safety
Community Impacts
30
31
Philanthropy & Charitable Giving
Food Security
Product Impacts
33
35
Food Safety & Quality
Health & Nutrition
36
37
Product Life Cycle Impacts
Customer Communications
Supply Chain Impacts
39
41
Suppliers Relations
Working with Farmers
About This Report
44
Report Information
GRI Content Index
45
Index
OUR APPROACH
TO SUSTAINABILITY
i
CEO STATEMENT
This report is just one of the steps we are taking to ensure that we fulfill our responsibilities to stakeholders with
transparency, honesty, and proactive management.
PureCircle’s commitment to sustainability has been embedded in our corporate practices since the beginning.
We have extensive policies, management systems, and performance data that attests to our ongoing efforts, much of
which is included in the following pages.
I am particularly proud that we are taking a life-cycle approach to environmental management—examining and mitigating our impacts, beginning at the farm, all the way through processing and ultimately ending with the customer. By
carefully measuring impacts at each stage of the supply chain, we are able to focus our resources where they can do
the most good. That work is paying off: in 2013, our stevia products had a 29% - 79% smaller carbon footprint and a
92% - 96% lower water footprint than other sweeteners on the market.
We know that along with ensuring consistent supply of leaf, it is important to extract, purify and blend desired stevia
extracts at a scale, safety and consistency expected by our customers. We have in place the world’s largest stevia extraction
and purification plants, and as a responsible corporate citizen, we are conscious of our impacts. Extensive labor and human
rights programs are in place, including third party auditing, at our production facilities. Ongoing training, and our commitment to transparency will ensure that our commitment to our people does not waver.
I AM PROUD TO PRESENT PURECIRCLE’S FIRST SUSTAINABILITY REPORT,
WHICH OUTLINES OUR ENVIRONMENTAL AND SOCIAL COMMITMENTS AND
TRACKS PROGRESS AGAINST THOSE GOALS.
Some of the most exciting sustainability initiatives are happening in our supply chain as we engage with small-scale farmers
that grow the stevia plants. We are working with them on issues ranging from food security to waste reduction, biodiversity
to fertilizer application. Our sustainable agriculture policies and on-the-ground training are making a huge difference and we
have aggressive plans to do even more in the coming years.
Finally, a word about obesity, one of the toughest challenges facing food and beverage companies today. In 2013
alone, we supplied enough stevia to enable a reduction of 500 billion calories from global diets. We are proud to be
part of the effort to address the obesity crisis, and we are working with our customers to find new and exciting ways to
provide consumers with delicious options that meet lower-calorie goals.
Looking ahead, we see opportunity in many areas of sustainability, but also challenges. Scaling up our sustainability
efforts as our business grows will require significant attention and resources. This is particularly true at the farm level,
where our goal is to engage 100,000 farmers by 2020 in our sustainable agriculture programs.
I look forward to reporting back next year on our progress. In the meantime, please feel free to provide us feedback
on our sustainability performance through our website, or any of our communication channels. Open and transparent
engagement is at the heart of our sustainability strategy and I hope that you will be part of our journey.
Sincerely,
Magomet Malsagov
Chief Executive Officer
01
Sustainability
Strategy & Goals
It is our mission to scale stevia as the next natural mainstream sustainable sweetener. Our
sustainability strategy is based on three important pillars:
Ecosystem
Our goal is to provide a net positive benefit to the people and the communities in
which we operate, from the land where thousands of our farmers live to the regions in
which we operate the world’s largest purification and extraction plants.
Environment
We strive to minimize our impact on the environment through strong procedures and
practices throughout the supply chain. Our stevia is grown, processed, and distributed in a
manner that has a dramatically lower carbon and water footprint than other sweeteners.
Public Health
We offer a great tasting, natural, no calorie sweetener that can effectively reduce
calories for a wide variety of products. Our focus on innovative product development
will help transform the marketplace so that consumers have better access to reducedcalorie food and beverage options.
2020 Sustainability Intensity Goals (against 2011 baseline)
Goal
2013 Progress
To Date
Status
Reduce carbon intensity across the
product life cycle
20 percent reduction
4 percent reduction
On course
Reduce energy intensity across the
product life cycle
20 percent reduction
42 percent reduction
Exceeded
Reduce water intensity across the
product life cycle
20 percent reduction
24 percent reduction in
direct operations
On course
Eliminate waste across our farming and
processing operations
Zero waste to landfill
99.3% diversion rate at
our processing facilities
On course
Support small-scale farmers with our
sustainable agriculture policy
100,000 farmers
supported
18,000 farmers
supported
On course
Ensure traceability from gate to
individual farm
100% traceability
Significant traceability to
region and farm exists
On course
Focus Area
02
Stakeholders
We take pride in creating shared value with our stakeholders. From working with small-scale farmers to delighting consumers with the next
generation of stevia ingredients, we are committed to understanding and responding to stakeholder needs and opinions.
Stakeholders
Stakeholder
Description
Supply Chain
Partners
Our most critical supply chain
partners are the farmers who
grow the stevia used in all
of our products. Other key
suppliers include packaging,
logistics, and processing
ingredient providers.
Communication
Channels
What They
Expect
What We
Expect
Face-to-face and
electronic collaboration, contracting and
procurement.
Our suppliers look for
honest and ethical
treatment, and our
farmers in particular seek long-term
partnerships that will
allow them to develop
additional capacity.
We need suppliers that
meet our quality, environmental, health and
nutrition, food safety, and
labor and human rights
expectations.
Employees
Our employees span the globe
and provide manpower, innovation, and inspiration.
Daily communication,
training and skills
development, performance reviews.
Employees want a fair
paycheck, skills development opportunities, and
effective leadership.
We seek the best and the
brightest employees, especially those that thrive in a
fast-paced and innovative
environment.
Customers and
Consumers
We sell our products to other
food companies, who use our
stevia formulations to create
lower-calorie options for consumers to enjoy.
Face-to-face and
electronic communication, trade associations and learning
laboratories.
Customers look to us
for innovative products
that meet consumers’
evolving well-being and
taste preferences.
We are particularly keen to
work with customers that
share our commitment to
sustainability, innovation,
and health and wellness.
Investors
We are traded on the AIM
market of the London Stock
Exchange under the ticker
symbol: PURE.
Public filings, investor
conference calls, annual general meetings.
Investors want a good
return on their investment, a clear trajectory
for continued growth,
and good governance.
We seek investors who see
the potential that stevia has
to transform the food industry and provide social and
environmental benefits.
We are involved with trade
associations and we regularly
participate in food and beverage sustainability conferences
and working groups.
Trade associations,
working groups, social media, individual
meetings.
Non-profit and advocacy organizations are
primarily concerned
that we act responsibly
on social and environmental issues.
We prioritize engagement with groups that
are solution-oriented and
have a strong grounding in
credible science and local
context.
Public
Interest Groups
03
Materiality
PureCircle is involved in every stage of the stevia supply chain: breeding, cultivating and harvesting stevia leaf, extracting and purifying the
glycosides and create great tasting, zero calorie sweeteners and flavors. Our integrated supply chain not only enables us to ensure a reliable
source of stevia leaf and a safe, high quality product, but it also allows us to provide our customers a level of transparency and accountability
across all sourcing regions that is unmatched by any other stevia manufacturer.
Value Chain
Plant Breeding
We strive to optimize stevia yield in all aspects of our operations. Our
Breeding proprietary stevia varieties with
higher sweet glycoside content
unique extraction and purification processes allow us to make use of
each glycoside. We extract up to 95% of the targeted glycosides from
Harvesting
the leaf and convert them into a range of high quality final products.
Working directly with local farmers across
four continents
We are committed to measuring and reporting on our key environmental
impacts and social benefits along the entire supply chain. We completed
Extraction
our first carbon and water footprint in 2011 and have updated our
Producing our own extract to ensure
quality standards are met
calculations each year, spanning farm to extraction, purification and
distribution. In addition, we have assessed water impacts of stevia as
a crop in various growing regions, implemented the stevia industry’s
most robust sustainable agriculture policies, and continue to modify our
practices to mitigate environmental impact across our supply chain. The
results of these efforts can be found throughout this report.
Purification
Purifying steviol glycosides with an
unmatched scale and consistency
Application
Providing formulation expertise to deliver
great tasting products
Finished Product
Supporting consumer communications with
the Stevia PureCircle Trustmark equity.
Materiality
04
How We Determine Materiality
In early 2014, we undertook a materiality assessment to identify and prioritize sustainability issues for the company. While we had many
policies and initiatives already underway—including ambitious goals for energy, waste, water, traceability, and supplier engagement—we
realized that we had not yet formally assessed what issues mattered most to us and to our stakeholders. For this process, we engaged a
sustainability strategy consulting firm to help us review key social and environmental topics. We looked at the following:
• Number of times that this issue arises in our product life cycle. For example, product traceability is an issue at every stage of stevia production.
• Number and type of stakeholders most likely to be affected by the issue. For example, the small-scale farmers who grow our stevia are highly
impacted by our sustainability decisions.
• The importance of the issue to PureCircle’s business success.
The below matrix is the result of our materiality assessment, which attempts to quantify the relative importance of key sustainability issues.
We recognize that sustainability is a dynamic landscape and expect to update this analysis on an annual basis to keep up with emerging
trends and changing expectations.
FOOD SAFETY
BIODIVERSITY
COMPLIANCE
HEALTH AND SAFETY
WASTE
FOOD SECURITY
PRODUCT LIFE CYCLE
IMPORTANCE FOR STAKEHOLDERS
PHILANTHROPY
SUPPLIER ENGAGEMENT
LABOR RIGHTS
GENETIC ENGINEERING
NUTRITION
PACKAGING
SUSTAINABILITY AGRICULTURE
PRIVACY
WATER
LABELING
MIGRANT LABOR
TRANSPORTATION
ENERGY COMPLIANCE
PESTICIDES
CLIMATE CHANGES
IMPORTANCE FOR PURECIRCLE
The results of the materiality assessment were also used to guide the development of this sustainability report. While we have addressed every
issue on the chart, we have chosen to provide more detailed information about the issues in the top right quadrant—those identified as being
most important to both PureCircle and our stakeholders.
ABOUT PURECIRCLE
06
Company Basics
PureCircle is the world’s leading producer of high purity stevia—a natural, no calorie
Location of Operations in 2013
sweetener that provides a great tasting way to reduce calories. Stevia is the perfect
sustainable sweetener to help meet consumers’ growing demand for natural and
healthy food and beverage products.
We are leading the global expansion of stevia as a mainstream natural sweetener
that is grown, processed and delivered in a way that respects people and the planet.
PureCircle’s stevia is not just a no-calorie sweetener, but also a more sustainable one
that integrates environmental and social responsibility throughout our supply chain.
From improving the livelihoods and skill sets of small-scale farmers to minimizing our
carbon and water footprints at our facilities, sustainability is part of who we are and
how we operate.
2013 Product Highlights
Our Vision and Mission
It is our vision to lead the global expansion of stevia as the next mass volume natural
sweetener and encourage healthier diets through the supply of natural, zero calorie
ingredients to the global food and beverage industry. PureCircle is committed to this vision
and has deeply invested in all aspects of stevia from farming, extraction and purification
to R&D, innovation, application support, consumer communication and advocacy. It is our
Since 2011, we have launched 4 new
products and grown our innovation pipeline
to over 20+ new products to address
customer application needs.
We sold stevia products to more than 300
customers around the world, a dramatic
increase in our customer base.
mission to scale stevia as the next natural mainstream sustainable sweetener.
Our Economic Impacts
Additional information about our economic impacts and performance can be found on
the London Stock Exchange website and in our annual reports.
2013 Sustainability Highlights
• PureCircle offers farmers in Paraguay
opportunity to improve income
• PureCircle is a finalist for Fi Europe
Excellence Awards Sustainability
Initiative of the Year
• PureCircle announces ambitious 2020
sustainability goals
• PureCircle helps cut 1.8 trillion
calories from global diet
07
Governance & Compliance
Anti-Corruption
Employees are guided by our gifts and entertainment policy, which is structured to set
clear expectations about legal and ethical business practices. To date, we have had no
reported instances of non-compliance on this issue.
Political Contributions, Lobbying, and Public Policy
Typically, PureCircle does not engage in any direct support for political issues, parties,
or candidates. However, in 2014, we donated $2,000 for the “Chicago for Rahm
Emanuel” mayoral campaign. While we do not have a formal policy on these issues, it
is something we are considering for the future.
Grievance Mechanisms
Employees are guided by our Employee Code of Conduct and Employee Handbook,
which provides detailed information about whistle-blowing and grievance processes.
For More Information
Detailed information on our corporate
governance policies and practices can be
found on our Investors Page, including:
• Board of Directors Biographies
• Board Responsibilities and Committees
•
•
•
•
•
Capital Structure and Locations
Significant Shareholders
Shareholder Rights
Listings and Platforms
Restrictions on Transfer
• Investor Events
In our 2013 Annual Report, detailed corporate
governance information can be found on pages
28 through 37, including:
• Board committee’s roles and 2013
meeting attendance
Non-Compliance
To date, PureCircle has not been subject to any formal allegations, complaints,
lawsuits, or other findings of noncompliance with environmental, community, product,
or governance issues. In 2013, we had two labor-related grievances; both were
investigated and resolved.
• Executive Directors’ remuneration
packages
• Directors’ report
08
Sustainability Management
We are committed to strengthening our sustainability programs as we grow and
expand our offerings and market position. We believe the following five pillars make
PureCircle’s stevia the sustainable sweetener for the 21st century: Promote Healthy Choices
We inspire healthier diets around the world.
Source Responsibly
We work directly with tens of thousands of local farmers to ensure a reliable supply of
ethically and sustainability sourced stevia that positively contributes to the livelihood
of farmers.
Reduce Our Environmental Footprint
We have implemented measures to conserve water, reduce greenhouse gas emissions
and minimize waste at our extraction and processing facilities. Currently, our top
priority is to continue assessments of the carbon and water footprints of our products
and our facilities to help us pinpoint strategic opportunities to further reduce energy
and water use.
Deliver Transparency and Accountability
Our direct management of the supply chain enables us to provide traceability back to
the community of origin and measure our environmental footprints.
Provide Industry Leadership
We are leading the way in developing improved stevia varieties and elevating
knowledge and expertise across the industry.
External Auditing and Oversight
We are active members of Sedex, and our extraction and purification facilities are
regularly audited against the Sedex Members Ethical Trade Audit (SMETA) framework,
which includes:
•
•
•
•
Labor Standards
Health and Safety
Environmental Practices
Business Practices
The auditors tour the factory, interview workers individually and in groups, and review
documentation. At the end of each audit, PureCircle receives a copy of the audit findings.
When the report documents areas of concern, we are able to quickly develop corrective
action plans and get to the root of the issue so that it does not happen again.
Learn More
Interview and podcast with PureCircle’s
Global Director of Sustainability.
PureCircle CEO discusses sustainability at
the Responsible Business Summit.
09
Membership & Associations
PureCircle leads the global expansion of stevia as a mainstream natural sweetener. We have been conducting research and development
aimed at increasing the plant yield through selective breeding of high yield varieties, improved plant propagation techniques and production
practices. We are involved in a number of associations—ranging from memberships to joint programs. Below, we explain a few of our most
important partners.
Memberships and Associations
Global Stevia
Institute
PureCircle was the driving force behind the Global Stevia Institute (GSI) whose mission is to provide leadership
in stevia education and support other industry educational initiatives. The GSI Advisory Board is comprised of
internationally recognized professionals and represents nutritionists, medical doctors and health educators to
ensure that stevia information is accurate and credible.
Michigan State
University
PureCircle has teamed up with MSU, one of the world’s premier horticulture research institutions, to further research stevia plant breeding. The goal of the research is to accelerate the creation of proprietary varieties of stevia
that contain dramatically higher levels of sweetness in the leaf, as well as other improved agricultural properties.
This new research and varietal development are focused on the next generation of steviol glycosides. The joint
breeding efforts between PureCircle and MSU leverage the most modern science for natural, conventional stevia
plant breeding.
S&W Seed of
California
PureCircle’s partnership with S&W, experts in breeding and developing proprietary seed varieties and efficient
harvesting mechanization, is another example of the company’s leadership within the industry. S&W partners with
MSU by testing new seed varieties in the field to assess the viability of large-scale production.
International
Stevia Council
PureCircle is a member of the International Stevia Council, a global trade association, whose vision is to be the
authoritative voice for the stevia industry in promoting the use of naturally-sourced stevia sweetened products.
ENVIRONMENTAL
IMPACTS
11
Environmental Management
We are committed to reducing our environmental footprint by focusing efforts on the highest sources of carbon emissions, pursuing energy
conservation opportunities, and continuing to adopt sustainable agricultural policies across our diversifying agricultural base. We recognize
that our environmental activities must span our entire value chain, which is why we have identified key activities at each stage of the product
life cycle.
1) Farming
• Continued R&D investment to improve leaf yield output and quality.
• Conduct research and field trials to determine the optimal amount of agricultural inputs
including inorganic fertilizers, the main sources of emission in each region.
• Partner with our farmers to optimize the efficiency of all irrigation systems.
• Actively support our farmer partners by facilitating equitable and flexible financing,
providing quality seedlings/cuttings and inputs, and offering training and agronomic expertise.
2) Extraction
• To achieve our objectives, our focus will be on accelerating adoption and demand of
PureCircle stevia. As demand increases, our capacity utilization and fixed emissions
allocated over a larger volume will help us drive down intensity of emissions and energy.
• During the extraction process, heat is required for boilers to facilitate extraction of
glycosides from leaves steeped in water. Along with electricity needed for equipment,
the boiler plant is the biggest source of GHG. We are identifying ways to capture heat
to reduce the need for energy.
• In the next few years, we plan to implement a smart mechanism that will measure
electricity consumption of our equipment in order to further drive down consumption
from inefficient equipment and/or processes.
• We will continue to invest in water and energy efficiency technologies like our continuous
backflow extraction technology that helped us decrease our water use by 33%.
3) Purification
• We are in the process of installing a new energy management system based on ISO
5000 standards, in partnership with the United Nations Industrial Development
Organization (UNIDO).
• We are aggressively moving towards zero waste. In 2012, we installed a new waste
water treatment plant at our purification facility that will bring all effluents to
the highest local standards. With this process, we expect that all the water from
purification will be treated before it is released.
• We are also moving aggressively to reduce landfill waste and plan to have zero
untreated waste sent to landfills by 2014.
Environmental Management
12
Environmental Policy
PureCircle is committed to environmental compliance and conducive facilities for our employees, contractors as well as to the general public
who are affected by our business operations. Senior management shall ensure PureCircle business strategies and operations are aligned with
environmental policy and commit to:
• Conduct operations in accordance with all applicable laws, regulations, and other requirements.
• Anticipate environmental issues as far as practicable and promote appropriate initiatives that support this policy.
• Strive for an incident-free workplace through a high level of employees’ participation and an effective environmental program.
• Eliminate or minimize the harmful environmental impacts to our facilities and the communities in which we operate.
• Continuously improve environmental performances by utilizing practices that protect facilities and the communities.
• Strive for pollution prevention, energy conservation and efficient utilization of resources.
• Provide appropriate environmental related training and motivate employees to conduct their activities in a environmentally responsible manner.
• Review environmental performances, including setting and reviewing of environmental objectives and targets used to promote
continuous improvement, on a periodic basis.
13
Energy Management
We are very cognizant of our energy use—both from an environmental and a financial
perspective and we continuously seek out ways to maximize our energy efficiency.
As a part of our 2020 sustainability goals, we want to reduce energy intensity across
the product life cycle by 20% (against the 2011 baseline). By the end of 2013, we
have already exceeded this goal by reducing energy intensity by 42%.
Our most ambitious energy management project to date involved converting bio waste
to energy. In 2012, we began construction on a new biogas facility, which would
convert stevia leaf residue from our China processing facilities into energy. Initial
projections had indicated that when the facility was fully operational, it would convert
up to 31,000 metric tons of leaves residue into approximately 6 million Kwh of energy
each year. Unfortunately, a dispute between the biogas company and local utility
Our biogas facility, currently pending final approval by
local authorities.
companies has kept the plant from opening. In the meantime, we are making good use
of bio waste by converting it into organic fertilizer for our farmers.
Other energy conservation initiatives include process improvements, optimizing
machine efficiency and eliminating energy waste.
Energy Consumption Within the Organization (Scope 1 and 2)
Units
2011
2012
2013
Coal
Tons
8,459
7,352
12,530
Diesel
Liters
1,953,583
1,370,968
1,452,007
Electricity
KWH
15,212,707
11,267,876
18,210,538
This chart provides a summary of our key energy use over the last three years. It calculated facility-specific data for our extraction plant in China and our
purification plant in Malaysia. We do not currently track energy use at our support facilities, such as our corporate offices or sales offices.
We do track energy use at our farms, but do not disclose farm-specific energy use.
14
Climate Change
We conduct an annual greenhouse gas (GHG) inventory that covers our entire supply
chain—from farm to distribution. This process helps us spot trends in energy use and
identify areas to focus our carbon-reduction activities. In 2013, we were responsible
for 68,722 metric tons of greenhouse gas emissions.
In 2012, we set an ambitious goal to reduce the intensity of our carbon emissions
by 20% on a sweetness equivalence by 2020 based on our 2011 baseline numbers.
We are on schedule: by the end of 2013, we had reduced the carbon footprint of our
product by 4%.
Climate-Related Risks and
Opportunities
We report annually to the Carbon Disclosure
Project about our GHG emissions and our
approach to climate change. For more
detailed information about our assessment
of climate risk and opportunities, see our
most recent CDP report.
Note: While our farms are technically considered Scope 3 (upstream emissions), we
are considering farm-related emissions to be under PureCircle’s direct control because
of our extensive oversight. We have therefore included farm-related emissions in our
Scope 1 and Scope 2 emissions as if we owned the operations.
GHG Data Sources
Stage of Supply Chain
GHG Emissions Calculated
Farming
GHG associated with the manufacture of all materials used on-farm (fertilizers, pesticides and
herbicides), energy consumption on-farm and N2O emission from fertilizer application.
Materials
GHG emissions associated with the manufacture of materials used in the extraction and purification facilities (excluding stevia leaf, which is accounted for under farming).
Transport
GHG emissions arising from the transportation of all materials to both manufacturing facilities (including transportation of leaf to the extraction facility and stevia extract to the purification facility).
Processing
GHG emissions arising from energy consumption, water consumption, refrigerant gas loss and
waste disposal at the extraction and purification facilities.
Packaging
GHG emissions associated with the manufacturing of packaging materials.
Distribution
GHG emissions arising from the transportation of the product to the destination country.
Climate Change
15
Direct (Scope 1) Emissions tCo2-e
‘000 tC02 -e
Annual Carbon Footprint Farm-to-Gate
Facility
2011
2012
2013
Farms
5,264
2,618
6,882
Extraction
12,595
10,914
19,016
Purification
5,080
3,703
3,866
Total
22,938
17,236
29,764
Indirect (Scope 2) Emissions tCo2-e
Facility
2011
2012
2013
Farms
45
57
207
Extraction
6,591
3,755
7,703
Purification
4,600
4,300
5,935
Total
11,236
8,112
13,846
2013 Carbon Footprint
Supply Chain (Scope 3)
Emissions tCo2-e
Facility
2011
2012
2013
Farms
6,938
2,360
6,285
Extraction
12,336
6,161
15,109
Purification
2,597
2,062
3,631
Final
Distribution
124
161
146
Total
21,996
10,743
25,172
16
Water Conservation & Efficiency
Even though the water footprint of PureCircle high purity stevia products is already lower
than other mainstream natural sweeteners, it is PureCircle’s endeavor to continuously
reduce water impacts across its supply chain from farm to extraction and purification.
It is our policy to comply with all applicable water withdrawal and discharge laws
including obtaining required permits, and to assess water impacts prior to developing
new farming and production regions.
Managing Efficient Irrigation and Crop Residue
When working with our farming partners, we employ the following policies and procedures:
• Management practices should be adopted to ensure that water extraction does not cause
adverse effects on groundwater or water bodies.
• Farms should have a water conservation program that ensures the rational use of water
resources and protection of water resources.
• The farm must not deposit any organic or inorganic solids, including domestic or
industrial waste, construction debris or rubble, soil and stones from excavations,
rubbish from cleaning land, or other materials into natural water bodies.
• To irrigate effectively, the right amount of water has to reach the right place at the
right time. Irrigation water can be optimized by using more efficient irrigation systems
or by improving the scheduling of irrigation.
• Producers should use sprinkler and micro-irrigation systems over gravity systems
whenever possible.
• Farmers should rely on rainwater to the extent possible. Supplemental irrigation
should only be scheduled as needed. Use of soil or plant measurement systems to
assess the need for supplemental irrigation is recommended.
• Crop residue management conserves some of the remains of a previous crop on a field
and helps reduce soil erosion, captures and retains rainwater, and reduces runoff.
Conservation tillage complements crop residue management efforts and reduces the
intensity of soil-disturbing operations. Farmers should implement these practices in
tandem to reduce irrigation needs, soil erosion, and runoff.
• Irrigation systems should be inspected on a regular basis. Any leaks should be
repaired as soon as practical.
Benefit of PureCircle’s patented
extraction system
Typical water consumption for every
metric ton of leaf with traditional
extraction technology is around 20
metric tons (20:1).
PureCircle’s patented backflow
extraction technology uses only 7-8
metric tons of water for every metric
ton of leaves (7-8:1). The estimated
savings or water use is almost a third of
traditional extraction methods.
In 2012, PureCircle completed the
industry first farm-to-gate water footprint.
The results showed that the footprint is
up to 96% lower than that of traditional
mainstream natural sweeteners.
Water Conservation & Efficiency
Protecting Water Rights
We have instituted policies to protect water rights and reduce impacts. Prior to
developing a new region for stevia crop or high purity stevia production, an assessment
of the water rights and resources within the area’s watershed is conducted. The
assessment includes consultation with government officials, water or watershed
experts and local stakeholders, mapping of proposed site, list and location of receiving
bodies of water, legal and cultural water rights within the watershed, required permit,
and description of recommended precautionary measures and practices. If any water
related concerns are identified on or adjacent to the new planting areas:
• Recommended measures and practices are integrated into the development and
operation plans.
• PureCircle employees and contractors are trained on the precautions that should be
taken during site development and operations.
• Management ensures that any legal requirements relating to the use or protection of
water bodies are met.
17
In 2013, The Coca Cola Company and
PureCircle concluded a comprehensive
water footprint sustainability impact study
of stevia crop growing around Purecircle’s
growing regions in Kenya, Paraguay and
China. The findings have been used
to understand the water stress and
provided additional information about the
implications of stevia as part of PureCircle
and TCCC’s supply chain. It has enabled
both companies to identify hotspots,
create best practices, and detect potential
improvement areas.
18
Waste & Effluents
PureCircle aims to minimize waste from its operations to the maximum extent possible. This objective will be achieved by minimizing unnecessary packaging from incoming materials and reusing, recycling, or otherwise diverting waste from landfills.
Waste Minimization Strategies
To the extent possible, we work with suppliers and shippers to minimize packaging or
use recyclable packaging (e.g. corrugate) on incoming materials. Shipping pallets are
reused when possible.
We are in the process of setting up recycling programs at all of our facilities. Where
appropriate, we work with waste haulers, recyclers, or service providers to collect and
transport recyclables to a legitimate recycler. Common materials recycled include
corrugate, paper, metal, plastic or glass containers, and ink cartridges.
We divert waste materials from landfills by using service providers that provide composting,
energy recovery, or other processes that use agriculture or other wastes as raw material.
The use of open waste dumps and open-air burning of waste is not permitted.
Wastewater Management
We operate our own wastewater treatment facilities to ensure the effluent meets
international standards to preserve the quality of the receiving water bodies. In
Focus on Green Waste
It is PureCircle’s endeavor to reduce waste
in all parts of our supply chain. In 2009,
we worked with a third party utility supplier
to build a biogas plant on our property. The
idea was to convert spent leaf into energy
after the requisite glycosides were extracted
from the leaf. Due diligence was performed
and expectation was to convert energy
equivalent to 75% of our extraction plants,
energy needs.
However, in 2012, the biogas plant company
and the grid utility got into a dispute that has
left the plant unoperational for the time being.
In the meantime, we have decided to convert
leaf waste into organic fertilizer. Whatever
biomass could not be converted to fertilizer
was converted to animal feed, maximizing the
sustainable value of the entire leaf starting
from the farm.
Water Discharged (m3)
Treated to
local standard
addition, we will soon install a reverse osmosis system to purify our wastewater,
recycling an estimated 45% of water used at our China facility. Together, these system
upgrades will result in a total annual water savings of more than 500,000 liters.
Waste Generated (tCo2-e)
2011
2012
2013
Landfilled
61
61
80
Recycled
13,010
1,995
10,996
Total
13,071
2,055
11,076
The Waste Generation chart provides a summary of waste generated for our extraction plant in
China and our purification plant in Malaysia. The Organic Waste chart reflects green waste that
has been captured and transformed into fertilizer from our farms and extraction facilities. We do
not currently track waste at our support facilities, such as our corporate offices or sales office.
2011
214,738,040
2012
50,170,560
2013
218,791,647
Organic Waste converted to
fertilizer (tCo2-e)
2011
4,343
2012
429
2013
3,502
19
Land Use & Biodiversity
PureCircle supports the protection of land that has high conservation value or is critical habitat for protected species. We do not use stevia
that has been grown on land that has been converted from forestry or conservation land. In Kenya and Paraguay, we encourage farmers to use
pasture-land (as dairy is a less profitable product) or land that is currently used to produce food, respectively.
Stevia is a high value crop that can be grown on small plots of land, eliminating the need to do large scale land clearing. In addition, stevia’s
high yield per acre and strong sweetening potential makes stevia more productive for every acre cultivated.
2013 Farming Impacts
Location
# of farms
Hectares under Cultivation
Average farm size
Total
17,427
4,750
0.28 Ha
Approach to Land Rights and Conservation
It is PureCircle’s policy to avoid conversion of high conservation natural ecosystems and to protect riparian areas, wetlands, or other sensitive
habitats and ecosystems. We have procedures in place to ensure land rights are respected and to prevent damaging expansion or new
development into areas of critical biodiversity.
We follow the Forest Stewardship Council’s High Conservation Value Area (HCVA) categories when
determining whether land has high biodiversity risk:
• HCVA 1 — Areas containing globally, regionally or nationally significant concentrations of biodiversity values.
• HCVA 2 — Globally, regionally or nationally significant large landscape level areas.
• HCVA 3 — Areas that are in or contain rare, threatened or endangered ecosystems.
• HCVA 4 — Watershed protection or erosion control areas.
Land Assessments
When non-agricultural land is converted to stevia production, proper assessment should be made to identify HCVA and to develop a mitigation
plan to minimize any negative impacts to these areas.
Prior to any conversion of natural habitat to stevia production, an assessment of the land use rights and conservation value should be
undertaken. The assessment should include consultation with government officials, relevant experts and local stakeholders, mapping of
proposed site and adjacent properties, legal ownership and rights of the subject and adjacent lands, description of the conservation values,
impacts of stevia production on these conservation values, and description of recommended precautionary measures and practices, including
buffer zones or otherwise restricted areas.
Land Use & Biodiversity
20
Land Rights and Water Rights
PureCircle should not develop or otherwise impact land that would violate another entity’s land rights or where dispute of water rights exist.
Management should ensure that any legal requirements relating to the protection of the HCVA are met.
Land Development Prioritization
Areas that contain identified conservation values of global, regional or local importance should not be converted, and the use of areas that
pose the lowest risk to conservation values should be given preference. The location and status of HCVA located in existing plantations or that
could be affected by plantations should be documented and communicated to PureCircle employees and contractors.
Training
PureCircle employees and contractors are trained annually on the location and status of HCVA that exist in the plantation. They also receive
training on appropriate practices to minimize direct or indirect impacts on the HCVA.
Protection of Threatened or Endangered Species and Wild Animals
It is PureCircle’s policy to provide habitat corridors and protection to threatened or endangered plant and animal species found on or adjacent
to our operations. It is also PureCircle’s policy to prohibit the capturing, removing or trafficking of wild animals.
Prior to any conversion of natural habitat to stevia production, an assessment of the animal and plant species should be undertaken. If any
threatened or endangered species are identified on or adjacent to the new planting areas:
• Recommended measures and practices should be integrated into the development and operation plans.
• PureCircle employees and contractors should be trained on the precautions that are necessary during site development and operations.
• Management should ensure that any legal requirements relating to the protection of the threatened or endangered species are met.
• PureCircle employees and contractors should be trained annually on restricted access areas (if applicable) and on appropriate practices to
minimize direct or indirect impacts on the species. The training should be documented.​
21
Transportation & Logistics
While transportation impacts account for only a small fraction of our overall environmental footprint, we are committed to tracking and minimizing
our logistics impact.​We expect that as our operations continue to scale and we ship raw materials and finished goods to several points, we will have
to increasingly focus on enhancing efficiencies by working with our transportation vendors in the future to minimize our impacts.
Transporting Raw Materials and Packaging
Material
Discussion
Packaging
Materials
We used 169 tons of packaging materials, including paper cartons, plastic bags, foilbags, plastic drums, and
plastic pallets.
Raw Materials
We used 23,742 metric tons of raw materials, the vast majority of which was stevia leaf. Other raw materials
included starch, activated carbon, ethanol, and other processing aid stabilizers.
In 2013, the transportation-related emissions associated with raw materials and packaging was 161 tCO2-e and 7.8tCO2-e, respectively.
Transporting the Finished Product
Transit Mode
Discussion
Truck
We use trucks to move our final product from the purification and packaging facility to the nearest seaport for
shipping to its final destination.
Sea Freighter
We send our product around the world in shipping containers with distances ranging from 1,700 miles to almost
24,000 miles.
In 2013, emissions associated with the final distribution of our products (from final processing to the country of destination) were
147 tCO2-e.
WORKPLACE
IMPACTS
23
Human Capital
Effective management of our workforce is key to our company’s success and a
foundation for good stakeholder relationships. We have extensive policies and programs
in place to ensure that our people understand and are able to meet our expectations
around social and environmental responsibility.
While each location has the freedom to create its own policies, we abide by a common
set of standards that ensure all employees are treated fairly and equitably.
For example, the employee handbook from the Kenya location provides more detailed
examples on specific workplace policies and guidance on topics including:
Recruitment
Orientation, medical examinations, probation and confirmation, promotion, transfer,
working hours, and dress code
Separation
Retirement, retrenchment, termination, and expiration of contracts
Compensation and Benefits
Salary, retirement funds, social security, holidays, vacation and sick leave, maternity
and paternity leave, other leave scenarios, medical benefits, reimbursements, loans,
overtime, and telephone/internet usage
Training and Development
Performance management, job classification, staff development and training, study
leave, higher education, and professional associations
Discipline and Grievance Issues
Grievance resolution, corrective action guidelines, documentation, grounds for
termination, and harassment
Health and Safety
Accidents and incidents, safety gear, and lockers/changing rooms
The PureCircle Kenya location Employee
Code of Conduct sets expectations
for responsible workplace practices.
It recognizes workers’ rights and
responsibilities and outlines the
company’s disciplinary process in the
event of non-compliance. The Code
includes provisions on:
•
•
•
•
•
•
•
•
•
•
•
Business practices
Working conduct
Conflict of interest
Gifts and entertainment
Worker rights
Personal conduct outside work
Harassment
Misuse of company assets
Drug-free workplace
Serious illness and disability
Whistle-blowing
Human Capital
Management of Labor-Related Grievances
Workers in our processing facilities are allowed and encouraged to report any problems
or concerns to their immediate supervisor, manager or Human Resources department
personnel. In 2013, we had two labor-related grievances filed at our supplier farms
through our grievance mechanism. Both were addressed and resolved.
Third Party Audits
Our facilities are regularly audited by third parties on labor practices and human rights
issues. As with all audits, it is not uncommon to find opportunities for improvement
and we work relentlessly to address issues as they are identified. Fortunately, the issue
of non-conformance when determined by an auditor can often be resolved very quickly
and efficiently. For example:
• In 2013, an audit found that there were insufficient pharmaceutical products in the
first aid kit located in the loading department. We added the necessary products to the
first aid kit, and the next audit determined that the issue was resolved.
• In 2013, an audit found that emergency contact numbers were not available and
posted. We immediately rectified the situation and the next audit deemed the issue closed.
Other findings are more challenging and require that we change a process or system,
or work with another organization. For example:
24
Issues Identified During
3rd Party Audits
Topic
2013
Management systems and
code implementation
1
Employment
freely chosen
0
Freedom of
association
0
Safety and hygienic
conditions
9
Child labor
0
Wages and benefits
8
Working hours
4
Discrimination
0
Regular employment
1
• In 2013, one of our audits found that several foreign workers, hired through an
outsourcing agency, were not receiving complete payslips. We worked with the
outsourcing agency to ensure that proper documentation was provided to these
workers, and in 2014 the auditor determined that appropriate action had been taken.
Sub-contacting and
homeworking
0
Harsh or
inhumane treatment
0
We continue to develop processes and systems to ensure that good labor practices are
Entitlement to work
0
upheld in every instance, for every worker, in every area of the company.
Focus on Third-Party Audit Interviews
“The management was cooperative throughout the process of the audit. All
requested documents were provided in a timely manner, all necessary areas were
allowed access for tour and a private room was arranged for employee interviews.
In the closing meeting, the management appeared receptive to the audit result
and did not raise any negative feedback.” – 3rd party audit of our Chinese
operations, July 2013
Human Capital
25
Unionization and Collective Bargaining
Our extraction operations in China are the only area of our company with unionized employees (100% of non-management workers belong to
the union). We have a union committee with seven members that engages regularly on issues related to pay and benefits, working conditions,
and health and safety issues.
Overtime Challenges
At our extraction facility in China, we follow the local laws and regulations on overtime hours. However, some of our customers’ social
standards have a lower threshold for overtime, limiting further the number of hours that a person can work in a given week. We can
meet our customer requirements by adding another shift, but that will negatively impact workers’ salaries by reducing the total numbers they are allowed to work—something they have told us they do not want to do. Adding another shift while also increasing salaries
to maintain current payments would dramatically increase our labor costs—something that our customers do not want.
Finding the right balance between meeting customer expectations and worker expectations is an ongoing effort, and we look forward
to further engagement with both groups of stakeholders to better address these issues.
26
Labor Practices & Diversity
It is PureCircle’s policy to comply with all labor laws and to promote International
Labor Organization (ILO) Decent Work Core Labor Standards. The core labor standards
are drawn from the most fundamental of the ILO’s labor conventions.
Freedom of association and the right to collective bargaining are respected. The right
to organize and form employers’ and workers’ organizations is the prerequisite for
sound collective bargaining and social dialogue. Sound collective bargaining practices
ensure that employers and workers have an equal voice in negotiations and that the
Keeping Women in the Workforce
We offer paid maternity leave for women
and encourage them to return to us when
they are ready to rejoin the workforce. At
our extraction facilities in China, 18 women
have taken advantage of parental leave
between 2011 and 2014:
outcome will be fair and equitable.
• 3 women are currently on leave
No forced labor is permitted. Forced labor is defined as “all work or service that is
• 14 women returned to work after leave
exacted from any person under the menace of any penalty and for which the said
person has not offered himself voluntarily.” This includes prison labor, indentured
(12 of whom were still employed with us
a year after their return)
• 1 woman did not return
labor, and bonded labor.
Child labor shall not be used. Processing facility workers should be no less than 15 years
the compulsory age to be in school. Farms cannot employ children to the extent that
Workforce by
Region and Gender
employment would interfere with the child’s schooling. Moreover, children should not
Female
Male
Asia Pacific
Region (APAC)
138
542
Europe, Middle East,
and Americas (EMEA)
13
17
Total
151
559
of age (or the legal minimum age if different) and, where laws require, not younger than
conduct hazardous work.
No discrimination is practiced. Freedom from discrimination is a fundamental human
right. Workers should not be discriminated against based on their gender, age, race,
religion, or any other characteristics that do not pertain directly to their work performance.
Migrant Labor
Workforce by Age
At PureCircle, we understand that poor treatment of migrant labor can be an issue
30
Under
to
30
50
in the agriculture industry, and we are doing our best to make sure that this problem
does not arise at PureCircle. In our own manufacturing operations, migrant workers are
employed at our Chinese extraction facility (15 personnel) and our Malaysian purification facility (11 personnel). We make sure that migrant workers receive the same
benefits as the other employees, and are subject to the same rules, responsibilities,
and privileges. In addition, we provide housing and transportation benefits to migrant
workers above and beyond what local employees receive.
Over
50
Asia Pacific
Region (APAC)
212
445
47
Europe, Middle East,
and Americas (EMEA)
4
19
8
Total
216
464
55
27
Health & Safety
Health and Safety Policy
PureCircle is committed to provide healthy, safe and conducive facilities for our employees,
contractors as well as to the general public who are affected by our business operations.
Senior management shall ensure PureCircle business strategies and operations are
aligned with our health and safety policy and commit to:
• Conduct operations in accordance with all applicable laws, regulations, and
other requirements.
• Anticipate health and safety issues as far as practicable and promote appropriate
initiatives that support this policy.
• Strive for an incident-free workplace through a high level of employees’ participation
and an effective health and safety program.
• Eliminate or minimize the health and safety harmful impacts to our employees,
contractors, general public and facilities in which we do businesses.
• Continuously improve health and safety performances by utilizing practicable practices
that protect employees, contractors, general public and facilities.
• Provide appropriate health and safety related training and motivate employees to
conduct their activities in a healthy, safe and responsible manner.
• Review health, and safety performances, including setting and reviewing of health and
safety objectives and targets used to promote continuous improvement, on a periodic basis.
Focus on Health and Safety Committees
Each of our sites has a health and safety
committee made up of employer and
employee representatives, and chaired
by a senior manager at the facility. In
our Malaysian processing facility, for
example, the committee is headed by the
General Manager, with seven employer
representatives and eight employee
representatives. The committee members
come from all areas of the facility,
including health, safety, environment
and community (HSE&C), sales, loading,
quality assurance, maintenance, warehouse
operations, engineering, purchasing,
logistics, and human resources.
Health & Safety
28
Safety Training
Each of our processing facilities has dedicated health and safety managers and support staff. These personnel receive ongoing training and
provide oversight to ensure that appropriate measures are taken on the facility floor to keep workers safe and healthy. At our production facilities,
new employees go through three levels of safety training: company level, workshop level, and team level. This process ensures that each
employee understands the breadth and scope of our commitment to health and safety, but also the very specific safety risks and practices of
his or her job duties. We conduct regular emergency drills to test and improve workforce readiness to respond to safety incidents.
Ongoing Monitoring
Since the beginning of 2013, all workers at our production facilities are required to take an annual occupational health examination, which
helps us to detect and resolve any health and safety concerns efficiently.
Safety Factors
2011
2012
2013
Fatalities
0
0
0
Lost time incidents
13
9
13
Lost time/men days
160
136
531
Near Misses
(Incidents with no lost time)
1
1
4
Key Safety Concerns
Location
Farms
Extraction
Purification
Concerns
Steps Taken
At our farms, the key safety concerns
are related to the risk of injury in the
warehouse when working near the baling
machines. The facilities can be dusty
and noisy, and the fields can be slippery
during wet weather.
We emphasize the use of protective gear for all employees working
in potentially risky areas. We have first aid stations at all major
operations in the fields, warehouses, and offices. Spot checks are
done by department heads to ensure compliance with all health and
safety policies and expectations. First aid training is provided to
department representatives, and standard operating procedures are
in place for all machinery, with training provided as needed.
At the extraction phase, the key safety
risks are related to dust and noise.
Employees must wear personal protective equipment when exposed
to safety risks. Since early 2013, dust and noise detection are
performed and evaluated. We have also taken steps to improve the
working environment through upgraded ventilation, better sound
insulation and noise reduction measures.
During purification, the key safety concern
is related to the use of processing aids.
We carefully monitor safety guidance for all processing aids entering
our facility, to ensure that we take appropriate precautions. Employees
are trained on safe handling procedures and receive ongoing reinforcement to keep safety front of mind. We are regularly audited for health
and safety and work quickly to resolve any issues that occur.
COMMUNITY IMPACTS
30
Philanthropy & Charitable Giving
While our primary focus is on strategic investment in our farming communities, we also support a variety of national and international
charitable programs.
In 2013, we contributed $10,000 to the Coca-Cola Scholars Foundation, a program that awards college financial assistance to exceptional
high school seniors with outstanding academic records and demonstrated service to the community.
PureCircle was a proud member of the Healthy Weight Commitment Foundation in 2013. This foundation helps to reduce obesity, especially
childhood obesity, by inspiring people to become more active and healthy.
Support for Local Communities in Paraguay
PureCircle is a supporter of the Amigos de las Américas (AMIGOS), a program that supports sustainable community development projects and
youth leadership in Paraguay, the home of stevia.
Since 2009, our involvement with AMIGOS has helped the program support 37 rural communities. The projects led to the development of
reforestation and healthy living programs in 5 communities, development of healthier and sanitary living environments in 11 rural communities,
construction of community gardens and support of education activities that benefited 7,500 children and adults across all rural communities.
31
Food Security
It is PureCircle’s policy to avoid competition for local food security. This policy aims to support a household’s ability to provide physical and
economic access to sufficient, safe, and nutritious food in the future. In addition, such households and countries should have access to food
that fulfills the dietary needs and food preferences for living an active and healthy lifestyle.
Our Approach to Food Security
When agricultural land is converted from primary food crops to stevia production, an assessment of the risk of negative impacts on food
security among the farming community should be conducted.
If an instance of the conversion from agricultural land to stevia production is identified as negatively impacting food security, PureCircle
should develop a mitigation plan to minimize any negative impacts to the farmer’s family and the community’s access to adequate amounts of
nutritious food. For example, setting aside land to carry out household-level food production or sponsoring agricultural support programs and
activities could help mitigate the impacts.
The results of the food security assessment and mitigation recommendations should be communicated to PureCircle’s farm workers, farmer
partners, and buyers. Each site should maintain a copy of the food security assessment report as long as the facility is in operation.
PRODUCT IMPACTS
33
Food Safety & Quality
Food Safety Management Systems
We take our product responsibility obligations very seriously. At each stage of the stevia process—from growing the seedlings to harvest,
extraction and purification, to final packaging and delivery—our first and foremost commitment is to quality and safety. We have extensive
production process control mechanisms in place to ensure that we meet international standards of product quality and safety. Our
management systems are extensive and updated regularly, and our facilities are HACCP, ISO9001, ISO22000, Halal and Kosher certified.
Our processes are guided by a Food Safety Procedures Manual and inspected by internal audits biannually and external audits annually.
In addition, Hazard Control Plans have been established to measure the safety and quality of each process, and Critical Control Points are
identified and monitored in order to ensure the product’s quality and safety.
Quality Assurance monitors all regulatory requirements and updates the systems where necessary. Any changes in the systems are subject
to verification and approval, and will be notified to our customers accordingly. Thus far the systems are implemented effectively and recognized by
internal auditors, external auditors and customer spot auditors.
Traceability
It is PureCircle’s policy to trace stevia leaf production from the farming community to the final product. This policy aims to maintain
traceability of all stevia leaf from farming community to extraction facility. Efforts are also made to maintain traceability to final product on a
batch basis.
Food Safety & Quality
Our Approach to Traceability
In order to ensure our ability to trace stevia leaf production from cradle to gate, we
have instituted the following practices:
• Develop a chain of custody program that establishes documentation requirements and
segregation and data transfer practices.
• Track leaf during transit from a farm/village to PureCircle’s extraction facility.
Reconfirm weight of leaf upon delivery to PureCircle’s extraction facility.
• Segregate leaf during storage at PureCircle’s extraction facility. Track the leaf and its
extract throughout all processes in the extraction and purification facilities.
• Establish a system to document these steps in a credible and audit-able manner.
Appropriate PureCircle employees and contractors are trained annually on traceability
processes and protocols. The trainings are documented, along with leaf and extract
transport, transaction, and inventory documents.
Genetic Modification
The key sweetening agents in the stevia leaf are steviol glycosides, which can be 300
times sweeter than sugar. The extraction of high purity glycosides from stevia leaf is
a natural water-based process and does not in any way alter the product that nature
has provided in the leaf of the plant. No genetically modified plants are used in the
production of PureCircle’s range of sweeteners or flavors.
Our Approach to GMOs
It is PureCircle’s policy to avoid the use of transgenic materials in our stevia crops and
to prevent accidental introduction of any transgenic materials at the farm. If transgenic
seed or seedlings are being used in nearby farms, we take the following steps:
• Selection of growing area is to be done based on careful evaluation to prevent
accidental introduction of transgenic materials.
• Cooperate with neighbors and regulatory or conservation authorities to ensure stevia is
not grown adjacent to any non- GMO crops if possible.
• In case of identification of any GMO crops in region that cannot prevent harmful
introductions, identify immediate steps to migrate out of region if possible and prevent
any mixing.
PureCircle employees and contractors/farmers are trained annually on the migration
risks and risk minimization plan, with documentation of training records and a Biosafety
Clearinghouse as established under the Cartagena Protocol on Biosafety (as applicable).
34
Focus on Product Innovation
In the 2013 year, we greatly expanded our
lab infrastructure in the United States,
China and the UK. It has enabled us to
expand our execution of PureCircle stevia
3.0™ which offers tailored sweetening
solutions blended to fit any application.
Rather than providing ‘one-size-fits
all’ stevia sweetening, we have learned
that to get the best stevia-sweetened
product, a blended approach can be the
answer. Knowing the particular stevia
ingredients that work best in specific
food and beverage matrices, allows our
product developers achieve deeper calorie
reductions with better taste profiles than
ever before.
We are delivering this new approach through
an extensive side by side development
program with our customers called
PureCircle University. In 2013 we held over
70 PureCircle University programs around
the world, partnering with our customers to
develop the right concepts and formulations
to bring to market.
35
Health & Nutrition
With obesity and diabetes growing at alarming rates globally, consumers are looking
to reduce calories and sugar in their foods. Consumers are also looking to eat more
natural foods. In the past, it has been extremely difficult to create a product that
caters to both of these consumer needs without compromising taste.
A fundamental part of PureCircle’s mission is to encourage healthier diets around the
world through the supply of natural, healthy, zero calorie sweetening ingredients to the
global food and beverage industry. Stevia is a safe way to produce high-quality, lowcalorie food and beverages without sacrificing the joy of sweet.
Caloric Impact
Since high purity stevia sweeteners are metabolized by the human body in a way that
has almost no caloric impact, even partial replacement of caloric sweeteners with
stevia can have a significant caloric reduction benefit.
Since we started monitoring in 2006, we have supplied enough stevia to help the
industry achieve a reduction of approximately two trillion calories in food and beverage
products. In 2013 alone, we supplied enough stevia to enable a reduction of 500
billion calories from global diets.
The pace at which we are helping the food and beverage industry moderate calories is
increasing at a significantly faster rate than we anticipated. As a result, we now have
the capability to help the food and beverage industry reduce up to two trillion calories
per year. This positions us well to achieve our cumulative calorie footprint reduction
goal by 2020.
Did you know?
Sugar contributes up to 55% of the nonpackaging GHG impact of a carbonated
soft drink in Europe and up to 32% in
the United States. A 30% reduced calorie
drink sweetened with PureCircle stevia can
help achieve a 22% reduction of the GHG
from added sugars.
If the entire carbonated soft drink market
replaced 15% of its added sugar with
PureCircle stevia, we could save 616,000
metric tons of greenhouse gases each year.
But that's not all—it would also save 730
billion liters of water.
36
Product Life Cycle Impacts
Stevia is a natural, no-calorie sweetener that provides a great tasting, mainstream replacement for caloric sweeteners. The key sweetening
agents in the stevia leaf are steviol glycosides, which can be 200 to 350 times sweeter than sugar and have the potential to greatly lower
environmental impacts of food and beverage products.
PureCircle is pioneering the next generation of stevia with its improved taste profiles, greater customer acceptance, and positive environmental and
social ecosystem impacts, which will allow stevia to be the sustainable mass scale sweetener of choice in the 21st Century. Did
Stevia’s Carbon Footprint
PureCircle stevia has a lower carbon and water footprint than other natural
mainstream sweeteners. In fact, the carbon footprint of PureCircle sweeteners is
estimated to be:
• 60% lower than other stevia sweeteners,
• 55% lower than beet sugar,
• 79% lower than high fructose corn syrup and
• 29% lower than cane sugar
Stevia’s Water Footprint
Not only does PureCircle stevia have a lower carbon footprint than comparative
sweeteners, it also has a lower water footprint:
KgCo2-e/kg SE*
Comparative Carbon Footprints
• 92% lower than beet sugar
• 94% lower than high fructose corn syrup
1,410
1,410
1,258
What’s Behind Our Claim?
other Stevia estimated
• 96% lower than cane sugar
We undertook a product life cycle assessment (LCA) study to better understand
968
785
and calculate the energy, water, and carbon footprint of our stevia products in
FY2011. We published the results, including a comparison to industry data on
comparative sweeteners. We conducted a second carbon footprint in 2012 and
our most recent results from 2013 shows improvement from our 2012 data for
purecircle
stevia (2012)
Liters/kg SE*
Comparative Water Footprints
energy, water, and carbon footprints.
The study was conducted by independent LCA experts, who used
internationally-recognized standards to conduct the research and make product
category comparisons. The result? We are confident in our claims that our stevia
products are an eco-friendly alternative for consumers to enjoy. Read the full
report here.
*Sweetness Equivalence
37
Customer Communications
Communicating about Stevia
Our company has supported the development of the Global Stevia Institute (GSI), the
industry’s leading stevia advocacy body. GSI’s goal is to provide consumers and other
stakeholders with science-based information about the safety, quality, and market for
stevia products.
Communicating about PureCircle
We own or control vast portions of our supply chain from the farm to product delivery.
This vertical integration allows PureCircle to measure and communicate the impact on
ecosystem, environment and consumer health.
We will continue to enhance processes across our integrated supply chain to communicate
our sustainability progress to all our stakeholders including disclosure through:
• Our annual sustainability reporting
• Sedex sustainability audits
• Carbon Disclosure Project (CDP) reporting
Product Labeling
We carefully monitor rules and regulations around product labeling and are in
compliance with all relevant guidance.
Approval of stevia for use as a sweetener in food and beverage products has continued
to expand into new markets around the globe and the stevia PureCircle Trustmark
program has also expanded over the past year. The stevia PureCircle Trustmark
continues to provide a strong base of trust and source of consumer communication
around stevia for PureCircle customers as part of their brand launches.
Harnessing new market insight studies and continued market intelligence, the stevia
PureCircle Trustmark program not only supports customers in communicating key
consumer messages but also helps ensure they understand the correct way to label
stevia and describe it in key markets with specific, local regulatory guidelines.
Privacy and Confidentiality
We do not collect personal information
about consumers other than data that
is provided to us through social media
statistics—such as Facebook “likes”—or
information that is voluntarily disclosed
by individuals who contact us directly for
support or questions.
We do not have a formal data privacy
policy, although we do have strict
controls on access to customer
information within our facilities. To
date, we have had no data privacy or
confidentiality complaints.
SUPPLY CHAIN IMPACTS
39
Suppliers Relations
Having an integrated supply chain provides many benefits. It allows us to continually innovate at all stages of our supply chain to ensure
we bring the best tasting stevia extracts to consumers. And it helps us drive down inefficiencies, reduce our overall environmental impacts,
enhance benefits to the wider socioeconomic system and maximize our potential benefits to public health.
Good Labor Practices in the Supply Chain
PureCircle recognizes the challenges involved in detecting and correcting violations of applicable laws and labor standards where the
company does not have direct control, especially in a small holder farm setting. We also recognize that we have an obligation to address any
issues that may arise and that steps can be taken to promote lawful and ethical labor conditions.
To this end, on an annual basis, PureCircle field teams should clearly communicate PureCircle’s policy and procedures to all PureCircle
employees, contractors, and suppliers. This communication should include adequate description of decent work standards, labor laws, and
the process for reporting confirmed or suspected violations.
Buyers who purchase stevia leaf from producers should convey PureCircle’s policy to the producers. Any confirmed or suspected violations
of these procedures should be reported to an HR Manager as soon as practical. All reported violations shall be investigated, and corrective
actions taken, as appropriate.
Focus on Women
We recognize the powerful impact that we can have by working with women entrepreneurs, business owners, and farmers. That’s why we place
priority on cultivating relationship with woman-owned suppliers. Most of the independent small holding farmers that we work with are family
run with both women and men contributing equally.
% of Female Farmers estimated in 2013
% of Women
Women in #’s
China
45
6,615
Kenya
60
1,202
Paragauy
50
700
Suppliers Relations
40
41
Working with Farmers
Helping farmers become more successful by increasing yields and incomes is at the core of our business strategy. Close to 18,000 farmers
across four continents were part of our supply chain in 2013. We place great importance on working very closely with them to ensure their
success. This focus ranges from providing them quality seedling or cuttings, as well as materials and agronomic know-how to successfully cultivate stevia plants. We also, in many regions, guarantee incomes for farmers at the end of season to help them continue to invest and grow
stevia successfully. Because we work so closely with individual farmers, we understand the need for financing and support them with access
to quality materials, resources and micro financing. We support farmers’ ability to remain food self-sufficient and, thus, encourage them to
limit stevia production to a third of their land area.
In China
We are pioneering a unique program in which we provide close to RMB 22 Million
(US$3.2 million) through building of free nursery greenhouses, free cuttings, training
to co-operatives and a guaranteed minimum price to protect farmers’ interests.
In Kenya
We promote the self-reliance of farmers by providing them with their first stevia
cuttings and training on how to breed and grow seedlings to meet their future needs.
Over 300 farmer-owned nurseries have been so successful that they now sell seedlings
to other farmers.
In Paraguay
We operate two major nurseries and provide all seedlings to the farmers—at
discounted rates to be paid after their crop is harvested. PureCircle’s investment in
the nurseries, and continued interaction with the local farmers, provides the farmers
assurance that we are investing in—and committed to—a local stevia supply.
Working With Farmers
Financing
We work with a micro-financing company in Paraguay to provide farmers access to
loans at discounted rates with flexible payments to accommodate agricultural cycles.
Dozens of individual farmers have started building their own irrigation systems, often
resulting in a 30-40% higher yield of stevia. This is significant considering a family
can increase its income as much as 44% by installing irrigation—and up to 66% when
farmers use higher quality seedlings such as those PureCircle provides.
Our Kenya team has partnered with two micro-finance organizations to facilitate the
recruitment of farmers who meet a minimum set of skills and to establish financing
mechanisms. Through PureCircle’s partnership and guidance, the micro-finance
organizations have developed terms that enable successful repayment, such as a twoyear payback period, low interest rates and a guarantee that the financial organization
does not deduct more than 30% of gross proceeds from any one payment. PureCircle
Kenya has organized just short of $1 million of micro financing where the microfinance companies provide the loans for 2,200 farmers.
Farmer Health and Safety
It is PureCircle’s policy to promote the use of personal protective equipment when
applying processing aids. PureCircle also encourages the proper use, storage, and
disposal of processing aids. Potable water and hand washing facilities should also be
made available. This policy aims to protect farmer partners and the environment from
overexposure to hazardous processing aids.
Use of pesticides and other processing aids should be avoided or minimized. Only
pesticides that are registered nationally for the crop being treated should be used.
Pesticides that are WHO Class I or listed in the Stockholm Convention or Rotterdam
Convention should not be used. Any exceptions should be phased out, and their use
justified, until they are phased out.
42
Increasing Incomes and Reducing
Erosion in Kenya Through
Micro-Dams
Many rural regions suffer from heavy rains
that cause soil erosion. Our Kenya team
has trained farmers to build micro-dams
by digging small structures that slow water
movement at the areas prone to erosion.
These micro-dams help reduce soil erosion
and they have been so successful that local
farmers are now training other farmers
how to build micro-dams, independent of
PureCircle’s assistance.
ABOUT THIS REPORT
44
About This Report
This document is PureCircle’s first sustainability report, completed in December 2014. It includes data from across our supply chain and
operations, including farms, processing facilities, and distribution channels. Our most comprehensive data is from our directly owned and
operated extraction and purification plants, where we have aggressively tracked and managed sustainability issues. Robust environmental and
social data is also collected from our 18,000 small-scale farmers. Data is less available (and often based on estimates and assumptions) for
our distribution networks and our administrative offices, where our impacts are less significant. We anticipate improving data coverage in the
coming years, based on each facility’s relative significance to the company’s overall impact.
Please note: the sustainability reporting cycle is aligned with the company’s year for consistency. For example, when the report discusses
information from 2012, the data underlying the statement is actually from July 1, 2011 to June 30, 2012.
Reporting Methodology
We used the Global Reporting Initiative (GRI) G4 Guidelines (and specifically the guidance on reporting principles and boundaries) when
determining what to include in this report.
The report focuses primarily on our farming and processing facilities, which have the most significant social and environmental impact. We
are considering adding additional information about our corporate and sales offices in future years.
External Assurance
We have engaged Strategic Sustainability Consulting (SSC), an independent party to support our sustainability reporting efforts. We believe
that this report contains information that is accurate, timely and balanced. While the report and the data within have not been formally
assured, we have completed an internal assessment process in conjunction with SSC to review the contents for clarity and materiality.
Data Methodology
We use internationally recognized standards for calculating our sustainability impacts. For example:
• Our product life cycle impacts were calculated by an independent third party using the PAS2050 life cycle assessment standard.
• Our corporate greenhouse gas (GHG) emissions were calculated using the GHG Protocol Corporate Standard.
• Our employee numbers and labor-related indicators, as well as selected environmental practices, have been assessed and reviewed by
independent third-party auditors under the Sedex SMETA 4-Pillar Audit.
Opportunity for Feedback
We welcome your feedback on this report. Please contact Ajay Chandran, PureCircle’s Corporate Sustainability Director, at
[email protected] or at 1.630.824.3641.
INDEX
We have used the Global Reporting Initiative’s G4 Guidelines in the creation of this report.
This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.
Use the chart below to quickly find information contained in the report.
General Standard Disclosures
G4-31 Contact point for questions regarding the report. 44
Strategy and Analysis
G4-33 External assurance. 44
G4-1
Foreword from the CEO. i
G4-2
Key sustainability risks, opportunities and impacts. 1,2
G4-32 Reporting option chosen for the report. 44
Governance
G4-34 Governance structure. 7
Organizational Profile
G4-36 Responsibility for economic, environmental and social topics. 7
G4-3
Name of the organization. 6
G4-38 Composition of highest governance body. 7
G4-4
Primary brands, products and services. 6, 36
G4-39 Function of highest governance body. 7
G4-5
Location of the organization’s headquarters. 7
G4-40 Nomination and selection processes for highest governance body. 7
G4-6
Number of countries where the organization operates. 6
G4-7
Nature of ownership. 7
G4-41 Processes for the highest governance body to ensure avoidance of
conflict of interests. 7
G4-8
Markets served. 6
G4-9
Scale of the organization. 6
G4-42 Highest governance body’s role in development of organization’s
strategies related to economic, environmental and social impacts. 7
G4-10
Total workforce. 26
G4-48 Highest position that formally reviews and approval of
organization’s sustainability report. i
G4-11
Bargaining agreements. 25
G4-50 Nature and total number of critical concerns. 7
G4-12
Organization’s supply chain. i
G4-51 Remuneration policies. 7
G4-15
Support for external initiatives. 17, 30
G4-52 Process for determining remuneration. 7
G4-16
Memberships in associations/interest groups. 9
Ethics and Integrity
Identified Material Aspects and Boundaries
G4-56 Code of Conduct. 7, 23
G4-17
Entities included in the report. 3
G4-18
Definition of report content and boundaries. 4
G4-57 Internal and external mechanisms for seeking advice on ethical or
lawful behavior. 24
G4-19
Material aspects. 4
G4-20
Material aspects and report boundaries within the organization. 4
G4-21
Material aspects and report boundaries outside the organization. 4
Stakeholder Engagement
G4-24
Stakeholders engaged by the organization. 2
G4-25
Identification and selection of stakeholder groups. 2
G4-26
Engagement of stakeholder groups. 2
G4-27
Key topics raised through stakeholder engagement. 2
G4-58 Internal and external mechanisms for reporting unethical or
unlawful behavior. 24
Specific Standard
Disclosures Economic
Economic
G4-EC1 Direct economic value generated and distributed. 6
G4-EC9 Proportion of spending on local suppliers. 42
Report Profile
G4-28
Reporting period. 44
G4-29
Date of most recent previous report. 44
G4-30
Reporting cycle. 44
Environmental
Materials
DMA 11
G4-EN1 Materials used.
Index
46
Energy
G4-EN3
Energy consumption within the organization. 13
G4-EN5
Energy intensity. 1, 13
G4-EN6
Reduction of energy consumption. 11, 13
G4-EN7
Reductions in energy requirements of products and services. 36
Water
G4-EN8
G4-LA2
Benefits provided to full-time employees that are not provided to
temporary or part-time employees. 23
G4-LA3
Return to work and retention rates after parental leave. 26
Occupational Health & Safety
G4-LA6
Type of injury and injury rates, occupational diseases, lost days, and total
number of work-related fatalities. 28
G4-LA7
Workers with high incidence or high risk of diseases related to their
occupation. 28
G4-LA8
Health and safety topics covered in formal agreements with trade unions. 25
Total water withdrawal 16
Emissions
G4-EN15
Direct GHG emissions (Scope 1). 15
G4-EN16
Energy indirect GHG emissions (Scope 2). 15
G4-EN17
Other indirect GHG emissions (Scope 3). 15
G4-EN18
GHG emission intensity. 16, 36
G4-EN19
Reduction of GHG emissions. 15, 36
Training & Education
G4-LA10
Supplier Assessment for Labor Practices
G4-LA15
Effluents and Waste
G4-EN22
Total water discharge. 18
G4-EN23
Total weight of waste. 18
G4-LA16
Extent of impact mitigation of environmental impacts of products
and services. 36
Significant fines and non-monetary sanctions. 7
Investment
DMA
Transport
G4-EN30
Significant environmental impacts of transporting products for the
organization’s operations. 21
Significant actual and potential negative environmental impacts in
the supply chain and actions taken. 42
23
Non-Discrimination
G4-HR3
Supplier Environmental Assessment
G4-EN33
Total number of grievances about labor practices filed through
formal grievance mechanisms during the reporting period. 24
Human Rights
Compliance
G4-EN29
Significant actual and potential negative impacts for labor
practices in the supply chain and actions taken. 28, 39
Labor Practices Mechanisms
Products and Services
G4-EN27
Programs for skills management and lifelong learning that support
the continued employability of employees. 23
Total number of incidents of discrimination during the reporting
period. 7, 24
Freedom of Association and Collective Bargaining
G4-HR7
Operations and suppliers in which employee rights to exercise
freedom of association or collective bargaining may be violated or
at significant risk.
Environmental Grievance Mechanisms
G4-EN34
Total number of grievances about environmental impacts filed through
formal grievance mechanisms during the reporting period. 7
Social: Labor Practices
and Decent Work
Indigenous Rights
G4-HR8
Supplier Human Rights Assessment
G4-HR11
Employment
DMA
G4-LA1
23
Total number and rate of new employee hires during the reporting
period. 26
Total number of identified incidents of violations involving the rights of
indigenous peoples and actions taken. 7
Significant actual and potential negative human rights impacts in
the supply chain and actions taken. 35
Human Rights Grievance Mechanisms
G4-HR12
Total number of grievances about human rights impacts filed
through formal grievance mechanisms. 7
Index
47
Society
Marketing Communications
G4-PR7
Local Communities
DMA
G4-SO2
30
Operations with significant actual and potential negative impacts
on local communities. 30
Customer Privacy
G4-PR8
Anti-corruption
G4-SO4
Communication and training on anti-corruption policies and
procedures. 7
G4-SO5
Confirmed incidents of corruption and actions taken. 7
Public Policy
G4-SO6
Total value of political contributions by country and recipient/
beneficiary. 7
Anti-Competitive Behavior
G4-SO7
Total number of legal actions for anti-competitive behavior, antitrust, and monopoly practices and their outcomes. 7
G4-SO8
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations. 7
Compliance
Supplier Assessment for Impacts on Society
G4-SO10
Significant actual and potential negative impacts on society in the
supply chain and actions taken. 31
Grievance Mechanisms for Impacts on Society
G4-SO11
Number of grievances about impacts on society filed, addressed
and resolved through formal grievance mechanisms. 7
Product Responsibility
Customer Health and Safety
DMA
33
G4-PR1
Percentage of significant product and service categories for which
health and safety impacts are assessed for improvement. 35
G4-PR2
Total number of incidents of non-compliance with regulations
and voluntary codes concerning the health and safety impacts on
products and services during their life cycle. 7
Product and Service Labeling
G4-PR3
Type of product and service information required by the
organization’s procedures for product service information labeling,
and percentage of significant product and service categories
subject to such information requirements. 37
G4-PR4
Total number of incidents of non-compliance with regulations and
voluntary codes concerning product and service information and
labeling. 7
Total number of incidents of non-compliance with regulations and
voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship.B151. 7
Total number of substantiated complaints received concerning
breaches of customer privacy and losses of customer data. 7, 37
Compliance
G4-PR9
FP5
Total monetary value of significant fines for non-compliance with
laws and regulations concerning the provision and use of products
and services. 7
Percentage of production volume manufactured in sites certified by
an independent third party. 33