Transcription
FY2015Corporate Citizenship& Sustainability Report
INTRODUCTION and COMMITMENTIn 1960, Tree Top was founded as an agricultural cooperative by a group of growers in Washington’sapple country. The mission of the Cooperative was to take from our growers’ orchards their fruit notattractive enough to sell to consumers, and turn it into healthful fruit products for the marketplace. Formore than 55 years now, Tree Top has been saving ‘ugly’ fruit by producing a wide array of premium fruitproducts such as apple sauce, purees, juice, and dried ingredients.Over the years, the Cooperative used its fruit expertise to expand into other fruits and fruitproduct offerings. With nine fruit handling and production facilities strategically located nearthe farms, Tree Top now offers the widest array of fruit products available from a single source.The company produces, markets and sells products to consumers through retail stores and thefoodservice industry. Also, the company produces fruit ingredients for 22 of the world’s leadingglobal food manufacturers. Consumers enjoy Tree Top’s fruit products in a wide range of things fromcereals to dairy snacks and more.Our customers, consumers, growers, employees, and our communities are the stakeholders to whom we listen andfrom whom we seek guidance on the items important to them as it relates to social responsibility and sustainability.Since its founding, Tree Top has maintained a focus on environmental stewardship. One of the company’s core values isResponsibility: We are committed to making a positive impact on our community and environment.MISSIONVISIONDeliver sustainable value to ourgrower-owners by exceedingcustomer expectations.Your first-choicefruit company.COMPANY VALUESEMPOWERMENTRESPECTWe promote a culture of continuous improvement andinnovation where employees are encouraged to challenge thestatus quo and accept accountability for results.We build strong relationships by valuing each other’sexperience, opinions, and diversity.INTEGRITYWe do the right thing, communicating openly and honestly,exhibiting behaviors consistent with our words.QUALITYWe are committed to quality – the quality of our products,services, and our way of doing business.RESPONSIBILITYWe are committed to making a positive impact on ourcommunity and environment.UNITYOne mission, one team, one Tree Top.
Tree Top produces,markets and sellspremium fruit productsand ingredients, sold inmore than 20 countriesacross the globe.ABOUT USTree Top operates nine fruit handling facilities. Each facility uses different fruit, requiring different methods of processingto create a wide array of finished products and ingredients. Comparing the facilities’ yields and resource consumptionis complicated by their differences. However, each production facility has the goal of producing more yield while usingfewer resources to do so. To measure and track progress across our entire production process, in 2009, Tree Top adopted aSustainability Index. This report reflects the historical index charts for each facility as well as total manufacturing index chartsfor the company over the last five years.Our goal is to be as transparent as possible and to continue improvements in the reduction of Tree Top’s environmentalimpact. This annual report is just one method of sharing our goals and progress with stakeholders.Tree Top also reports information through CDP, an organization working globally to reduce climate impacts and other harmfulenvironmental impacts through transparent reporting, measurement, and scoring. Global manufacturers and others use theCDP information to evaluate their supply chains’ impact and to establish targets for suppliers.Tree Top voluntarily undertakes Ethical Trading Initiative audits conducted by certified, third party auditors to measure againstthe SMETA Pillars 4 international standards for issues related to labor practices, health and safety, environmental impact andcommunity support. Sharing audit results on the Sedex global reporting system allows our retailand ingredient customers easy access to important information.OUR OPERATIONSTree Top’s headquarters are in rural Selah,Washington, in the heart of Washington’sapple country. The Cooperative owns andoperates a fruit sorting facility and eightfruit processing facilities which collectivelyhandle more than 450,000 tons of all types offruits annually. Data reported herein reflectsthe yields and resources utilized at each ofour production facilities.
DEFININGSUSTAINABILITYSomething is sustainable when it meets the needs ofthe present without compromising the ability of futuregenerations to meet their needs. The core principlesbehind our sustainable practices are to: minimize harm maximize benefit be accountable and responsive to key stakeholders support strong financial resultsIn 2009, Tree Top’s formal sustainability program wasestablished to provide education to employees, helpestablish goals, oversee projects and report results.A Corporate Social Responsibility Committee (CSRC)led by the company’s Corporate CommunicationsDirector reports to the CEO directly, and in turn, theBoard of Directors. The Committee represents a broadspectrum of key people throughout the organizationfrom manufacturing to executives to R&D and supplychain management.The charter of the CSRC is: To promote social,economic, and environmental health througheducation, influence, and action.By listening to stakeholders, including our customers,we determine our primary focus areas each year. OurCSRC helps bring focus to the organization’s efforts,including observation, data collection, processimprovements, monitoring, and progress reporting.Below are the primary areas of interest related toour manufacturing facilities and our company’s keyfocus areas: Increase throughputs and yields –(produce more, more efficiently) Reduce water use and wastewater Reduce energy use (electricity and natural gas) Reduce solid waste generation (packaging) Employee welfare Community support and volunteerism
REPORT ON PRIMARYMany energy saving projectsREDUCE WATER USE TOOREDUCE WATER andWASTEWATERHandling more than 400,000 tons of fruit eachyear requires a lot of water, and we continuallystrive to conserve and treat the water tomaintain environmental integrity.All of Tree Top’s manufacturing facilitiesare expected to continually look for waysto reduce water use. We’ve captured andreported thousands of gallons in savings overthe past five years. Besides reducing waterconsumption, Tree Top is proactive aboutmanaging its wastewater to ensure waterreturns clean to nearby tributaries and rivers.FY2015 WATERIMPROVEMENTPROJECTSSelah Plant 9: While updating thefacility with a new pouch package line, an aircooled pouch chilling system was installed.The high-efficiency chiller and diversionsystem of non-contact cooling water with adirect discharger was selected and installedto minimize wastewater impact.Selah Campus Storm Water Project: Anew diversion swale on our Selah campusnow diverts approximately six acres ofstorm water collection to a low impact,zero energy swale. This keeps pollutantsfrom the Selah Ditch, a natural runoff area.This effort reduced the water temperatureimpact and qualified our Selah Campus for aNo-Exposure Determination letter from WADepartment of Ecology (DOE).Sprayfield Update: Working with the DOE andour local Health Department, practices werechanged at the Selah Sprayfield where ourSelah Campus wastewater is treated. We nowutilize sludge as fertilizer on local hayfields.Not only does the sludge increase nutrientsand crop yields, it eliminates the need to haulsludge to disposal sites unnecessarily.INCREASETHROUGHPUTS and YIELDSMany people have heard the term “carbon footprint” which is ameasure of the impact activities have on the environment, and inparticular climate change. It relates to the amount of greenhousegasses produced in our day-to-day lives through burning fossil fuelsfor electricity, heating, transportation, etc.To help measure and report progress, Tree Top created aSustainability Index, which reflects the total amount of fruitproducts we produce at our facilities compared to the total amountof key resources used in generating those yields. Because eachfacility produces different fruit products and processes vary, somefacilities report yields in total pounds of finished goods whileanother may report total pounds of fruit solids. The SustainabilityIndex is a simple way to calculate the total, overall progress inreducing resource consumption versus yield compared to aninitial baseline. Please refer to the illustration above for a simpleexplanation of the Sustainability Index.CERTIFIED SUSTAINABLE:STRAWBERRY, RASPBERRY,BLUEBERRY, BLACKBERRYAND CHERRY FARMS.Unilever’s Sustainable Agriculture Code is renowned globally asone of the most stringent codes related to sustainable growing.With guidance from Tree Top’s trained, specialty fruit procurementstaff, our growers have obtained the prestigious certificate ofcompliance, with the Unilever Sustainable Agriculture Code.
AREAS OF INTERESTENERGYREDUCTIONSand EXPECTEDRESULTSSINCE CSR FOCUS:COMPLETED 31ENERGY SAVINGSPROJECTS!FY2015ENERGY REDUCTIONPROJECTSMedford Plant Lighting Upgrades:Converted to LED lighting, creating a brighterworkplace using lower energy than theprevious lighting. This project was recognizedby Pacific Power for its energy savings, andthe company received 28,142 in rebates.Selah Plant Line 9: While adding a newpouch packaging line, a section of thefacility was updated. The update includednew LED lighting and new insulation forbetter energy retention.Selah Campus Wastewater Spray Field:Installed oxygen sensing technologycombined with variable speed and base-loadaeration control. This provided for energyreduction and conservation while improvingwastewater treatment. Pacific Power deemedthe project would produce realizable powersavings of nearly 50,000/year.Ongoing wastewaterreduction projectsprovided capacityfor essentialmanufacturing TFACILITIES.REDUCINGNATURALGAS USEREDUCES CO2Ross Plant Air Compressor Replacement:Replaced an older air compressor with amore efficient unit, including variable speedcontrol, which is estimated to save 238,017kWH annually. The project also generated anincentive reward provided by Pacific Powerof 35,703.SOLID WASTE/PACKAGINGREDUCTIONTree Top continually works onlight-weighting or reducingthe amount of materialsused to create packagingwhile maintaining the qualityexpected of a premium brand.Intentionally, all of our cans andplastic containers are recyclable.Our packaging is in compliancewith the U.S. and Canadian FoodPackaging regulations.With the addition of two new applesauce packing lines over the pasttwo years, Tree Top has been ableto dramatically reduce the use ofindividual plastic cups previouslyused for packing single servings.The pouches have recyclablelids and the pouch itself flattensentirely. Flatter packaging takes upless space in landfills.RECYCLINGAll facilities actively recycle corrugate paper, metaland plastic. In addition, the company is enrolledin the Staples Advantage program to recycletoners and ink, and bathrooms are stocked withSustainable Earth products.
Scale with Baseline at 100TOTAL MANUFACTURING INDEX(ALL USEAGE VS. PRODUCTION YIELD) Track each facility’s progress individually Align our measurements with existingmanufacturing goals and targets Establish a base-year index which is setto 100 to measure against year after year Improve data interpretation Set goals based on fluctuatingproductionOur resource consumption ties directly to thevolume of fruit we process each year. As is thenature of our agriculture business, crop qualities,and quantities vary each season and thatvariability directly impacts our processing.11297201120121018799201320142015Fiscal Year (Aug-July)FY2011FY2012FY2013FY2014FY2015GHG(Tons CO2 l 6,369Water 266,872328,043,595412,254,203MEDFORD - OREGON PLANTTree Top purchased the Medford facility in 2008 as a subsidiary and integratedits manufacturing facilities and fruit offerings under the Tree Top identity inAugust 2010. The Medford plant employs up to 200 people. The facility operatesapproximately ten months out of the year to turn fruit into single strength andconcentrate purées as well as formulated fruit sauces for conventional, organic,and baby food. The primary fruits processed in Medford include apples, pears,apricots, peaches and strawberries.Medford Plant Sustainability IndexIndex Scale: Baseline is 100THE SUSTAINABILITYINDEX ALLOWSTREE TOP TO:12010080604020012010010096807980746040200OUR INDEX CALCULATION IS:FY2011FY2012FY2013FY2014FY2015Fiscal Years (Aug-July)PRODUCTIVITY (FRUIT SOLIDS)OXNARD - CALIFORNIA PLANTWATER(33%)NAT GAS(33%)X 100OROxnard Sustainability IndexIndex Scale: Baseline 100ELECTRICITY(33%)The Oxnard, California Plant is our newest state-of-the-art facility, opened in 2013. Itsthoughtful design allows production of formulated fruit preps for ice cream, frozennovelty, and yogurt applications. It is strategically located in the heart of the U.S.domestic strawberry growing region, ensuring the highest quality fruit possible.Additionally, this facility has specialized pasteurization equipment to gently eliminatepathogens while maintaining piece identity and color. Since food safety is ournumber one concern, this facility produces two types of fruit preps, pasteurized andaseptic. The facility employs approximately 50 iscal Year (Aug-July)SUSTAINABILITY INDEX
PROSSER - WASHINGTON PLANTWENATCHEE - WASHINGTON PLANTLocated in the fertile Columbia Valley in eastern Washington, Concordgrape, blackberry, cherry, peach, plum, cranberry, raspberry, apple, andpear juice concentrates are the main items produced at our Prosser Plant.With a storage capacity of 4.9 million gallons, this facility produces variousflavor blends of juice concentrates and processes Individually QuickFrozen (IQF) cherries, which include Bings, Vans, and Lamberts. Retailpackaged goods such as composite frozen 3 1 and 5 1 juice, sauce tubes,and RTD 46 ounce juice in tin cans are also produced at the facility.The Wenatchee Plant is an 80,000 sq. ft. production facility situated alongthe Columbia River. This plant manufactures Individually Quick Frozen (IQF)apples, solid pack, and sugar-capped apples, which are mainly used by thebaking industry. In addition, this plant produces low moistures apples innumerous fruit flavors for use in cereal and snack bar products. It is also hometo our fruit “puffing” operation, which alters the texture of an apple piece byforcing air into the cellular structure, giving it the texture of a potato FY2014Wenatchee Sustainability IndexIndex Scale: Baseline 100Index Scale: Baseline 100Prosser Plant Sustainability 12FY2013FY2014FY2015Fiscal Years (Aug-July)Fiscal Years (Aug-July)ROSS PLANT - SELAH, WASHINGTONWOODBURN - OREGON PLANTThe Ross Plant is one of two dried fruit manufacturing facilities andproduces evaporated and low moisture apples, as well as drum driedfruits. Dried apples are produced in many sizes, from rings to 1/8” x 1/8”apple chips, to a wide range of specialty infused apples. The operationsteam at our Ross facility also oversees the operation of our fresh cutapple processing plant. The Fresh Slice Plant processes fresh apple slices,dices and chunks for retail and the foodservice industry.The Woodburn facility was managed by a wholly-owned subsidiary untilAugust 2010, when it was integrated into the Tree Top structure. TheWoodburn Plant makes ingredients for the food manufacturing industry,including: Fresh berry packs, formulated fruits, fruit preps, single strengthpurées, purée concentrates, and dried fruit flakes. Approximately 60-100employees handle the following fresh fruits: Apples, pears, Northweststrawberries, blueberries, and blackberries.1331401201201008086Woodburn Sustainability AH PLANT - SELAH, WASHINGTONThe Selah Plant is Tree Top’s largest retail packaging facility with nine productionlines and 450,000 square feet of manufacturing and warehouse space. In FY2013,a pouch production line to produce good-to-go fruit (apple sauce pouches)was added to the facility, thereby increasing production and staff. Successfulsales created the demand to add a second pouch production line in FY2015,which increased production through the facility. The Selah Plant not onlypackages PET, glass, polypro, aluminum, pouches and aseptic for our brand, italso manufactures beverages and apple sauce for other national brands. Whilebeverages are its major activity, it produces apple sauce in 3.2 oz. re-sealablepouches and other cups and containers in 4 oz., 2.4 oz., 24 oz., 48 oz., and a 5gallon bag-in-box for our Tree Top and Seneca brands.Index Scale: Baseline 100Selah Plant Sustainability Fiscal Years 2011FY2012FY2013Fiscal Years (Aug-July)Fiscal Years (Aug-July)110Index Scale: Baseline 100Index Scale: Baseline 100Ross Plant Sustainability IndexFY2014FY2015Completedfirst CarbonDisclosureProject (CDP)survey andbegan collectingscope 2 data.
EMPLOYEEWELFAREProviding a safe work environment,and highly competitive wages andbenefits for Tree Top’s approximately1,100 employees has helped createa supportive and neighborly cultureand earned the Co-op a very goodreputation as a quality employerwithin our communities.SAFETYTree Top utilizes a SafetyIndex which is measuredagainst a national standard.The Index includes trackingthe severity of the accident,the days away from work, whether ornot medical treatment is sought, and therestricted duty as a result of an accident.Each manufacturing facility has anestablished Safety Committee to train,audit and review procedures and facilitiesfor improved safety. Intense annual audits,monthly reporting and targets, as well asa proactive Accident Prevention Plan, withregular peer review and auditing, help tomaintain a safe workforce.Total hours worked in FY2015 were2,130,681, and half of those hourswere worked in a food manufacturingenvironment. The most recent nationaldata for Food Manufacturing companieswith 1,000 employees reflects an averageincident rate of 3.4. Tree Top’s foodmanufacturing incident rate is 3.19, orbetter than the average.ETHICS &CODE OFCONDUCTTree Top maintainsa formal Codeof Conduct which is published for allsalaried employees in the company’sEmployee Handbook. The Code ofConduct was prepared using examplesfrom some of the world’s leading foodmanufacturers’ Codes of Conduct. Itincludes many international standardsrelated to business ethics, labor, financialtransactions, environment, communitysupport, etc.An Ethics Hot Line was established in2013 for ease in reporting any potentialviolations or concerns.Voluntary, third party audits have beenundertaken at each manufacturingfacility beginning in 2013. The auditscompare labor practices, environment,health and safety, and our Code ofConduct against the United Nation’sEthical Trading Initiative standards.Results are published for full disclosureon the global reporting site for ethicalsupply chain management – Sedex.
OUR WORKFORCEWAGES, BENEFITS AND OPPORTUNITIES Tree Top is an Equal Opportunity/Affirmative Action Employer (EEO) providing gainfulemployment in a wide range of fields from engineering and technical support to manufacturingto sales and marketing. We participate in an annual audit and complete an Affirmative Action Plan incompliance with the Office of Federal Contract Compliance Programs (OFCCP), Department of Labor.Tree Top employed 1,044 employees, including 28 employees at our subsidiary at the end of FY15. We prefer to hirefull-time positions versus part-time for greater work consistency and quality. Full-time positions provide 95% of ouremployees and their families with access to affordable and competitive benefits. We’re pleased to report, nearly half ofTree Top’s employees have been with the company 10 years or longer!Workforce Highlights: EEO compliant 39% of our employees are minorities 34% of our employees are women Our minimum wage is 37% above the federal minimum level 95% of employees are enrolled in our highly competitive medical, dental, vision, and prescription drug benefitprogram, greatly subsidized by the Company 50% of employees have their dependents enrolled in Tree Top’s medical/dental/prescription drug plan An employee wellness program, in its 5th year, provides for free health screenings, counseling, and health riskmanagement support. Also, financial incentives are provided for active participants and wellness activities andchallengesWages and Benefits: Benefit and compensation reviews are completed bi-annually by Towers Watson, a globalconsulting firm in human capital and financial management and changes are made accordingly to ensure weremain competitive. Starting wages for entry level positions are maintainedsignificantly above the federal and state minimumwages. Minimum wages are 18.08% above the WashingtonState’s minimum wage, which is the highest in theUnited States. 401K Plan Employee Assistance Program Ten Paid Holidays Vacation/Paid Time Off Education Reimbursement Medical, Dental, Vision, and Prescription Drug Coverage Wellness Program Life Insurance 24/7 Nurses Line Accidental Death and Dismemberment Coverage Short-Term and Long-Term DisabilitySince the inception of its employee wellness program, employee health risk data has been collected and evaluatedannually. As a result, additional financial incentives are introduced to encourage employee weight loss, improveddisease management and counseling, and disease risk management. Employees receive awards on a Health SavingsAccount debit card, including rewards for participating for multiple years in the wellness program.
COMMUNITY SUPPORT and VOLUNTEERISMWe are conscientious about our impact on the environment and in our communities, and we do what wecan to make a positive difference.This report highlights just a few efforts to demonstrate the amazing amount of generosity and goodwill provided by our employees andencouraged by our neighborly culture. Each year, through a formal community support program, Tree Top contributes nearly a half a million dollars to more than 50charitable organizations. Significant financial support to improve agricultural practices is provided to Washington State University’s (WSU) Tree Fruit ResearchProgram. Tree Top’s gift to WSU helps fund the planting and infrastructure of a research orchard in Central Washington. The researchorchard will be used to test a variety of new methods to reduce water use and grow trees under drought conditions anticipated withglobal warming. While the majority of the Cooperative’s community investment is directed toward charitable organizations providing programs andservices to benefit youth, Tree Top also responded to the needs of rural communities in Washington ravaged by wildfires over thepast two years. Employee contributions of time and money are continually fostered and positively recognized. Each month, our employee newsletterfeatures articles demonstrating citizenship and recognizing employee efforts. Each fall, employees organize an internal United Way campaign with a pledge drive, auctions, bakes sales and more to raiseapproximately 60,000 annually. And, each December, Tree Top takes the lead on the KNDO Family Food Drive to benefit theNorthwest Harvest food bank. The Food Drive support includes volunteering, food collection, and donating an entire semi-load offruit products, as well as a 10,000 cash gift. Another long-standing tradition of caring for others is the Tree Top Foster Children’s Christmas Party on the company’s Selah Campus.The event is organized for those children deemed the neediest among families registered with the Department of Health and HumanServices. To brighten these children’s holidays and to show them care, each child receives personalized gifts, treats, a visit from Santa,and an afternoon of crafts and games. Each spring, employees join the Company to raise over 20,000 for the Children’s Miracle Network. These funds are used to supporthospitals caring for children throughout our service areas.GOOD DEEDS RECOGNIZED BY OTHERS: Past winner and recently nominated and recognized for the NationalAssociation of Secretary of State Medallion Award for CorporateCitizenship – the highest honor a Corporation can receive for such. Awarded and recognized by the United Way of Central Washington for fiveconsecutive years for Tree Top’s Distinguished Support of Human Services. Washington Green Award – Silver Category for Agricultural BusinessSustainability EffortsA LONG TRADITIONOF COMMUNITYSUPPORT AND CARECONTINUES. IN FY2015TREE TOP PROUDLYCONTRIBUTED ATOTAL OF 423,836 INCASH AND PRODUCT.2015 WASHINGTON FOODAND BEVERAGE PROCESSOROF THE YEAR – AS NAMED BY ACOMMITTEE OF MANUFACTURINGEXPERTS FOR THE SEATTLE BUSINESSMAGAZINE’S MANUFACTURING AWARDS.FOR INFORMATION ABOUT THIS REPORT OR TOREQUEST ADDITIONAL COPIES PLEASE CONTACT:Corporate Communications Director, Tree TopPO Box 248 Selah, WA 98942-0248(509) 697-7251 www.treetop.com
Unilever’s Sustainable Agriculture Code is renowned globally as one of the most stringent codes related to sustainable growing. With guidance from Tree Top’s trained, specialty fruit procurement staff, our growers have obtained the prestigious certificate of compliance, with the Unilever Sustainab
