In 2021, we conducted a multi-dimensional materiality assessment, which delivered results that remain valid for our business today. The assessment process consisted of an outside-in analysis, in which we assessed the impact of sustainability issues on Devro and its influence on our success and future viability. In addition, we included the view of key internal and external stakeholders, employees, shareholders, industry associations and non-governmental organizations. We also applied the UN Sustainable Development Goals and other sources including rating agencies and industry standards as frameworks and benchmarks for assessing materiality. This process identified twelve key considerations which we condensed into the five focus areas mentioned below.

To tackle Scope 3 emissions, we conducted a pilot farm-to-gate lifecycle analysis of our Scope 3 exposure and combined this with financial and supplier information. As a result, we were able to identify the specific Scope 3 categories that make up most of our supply chain carbon. This will help us better plan our net-zero journey. Specifically, we aim to cut our Scope 1, 2, and 3 emissions by at least 90% from a 2020 base year, with any residual emissions neutralized through the permanent capture and storage of an equivalent amount of carbon from the atmosphere.

Although energy and emissions are important priorities at Devro, we have long taken a holistic approach to environmental protection. As our materiality matrix shows, managing water sustainably is also crucial to us.

Our efforts to conserve this important natural resource focus on reducing water consumption by 50% by 2050. We have already made good progress towards achieving this ambitious target and reduced water usage by 12% compared to 2020. In addition to cutting our freshwater consumption, we are committed to purifying used water and minimizing the negative impacts of water discharge. We are also investigating opportunities to re-use water in production processes after filtration and chemical treatment. However, since potable water is required in food production processes, our water recycling capabilities are limited. At four of our major sites, we operate our own wastewater treatment plants which not only meet local regulatory requirements, but also reduce the burden on municipal wastewater treatment. In Scotland, we partially treat our effluent to ensure we meet the applicable outflow parameters before discharging it directly into the public sewerage system. In the Czech Republic, we treat municipal wastewater alongside our own prior to discharge, and thus support public systems.

The health, safety and well-being of our employees is crucial to us. In 2023 we continued to progress our top line plan to achieve a zero harm culture/community and to have all our colleagues – THINK SAFE, WORK SAFE AND GO HOME (AND RETURN) SAFE EVERY DAY.

We renewed our drive to relentlessly pursue excellence in risk management and a generative, mature health and safety culture. This involves two key programs – Life Saving Rules/MY ZERO (risk) and Hearts and Minds (culture). There are a number of tools within these programs that we will examine for their potential to improve the processes moving forward.

In 2023 we commenced phase two of the Hearts and Minds program. We carried out a new cultural surveying approach covering several sites (with the others planned for the first half of 2024). We also conducted our sixth consecutive annual safety month in October, which this year focused on a variety of areas including remote working, safe driving, health and well-being. Here, most of our employees interacted globally via Teams virtual meetings or face-to-face at on-site events.

Crucially linked to safeguarding health and safety in the workplace are training and development. At Devro, we systematically train our employees on health and safety and monitor their participation. Mandatory training also encompasses compliance topics, information security and data protection, and we make sure it is delivered in a timely and easily accessible manner.

However, our training programs reach far beyond regulatory issues and contribute to holistic employee development. We support lifelong learning, creating opportunities for our employees to grow and develop. This provides benefits for both Devro – in the form of a skilled workforce – and for employees in terms of their personal and professional development.

At Devro, looking after the interests of people also extends to employees in our supply chain. It is crucial for us that our suppliers also adhere to the same values and principles of transparency and respect as we do. We want to make sure that our products are sourced and manufactured in a fair, ethical and environmentally responsible manner.

To promote responsibility along our supply chain, we use questionnaires and audits to monitor our suppliers, including physical site audits for all our major ingredient suppliers and for new suppliers. We request information from all our suppliers on social issues, including child and forced labor, equal opportunities, non-discrimination, freedom of association, labor practices, and health and safety standards. During physical audits of raw material suppliers, we evaluate the risks of human rights violations and labor conditions, although these risks tend to be low given that our suppliers are large and reputable organizations.

Regarding environmental aspects, we examine environmental policies, the existence of environmental management systems and third-party certification. In our questionnaires, we request specific information on environmental performance (e.g. emissions, water and resource use, and related targets) and follow this up in our physical audits, where we discuss any non-conformance and agreed actions.

Offering responsible and quality products is another key element of our sustainable management. To pursue a systematic approach to quality management, all of our production sites are certified to ISO 9001, the world’s leading standard on quality management, and to FSSC 22000, a globally recognized food safety standard.

In line with our management approach, our modern processing sites use state-of-the-art production equipment, including a high degree of automation to minimize handling. Moreover, we source from countries and regions (UK, EU, US and Australia) with high animal welfare standards for all our production. To provide transparency, we offer customers full bovine collagen traceability back to the individual animal as far as possible. However, we regard transparency as an issue that is not only important for customers, but also for all stakeholders. This is why our Global Food Safety and Quality Statements are freely available on our website.

Offering our customers not only high-quality, but also innovative products is another aspect of our customer responsibility. Developing new products and technologies to meet customer expectations and increase the efficiency of our processes is a core focus of our business. We are aware that we could lower our Scope 3 emissions by altering the raw materials in our casings. The carbon footprint of porcine and poultry-based casings is substantially lower than that of their bovine counterparts. Plant-based solutions may also offer substantially lower greenhouse gas emissions. While we already offer porcine-based casings in all formats, and poultry ones in gel, customer demand is still nascent at this point. This is why we are looking for other ways to cut emissions, as explained in our spotlight on energy efficiency.

In 2023, we also installed a new dryer waste heat recovery system at our Moodiesburn facility in Scotland. The system will generate annual CO₂ savings of 2,175 t CO₂-eq through a 20% reduction in gas consumption.

We are proud to say that Devro has become a recognized player when it comes to fighting climate change. To further drive feasibility studies on decarbonization, we received funding from the Scottish government in 2023 – underscoring the groundbreaking work we do.

To reach our emissions goals, we remain steadfast in our commitment to increasing energy efficiency and alternative energy use. By 2030, our entire energy consumption is set to come from regenerative sources, and we also seek to decarbonize our heat consumption.