15/07/2022
To our stakeholders:

I am pleased to confirm that Westfalia Fruit International 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,

Alk Brand
Chief Executive Officer

Through our UK business we are Full members of the ETI & keep the ETI base code at the centre of our commitments to Human Rights across our supply chains.
Within our Integrated Annual Report, we represent our workforce through the Human Capital pillar & report on gender equality as a specific topic.

OUR STRATEGY PROPOSITION
Westfalia wants to become the industry employer of choice globally, by creating a future-fit work environment that is engaging, inclusive and safe, with the best talent with the right skills, highly motivated, and high performing.

HUMAN CAPITAL PRINCIPLES
Westfalia believes that diversity is essential to its business and prohibits discrimination on any basis. Westfalia does not tolerate any form of racial, sexual or workplace harassment. Westfalia protects and upholds fundamental human rights throughout its operations. Westfalia upholds the International Labour Organisation Declaration on Fundamental Principles and Rights at Work.
Westfalia recognises and upholds its people’s rights to a safe workplace, freedom of association, collective representation, just compensation, job security and development opportunities.
Westfalia’s global Human Capital principles framework and the Group Code of Ethics reiterate Westfalia’s stance in terms of fair employment practices, which protect the human rights of all employees.

Employment profile
The number of employees (permanent and contractors/seasonal/FTCs) in Westfalia at year-end increased from 7 375 in 2020 to 7 528 at the reporting date, an increase of 2.1%. Fixed-term employees comprise 53.1% (2020: 54.0%) of Westfalia’s workforce.

Employment profile by gender (permanent employees)
Female employees constitute 38.3% of Westfalia’s permanent workforce.
Employment profile by gender in supervisory/middle management roles
During the reporting period, 37.3% of employees in supervisory/middle management roles were female.

The employee assistance programme, AskNelson powered by Kaelo, continued to provide services during 2021.
AskNelson offers confidential professional assessment and referral assistance for employees and their families through the following services:
Counselling – Unlimited telephonic access as well as face-to-face counselling, health information and education from registered health professionals
Legal advice – Advice, information and discounted legal services to deal with issues such as divorce, maintenance, lawsuits, getting arrested, garnishee orders, blacklistings, etc. (this excludes labour-related matters)
Financial advice – Advice and support for common financial problems such as debt, budgeting, loan finance, tax, wills and estate planning
Trauma intervention support – Telephonic and on-site containment, debriefing and counselling in the event of a work-related trauma incident
Road accident cover support – Assistance with road claims
Managerial support – Exclusive coaching, orientation sessions and support for managers

All Human Right metrics are reviewed annually & published (internally) in our Integrated Annual Report.

Under the ETI membership we operate all our sites using the base code as a standard principle.

COLLECTIVE BARGAINING
Westfalia upholds the right of employees to freedom of association and collective bargaining. In 2021, various operations within Westfalia actively engaged with unions on topics of wages, provident funding, working arrangements and business viability.
In 2021, 23.1% (2020: 24.7%) of employees were unionised in South Africa, while in the rest of the world the workforce is represented by unions in Chile only.
Agricom operations in Chile have a 2.6% (2020: 1.6%) representation.

Maintaining sound and peaceful employee relations is key to business sustainability. While Westfalia recognises that engaging with and responding to employees may sometimes present challenges, Westfalia believes that the employee and trade union stability achieved over the past three years can be attributed to the relationships established with employees, temporary workers and their union representatives.

HEALTH AND SAFETY REPORT
Executive summary
2021 has been an exciting year where significant progress has been made in implementing Westfalia’s five-year Health and Safety strategy. The three 2021 objectives – establishing the Westfalia Health and Safety Management System (“HSMS”), objectively measuring health and safety performance, and acting on the results of the Westfalia Safety Perception Survey – have been met.

Ensuring the health, safety and welfare of all Westfalia’s colleagues during the COVID-19 pandemic has been at the forefront of its actions. A preventative and proactive approach was taken by increasing the extent and frequency of disinfectant cleaning, having colleagues work remotely, where possible, providing counselling services to support mental health, and actively encouraging and supporting vaccination programmes.

Health and Safety Management System
Westfalia’s HSMS has been written to meet the requirements of the internationally recognised Occupational Health and Safety Management System ISO45001:2018. Implementing Westfalia’s management system will enable each company to provide safe and healthy working conditions that prevent work-related injury and ill health, and proactively improve each company’s occupational health and safety performance. HSMS supports the development and implementation of Westfalia’s Health and Safety Policy and its objectives, locally, taking into account applicable legal requirements, the context in which the company operates as well as the needs and expectations of its workers and stakeholders.
Westfalia’s HSMS provides a consistent, unified approach to establishing a sustainable health and safety model where everyone is responsible for health and safety not just for themselves but also for their colleagues, rather than being perceived as the responsibility of one individual.
This is critical for the development of the respective businesses’ health and safety cultures.
All audits were completed remotely via Teams according to the 2021 auditing schedule. The process of auditing has raised awareness and identified areas for improvement to meet the requirements of ISO45001:2018.
The visibility Westfalia now enjoys allows tailored support to be provided for every company to successfully achieve ISO45001:2018 accreditation. The scores help to determine the readiness for external auditing and determine the support required to achieve successful third-party accreditation.

Health and safety operational performance:
2021 has seen a positive downward trend in Westfalia’s Accident Frequency Rate (“AFR”) due to the efforts of each company in Westfalia implementing the respective health and safety initiatives in line with establishing the Westfalia HSMS, concluding the year with a December AFR of 3.40 and average year-to-date AFR of 7.39.
The reduction of the Westfalia AFR has been achieved through the effective communication and processes put in place, achieving an increased awareness and understanding of the moral, financial and legal obligations of health and safety for each of the companies.
Health and safety roles and responsibilities have been formally established. Extensive training, both internal and external, where weaknesses and a lack of knowledge were identified, has been instigated, and/or specialist support employed to drive improvements at pace.
Assessing the operational environment was made a priority in order to identify hazards with the subsequent review of risk assessments.
Positive interventions were supported by acting on feedback received from the SPS focus groups.
The analysis of accident trends and outcomes of root cause analysis has resulted in a significant number of monthly AFR KPI targets being met via immediately improving the working environment.
Throughout the year, there has been a sustained focus on the leading indicators. The number of near misses reported has increased by 87% and the number of health and safety inspections has seen a 55% increase compared to 2020.
Westfalia will continue to take a proactive approach towards health and safety by introducing a leading, near miss KPI for 2022.
All developments have been approached as part of the Westfalia United Gold Standards strategy of integration, where shared learning has played a critical part in the successful implementation of Westfalia’s health and safety strategy.
Interventions made include the development of seven shared learning documents, covering topics such as:
§ working at height;
§ the benefits of conducting safety perception survey focus groups;
§ how to encourage the reporting of near misses;
§ the dangers associated with working in close proximity of electrical installations;
§ benefits of encouraging active worker breaks; and
§ conducting safe worker of the month programmes.
13 Westfalia policies and guidance notes have been written to include Westfalia’s published Health and Safety Policy, Contractor Selection and Management Guidance notes and Westfalia’s Accident Investigation procedure.
Under Element 10: Operational Risk Control (Procurement, Contractor and Outsourcing) of the HSMS, 2022 will see the publication of guidance notes for Legionella, Racking, Fixed Electrical Wiring, Fire Risk Assessment, Noise Risk Assessment, Traffic Management, Machinery, Lone Working and Overseas Travel.
All guidance notes will be supported by training to ensure a full understanding throughout Westfalia.

All labour metrics are recorded & reported in the annual report & discussed at board meetings throughout the year.
Data as reported under Human Rights.
Many of our sites undertake external audits to Rain Forest Alliance, GlobalGap Grasp, SMETA & SIZA on our worker welfare commitments.

NATURAL CAPITAL OBJECTIVES
Westfalia’s Natural Capital objectives, outlined in 2020, are still relevant and, due to their mostly long-term nature, remained the following:
§ Evaluate climate change impact and response
§ Minimise environmental impacts
§ Reduce the use of hazardous materials
§ Improve the efficiency of fuel and electricity usage
§ Improve the efficiency of water usage on Westfalia’s farms
§ Maintain and enhance biodiversity on Westfalia’s farms
§ Reduce waste at all levels
Additionally, Westfalia has a specific focus on:
§ Reducing or removing plastic from its packaging

STRATEGIC OBJECTIVES
Westfalia’s strategy in respect of Natural Capital was reviewed towards the end of the 2020 reporting period and has been changed extensively.
In line with the strategic objectives and governance, Westfalia became signatories to The Science Based Target Initiative (SBTI) and members of the UN Global Compact.
Long-term targets
The Westfalia Fruit Group’s long-term targets are:
By 2025 – Zero waste sent to landfill.
By 2030 – Carbon neutral across all businesses.
Remove black plastic from packaging and ONLY use widely recyclable materials.
Reduce water use per kg of fruit produced by 50%.
By 2035 – Reduce pesticide use in orchards by 50%.
By 2049 – Become lifetime carbon neutral.

ENVIRONMENTAL STRATEGY
The Westfalia Fruit International Environmental Strategy was developed in 2020 and adopted by Westfalia and the RTE sub- Committee. This is still relevant in 2021 and the key focus areas are noted below.
Westfalia will evaluate its impact through the following actions:
§ Measure its carbon footprint
– Develop action plans for each business to improve over time.
In 2021, the following operations undertook Scope 1, 2 and limited Scope 3 carbon footprint assessments:
§ Greencell, UK
– Total emissions established as 819 t/Co2e
§ Westfalia Germany
– Total emissions established as 723 t/Co2e
§ Westfalia Peru
– Total emissions established as 273 t/Co2e
§ Westfalia Colombia
– Total emissions established as 239 t/Co2e
Action plans are in place to assess all businesses, using 2020 as the base year, and targeted action plans will be implemented to reduce emissions each year, to achieve Westfalia’s goals.
In 2022, a full review of Scope 3 emissions will take place, so Westfalia will have a base measurement to further reduce and calculate these emissions.

WATER FOOTPRINT

Water use intensity m³/ha 4 593(2021) 3 396(2020) 3 946 (2019)
Water use efficiency (farms) l/kg fruit 347(2021) 377(2020) 438(2019)
Westfalia’s water use efficiency continues to improve, due to the increased focus on targeted water applications and the rolloutof the low-flow drip technology. Westfalia will continue to roll this out to more locations between 2021 and 2025.
The water use intensity increase is due to lower rainfall at key crop stages and an increase in irrigation, which in turn created a greater efficiency with the increase in kg of fruit produced.
A Water Use Framework has been developed and will be rolled out across Westfalia, which has the following guiding principles based on a three-level approach:
Global – A Water Policy was introduced across all operations in 2021 and Westfalia will champion water stewardship as part of its global commitment to achieving SDG goals 6, 11, 12, 14 and 15.
National – Westfalia will ensure that all operations comply with national legislation and go above and beyond compliance to support national water challenges.
Local – Westfalia will ensure that water used directly on farms or in production is sustainably sourced and will maintain its production areas to be in line with existing water availability, existing licensed volume or acquire new licences to support expansion.
Westfalia will protect the water catchment areas from pollution and support the downstream communities with continued access to safe water resources.

CARBON FOOTPRINT undertaken across the whole business, under GHG Protocols for Scope 1, 2 & partial 3.
Business unit / Tonnes of CO2e
WESTFALIA FRUIT GROUP 60 469
UK – Greencell 819
France – Comexa 613
Germany 667
Netherlands – BV 79
Netherlands – Euro West 1 087
USA 2 349
Peru 272
Colombia 239
Chile – Agricom 824
Chile – Frutec 6 068
Chile – Frupol 17 085
South Africa – WFP 7 502
South Africa – Ripe & Ready 3 925
South Africa – Farms 15 977
South Africa – Marketing 112
* Based on 2020 calendar year – Scope 1, 2 and 3 (Travel and commuting).
Conducted by One Carbon World in January 2022.

In 2021, we engaged the workforce in antibribery & corruption awareness training (ABC). We have a zero tolerance approach to this policy.

We established "whistleblower" hotlines, through a 3rd party company to ensure anonymity is protected.
The actions sit across HR, ESG & Finance to review and manage effective investigation to all acts.

Any incidents raised are fully investigated & the ultimate action would be dismissal of employee.
In many cases retraining & education will be sufficient to deal with any issues raised.