Communication on Progress

  • 2020/11/25
Time period
  • November 2019  –  November 2020
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • 25/11/2020

    To our stakeholders:

    I am pleased to confirm that Juhayna reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

    In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

    Sincerely yours,
    Seif Thabet

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • As a member of the UNGC, we have conducted self-assessments focused specifically on these topics. The UNGC has also conducted its own review of Juhayna as part of its review of our membership request. We also adhere to Egypt’s comprehensive employment contracting laws, with our internal policies rigorously monitored and audited accordingly. To ensure we uphold employees’ rights, we have put the following policies in place:
    1. Code of Conduct
    2. Grievance Procedures
    3. Equal Opportunity and Anti-Harassment Policy
    The Code of Conduct and Grievance Procedures are compiled and reviewed regularly by our OD Section Head and approved by the HR Director, followed by the Deputy CEO, who is delegated by the Board on that matter. The Equal Opportunity and Anti-Harassment Policy is compiled by Juhayna’s HR Director, reviewed by the Quality Director and the Director of Internal Audit, and approved by the Deputy CEO who is delegated by the Board on the matter.
    Juhayna’s management holds regular employee-only meetings to discuss concerns regarding working conditions or work-related issues, and hear any concerns or complaints employees may wish to raise. Meetings are held on the first Monday of every month with the company representative. We also work to ensure qualified persons with disabilities or health conditions have access to employment opportunities with the company, providing wheelchair access, flexible working hours, and longer breaks. To safeguard against potential discrimination, hiring managers receive training regarding the company’s nondiscrimination policies. Juhayna also has policies in place prohibiting requiring job applicants to divulge information regarding, marital status, pregnancy, intent to have children, number of dependents, or similar information that may lead to discriminatory hiring decisions. Employment contracts also outline Juhayna’s labor policies that prohibit any and all forms of forced or bonded labor. Any employment advertisements by Juhayna cannot and do not reference discriminatory criteria, such as race, gender or age (unless listed as part of a legal equal opportunities promotion).
    In the case of incidents of workplace discrimination, Juhayna has an established procedure, accessible and known to all workers, enabling them to safely report any such incidents as stipulated under the Juhayna Corporate Management System- Grievance Procedure. Juhayna is continuously committed to applying any labor law amendments. We do not endorse any state-imposed discriminatory limitations on the right to vote, and do not pass along information concerning religious, racial, or political affiliations or other employee information which could be used by the government as a reason to restrict the right to vote.
    All our measures are stipulated in our dedicated Internal Policies, Procedures and Work Instructions under unified Juhayna Policies & Procedures. They are communicated to candidates during the recruitment process, and specific terms are included in the job descriptions, job offer letters, or employment contracts. Our teams constantly work to improve and/or update these strategies through the HR, Internal Audit, and Internal Communication departments. Our Internal Audit team checks and reports on all current systems, documentation, and evidence examined, including:
    •Policies and written procedures, in conjunction with relevant managers, to understand and record what documentation is in place.
    • Implementation in practice (such as thorough training) and the processes used to manage human rights at the sites.

    Child Labor
    Our company only employs individuals above the age of 18. Children under 18 are exceptionally included in the Mubarak Cool Project, a vocational and management training program under the auspices of the Egyptian government. The program supports marginalized children, providing them with work experience in maintenance and finance. Juhayna was the first Egyptian company to be introduced in this system in the early 2000s, and we have been proudly committed ever since. Each training cycle takes up to three years, accepting 30 young workers with a salary payment that increases yearly. The project is run in compliance with internal regulations and national laws to ensure safe and healthy conditions. We respect the minors’ rights to attend school, and participate in vocational orientation or training programs where applicable, in addition to providing the necessary guidance and training. This apprenticeship program does not constitute any significant portion of the workforce, but it is rather our societal contribution to train and support the growing segments of young children who seek work or technical experience in our sector. The program is performed in conjunction with a school program, and does not interfere with compulsory education. All health and safety measures are applied at all our sites and working conditions.
    Given the industry in which Juhayna operates, our largest and most significant suppliers are the providers of raw sourcing for our dairy, juice, and concentrates productions. With Egypt’s complex agricultural heritage and culture, national laws do not prohibit young workers on the field. Educational systems in rural areas were developed over the centuries to accommodate multiple optional schooling hours to accommodate the legacy of agriculture in Egypt. However, we at Juhayna do not allow the hiring of young children under 18 in our own farms. We also implement monitoring and auditing measures for the farms under our care.
    Code of Conduct
    Our Code of Conduct and its related procedures and measures are applicable to all employees, including senior executives and officers. Juhayna’s objective in establishing this Code of Conduct is to promote ethics, honesty and professionalism throughout the company. Employees are expected to behave in a professional and responsible manner, and have an awareness of their responsibilities as representatives of the company. The Code of Conduct provides guidelines on appropriate business operating behaviors and standards with which employees must comply. Employees are expected to observe and comply with Juhayna’s workplace policies, rules, regulations, practices, procedures and guidelines, as amended or issued from time to time, as well as any implied confidentiality of information, which includes, but is not limited to, trade secrets, business, marketing and service plans, consumer insights, manufacturing ideas, product recipes, designs, databases, records, salary information and any non-published financial or other data to which employees have access. This information is to be shared only as appropriate and only as required by the company’s business needs. Juhayna respects third parties’ similar interest in protecting their confidential information. In case third parties, such as joint venture partners, suppliers or customers, share with Juhayna confidential information, such information shall be treated with the same care and confidentiality. In that same spirit, employees shall protect confidential information that they have obtained in the course of their prior employment.
    The document also stipulates issues including, but not limited to:
    • Non-Discrimination and Anti-Harassment
    • Grievances.
    • Confidentiality of Information
    • Insider Trading
    • Conflict of Interest
    • Employment of Relatives
    • Outside Activities or Employment
    • Violence in the Workplace
    • Political Activities
    • Company Property
    • Use of Social Media
    Equal Opportunity and Anti-Harassment Policy
    Juhayna rejects all forms of harassment and discrimination on the basis of disability, age, gender, ethnic origin, or religion, among others. The company established the Equal Opportunity and Anti-Harassment Policy in order to facilitate the enforcement of such measures among the various functions bodies within Juhayna Group. This policy applies to all employees within Juhayna Group.
    The policy focuses on three main pillars, namely:
    • Equality in working life.
    • Harassment.
    • Sexual Harassment, Vilification, Bullying, Victimization.
    Under this policy, every member of Juhayna has the right to learn and work in a safe and inclusive environment that is free from discrimination, harassment, bullying, vilification and victimization. Our Gender Equal Opportunity Committee (GEOC) regularly reviews the policy, which is then ratified by the CEO. Our Human Resources Department is responsible for investigating and addressing any issues that fall under this policy. The department may also involve the Internal Audit Department in cases of serious violations where special investigations are needed.
    Grievance Procedures and Whistleblowing

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • No answer provided.
  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • No answer provided.
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • Juhayna’s Grievance Policy represents the grievance resolution techniques that are introduced to foster a fair and ethical work environment and to contribute to building high workforce morale. The employee grievance policy is a formal communication channel extended to all employees to professionally resolve interpersonal conflicts with their colleagues and superiors. It is communicated to the employees during the process of hiring. A problem facing an individual employee should not be kept unresolved until it reaches a distressful point where the employee will have no choice but to raise a grievance. Every endeavor should be made to resolve it informally. In circumstances where an informal resolution of the employee’s problem has become impossible, there is a formal procedure that the employee should follow.
    Any employee could report a grievance against his/her direct boss or a coworker regarding any issue, provided sufficient supporting evidence is presented, so as to maintain a positive work relationship. Employees who choose to report grievances can do so without the risk of retaliation or harm. Juhayna’s management encourages employees to report any ethical or professional violations, and decisive measures are taken towards violators while protecting the reporting parties, taking into account that the reporting process is based on objective documents or information. We are currently putting in place Juhayna Whistle blowing Policy and Procedure to ensure that the employees can provide both grievance and concerns on unethical behavior anonymously.
    Grievance Resolution Procedures
    •The employee discusses the grievance with his/her direct supervisor or manager.
    • In case the grievance involves the direct supervisor/ manager, then the employee can report the matter to the next higher managerial level.
    •At stage one, every attempt should be made to resolve any conflict or problem in an amicable manner.
    • If the grievance is unresolved informally at stage one, the employee must put the grievance in writing to avoid any possibility of misunderstanding or misinterpretation.
    • If the matter is not mutually resolved at stage two, the employee may take the grievance in writing to the HRBP.
    •The issue under complaint is investigated in order to establish facts.
    •The conclusion of the investigation will be discussed with the employee and all concerned parties within ten working days of submitting the written grievance, unless there is a good reason for delay.
    •HRBP may refer the matter to the Legal Affairs Department if needed. The decision of the HR Director will be final.
    Freedom of Association
    We recognize and uphold our employees’ right to freedom of association and collective bargaining, including the right to freely form and/or join independent trade unions, and this commitment is clearly communicated to all employees, in accordance with national labor laws. All our employees, across all operations, are represented through their elected committee and trade unions. Our Employee Representation Body plays a vital role in establishing an open communication channel with top management. Our trade union covers 100% of our employees, and their representatives are regularly informed of any strategic direction for the company. We also work closely with the trade unionists to receive any concerns and recommendations regarding any business decisions, ensuring those concerns are well considered. Collective agreements also take place at the industry level through the Federation of Egyptian Industries (Food & Beverage Sector), in which Juhayna is a member through its CEO. Our due diligence has been in practice for years through our close collaboration with the Egyptian Milk Producers Association (EMPA), an official platform promoting the right to freedom of association and collective bargaining at the industry level and where all concerns by the industry’s stakeholders are raised and discussed. For seven consecutive years barring 2020, Juhayna has led the industry through its Annual Conference to collaborate with Famers and discuss arising risks in the sector.
    Training on Human Rights
    Our sales representatives and drivers are considered part of our security personnel, as they accompany our goods during distribution across the country. They are in charge of the safety of the products, the vehicles under their care and the management of any cash at their disposal related to their duties. They receive continuous training sessions on a yearly basis, in addition to on-the-job training concerning product control, such as:
    • Product returns handling (by the Quality Control Department – biannual).
    • Best practices for product handling, from receiving the products from our warehouses until their storage in customers’ warehouses (by the Quality Control Department).
    • Customer warehouse handling, in the service section in our professional selling skills course (by our Internal Sales trainers – annual, in addition to continuous on the job coaching).
    • Maintaining warehouse stock arrangements and product rotation.
    • Sorting and replacing the product returns.
    They are also in charge of managing the company’s relationship with retailers, and are therefore accountable to conduct themselves according to Juhayna’s rules stipulated in our Code of Conduct. Our Access Control Procedure is Juhayna’s guiding document for Security Personnel to ensure implementation of global security standards within company buildings and offices, through providing the guidelines and procedures that should be implemented. These guidelines are to be adhered to by all Juhayna employees, contractors and visitors for the duration of their presence within the facility. The document explicitly stipulates the conduct of the security guards towards all type of stakeholders visiting the facilities. This document is particularly important, as Juhayna outsources security guards. The Security Manager is responsible for security guards’ training and compliance with Juhayna’s codes and regulations. The Access Control Procedure is compiled by our Security Manager, reviewed by the HR Director and Director of Internal Audit, and approved by the Deputy CEO, who is delegated by the Board on this matter.
    We do not conduct particular or regular training on Human Rights Principles for employees, but communicate all policies related to the Code of Conduct, Anti-harassment, and Grievance Procedures, which are all part of our hiring process. Supervisors and managers are directly responsible for ensuring the implementation of and compliance with all matters stipulated in these documents by their teams. Any breach of these commitments leads to an assessment of the employee’s conduct, escalating to the HR Department, and/or Internal Audit if necessary. On the other hand, particular training is conducted in certain functions related to other stakeholders with whom our employees conduct our business, such as farmers and retailers.

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • No answer provided.
  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • No answer provided.
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • As sustainable practices continue to gain tract in support of global environmental wellbeing, Juhayna parallelly grows more committed to adopting advanced practices that reduce carbon footprint and increase the adoption of circular economy practices. This is powered by the introduction of state-of-the-art technologies at our plants; strict adherence to local and global guidelines in environmental management; and forging global partnerships that foster the implementation of our green goals.
    Energy efficiency and conservation

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • Juhayna Factories:
    1- Al Masreya
    • Shifted from manual to automated packaging by replacing the Bekhero liter filling lines with two new cardboard lines (January 2019)
    • Increased pasteurization capacity (lacta) from 60 to 83 tons/hour by adding a new 20 ton/hour pasteurizer, and increased lacta 1 capacity from 10 tons/hour to 13 (July 2019)
    • Replaced the 5000 pack/hour capacity 1.5-liter line with an 8000 pack/hour line (July 2019)
    • Expanded cooling capacity from 884 tons to 1800 tons (January 2020)
    • Increased processing capacity from 68 tons/hour to 99 tons/hour by adding a new 32 tons/hour sterilizer (February 2020)
    • Upgraded the water treatment station to enhance performance (April 2020)
    • Raised the capacity of the two existing 200 ml fillers – now up to 48k packs/hour from 40k/hour (May 2020)
    • Enhanced automation by upgrading cleaning lines, tanks and fillers using the clean-in-place (CiP) method (August 2020)
    • Increased air capacity from 55 m3/m to 100 m3/m (August 2020)
    • Launched an uninterruptable power supply (UPS) project to protect production from electricity cuts (2020)
    2- Al Dawleya
    Operational since 2009, Al Dawleya is now one of the largest industrial complexes in Egypt and the MENA region. Its fully-automated operations are primarily used for the packaging of fresh juices and drinks, with its advanced technologies producing minimal waste. Several environmentally-friendly upgrades were finished at Al Dawleya in 2019 and 2020; they are mentioned below under “Energy efficiency and conservation” and “Wastewater management”.
    3- Al Marwa
    Certifications received include:
    • FSSC 22000
    • ISO14001
    • ISO 45001
    • KOSHER
    • HALAL
    • Sure Global Fair (SGF) – Under renewal

    4- EgyFood

    • Received the ISO 14001 (Environmental Management System) certificate
    • Renewed its Food Safety Quality Certificate (FSSC)
    • Launched the new Greek yogurt line (March 2020)

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Natural Gas (m3) Electricity (kWh)
    2018 2019 2020 YTD 2018 2019 2020 YTD
    Al Masreya 2,646,459 2,788,232 1,888,999 16,212,739 15,754,263 10,647,988
    Al Dawleya 860,676 877,782 680,549 680,549 14,783,910 15,047,527 8,417,968
    Al Marwa 3,330,700 2,988,877 2,988,877 5,802,530 5,679,041 2,610,449
    EgyFood 1,290,278 1,368,476 1,063,819 18,628,607 19,947,328.00 12,436,009.54

  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • Internal Audit

    The Internal Audit Department holds multiple central functions, providing independent, objective assurance and consulting using a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes as designed and represented by management. The Internal Audit Department has unrestricted access to all functions, records, property, and personnel. As an independent consulting function, the Internal
    Audit Department reports directly to the Chairman on all critical concerns of a sensitive nature.

    Within various assignments carried out as per the annual audit plan and other adhoc plans, the Internal Audit Department ensures that:

    1. Risks are appropriately identified and managed.
    2. Interaction with various governance groups occurs as needed.
    3. Significant financial, managerial, and operating information is accurate, reliable and timely.
    4. Employees’ actions comply with policies, standards, procedures and applicable laws and regulations.
    5. Resources are acquired economically, used efficiently, and adequately protected.
    6. Programs, plans and objectives are achieved.
    7. Quality and continuous improvement are fostered in the organization’s control process.
    8. Significant legislative or regulatory issues impacting the organization are recognized and addressed appropriately.

    The objectives of internal control (considered by Internal Audit) are:
    1. Compliance with policies, procedures, plans, rules, regulations and laws.
    2. Reliability and integrity of information.
    3. Economical and efficient use of resources.

    The Internal Audit assignments include:
    1. Operational and Financial Audits
    2. Consultancy
    3. Investigation on fraud, corruption, violation of laws and regulations.

    The company has adopted a comprehensive approach to addressing potential risks. Juhayna’s digital integrated system, SAP allows for seamless information sharing, ensuring accuracy, accessibility, and accountability for all data. This system facilitates the department’s auditing activities, which are later reported to the chairman and CEO. The board then decides whether issues require further action and reports to shareholders at the general assembly or the call of an extraordinary assembly, if necessary.

    In order to further ensure its operational integrity, the company commissions external audit services on a quarterly basis by global audit corporations KPMG – Hazem Hassan and Grant Thornton – Hossam Helal.

    The company’s disclosure methods include the following tools:

    - Juhayna’s Annual Report
    - Board of Directors’ Report
    - Financial disclosures
    - Website
    - Sustainability Report

    Risk Management

    The Board of Directors prioritizes a risk control culture that is efficient and sustainable. It holds the overall responsibility for the establishment and oversight of the Juhayna’s risk management framework and is responsible for developing and monitoring the company’s risk management policies.

    Risk management policies and systems are reviewed regularly to reflect changes in market conditions and our activities. Through training and management standards and procedures, we aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations, while the board oversees how management monitors compliance with the company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the company.

    While the company does not have a risk committee, executive members of the board along with executive directors from all departments assume those responsibilities. As presented across this report, each function in the company is in charge of identifying, reporting, and implementing the risk prevention and mitigation actions relevant to their responsibilities that would reduce any risks facing the company such as market risks, credit risks, information systems risks, and all types of risks that affect the activity and sustainability of the company.

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • No answer provided.
  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • No answer provided.