Dr. Oetker

RATING

SECTOR

Food, Soft Beverages, Alcohol & Tobacco

WEBSITE

CONTACT

Address: Lutterstrasse 14
City: Bielefeld
State: (D-33617)

Tel: +49 521 155 2862
Fax: +49 521 155 2995
Email: presse@oetker.de

STOCK EXCHANGE

EMPLOYEES

34,060

CHIEF SUSTAINABILITY OFFICER

Catherine Miller

AWARDS

CONTENT SOURCE

2014 Supplier GHG Report

2019 Annual report

FURTHER READING

Report created by Kavita Kripalani

Company Title

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Dr. Oetker is a German multinational company that produces baking powder, cake mixes, frozen pizza, pudding, cake decoration, cornflakes, and various other products.

Dr. Oetker products deliver not only great food experiences but can also be prepared without any previous knowledge of cooking and baking. Even those who have little time can experience the pleasure of home-made delicacies. 

At Dr. Oetker, international teams collaborate to create new innovative products and services for their markets. That is why they encourage their employees to come up with new ideas by combining their thoughts and wishes with consumer trends and market intelligence. They believe that there are no limits to creativity and that everyone can contribute with new and innovative ideas.

Company Sustainability Activity

Oetker Group companies assume ecological and social responsibility in concert with economic value creation. In so doing, they fulfill key requirements for the long-term success of their business.

On an economic level, safeguarding and enhancing created values always takes priority. The need to protect the environment is deeply rooted in their corporate governance. they strive to constantly improve the high environmental standard they have already attained. Oetker Group companies are also aware of their roots in society, are deeply committed to employee welfare and social issues, and thus base the Oetker Group’s relationship to society on a foundation of trust.

Highlights

  • The consideration of sustainability aspects also plays an important role in the selection and purchase of the necessary basic ingredients and materials. The company exerts as much influence as it can by applying proprietary, internationally valid purchasing standards and vetting suppliers
  • Dr. Oetker markets its products worldwide. To this end, it is represented by distribution and production sites in some 40 countries. The company bases its coverage of sustainability on the universally recognised guidelines of the Global Reporting Initiative (GRI)

Targets

  • Complete the full integration of all locations into the food safety system in line with the ISO 22000 standard by 2015 (2014 Sustainability report)
  • Purchasing pursues three main goals in relation to sustainability: 
    • Creating transparency: critical raw materials are identified and monitored. 
    • Creating value: sustainability is ensured along the entire value-added chain in economic, ecological and social terms. 
    • Avoiding risks: critical raw materials are managed sustainably and substituted whenever possible
 

Progress

  • High production standards ensure effective protection against possible environmental and safety risks. Increasing signs of climate change, such as heat periods, lack of water or heavy rain, can have a negative impact on crop yields and thus on the procurement of raw materials, as well as on the locations of the group companies and consumer behavior. The Oetker Group is therefore committed to responsible use of resources.
  • The Radeberger Group has firmly anchored EcoVadis in the procurement process. This tool is used for supplier management and supplier evaluation and makes a decisive contribution to measuring sustainability performance and the standards of existing and potential suppliers.
  • In 2019, the company focused on purchase-to-pay (P2P) processes, which were further optimized with the introduction of ProSite, a modern business-to-business (B2B) procurement marketplace. In the procurement of raw materials, the partnership with farmers for the direct purchase of malting barley was expanded. 
  • The advantages of the partnership include planning security for both contracting parties, as multi year fixed prices have been agreed that are independent of fluctuating world market prices. 
  • The Radeberger Group also strengthened regional agriculture by promoting biodiversity measures.
  • Diversification through different suppliers and further measures to secure volumes reduces other procurement risks. However, as a result of the spread of the coronavirus, there may be impairments in the supply chains and thus raw material shortages and production bottlenecks or failures.
  • Increasing signs of climate change, such as heat periods, lack of water or heavy rain, can have a negative impact on crop yields and thus on the procurement of raw materials, as well as on the locations of the group companies and consumer behavior. The Oetker Group is therefore committed to responsible use of resources.
  • In 2019, the absenteeism rate was 1.8% and the number of occupational accidents was 18.

Certificates

  • All national locations were successfully ISO 50001 certified in 2012
 

United Nations Sustainable Development Goals

United Nations SDGs Compliance

The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, Dr. Oetker has attempted to be compliant with SDGs.

SDG 3

  • Dr. Oetker has organised occupational health and safety in line with OHSAS 18001, and signed up to the European Union’s Luxembourg Declaration on Workplace Health Promotion as early as 1999
  • Furthermore, the company has implemented numerous health promotion models aimed at enhancing the mental and physical fitness of all members of staff. When structuring health programmes, the locations choose different areas of focus depending on national and cultural conditions, but with early detection and preventative care, as well as the promotion of health awareness, to the fore. Moreover, the company encourages its employees to make their own health protection efforts by organising fairs and initiatives dealing with healthy nutrition and a healthy lifestyle at home and supporting a variety of sporting and physical exercise initiatives

SDG 12

  • The basis for ensuring raw-ingredient quality is a comprehensive supplier and specifications management regime. The desired quality characteristics are described in detail in the specifications. They are part of the contracts and the basis for the quality inspections to be carried out upon receipt of the goods. Suppliers are constantly vetted for their “quality capability”. This is done chiefly by regular external audits whose results feed into the supplier evaluations.
  • Only when all tests have been successfully completed are the raw ingredients released for further processing. 
  • As part of product development, the quality parameters and characteristics of the raw ingredients are laid down in detailed specifications and audit plans with which selected suppliers must comply. 
  • The weekly working time, as well as the permissible daily maximum working time, must at least comply with customary national legislation and directives. Furthermore, wage levels must meet the statutory or industry standard, whichever is the higher.
  • Successful supplier audits are followed up by regular visits to the suppliers. If a supplier fails to meet requirements, an action plan is drawn up and a period set within which subsequent improvements have to be implemented. In this way, the company’s standards are also established at the suppliers, are supported by them and their compliance ensured.

SDG 17 

  • Partnership with SOS Children’s Villages in their own countries. Currently, these are locations in Belgium, Finland, France, Italy, Canada, Croatia, the Netherlands, Austria, Poland, Romania, Serbia, the Czech Republic and Hungary. This is more than just a matter of financial help: a multiplicity of activities and the personal contact of employees breathe life into the partnership.
 

Evaluation

This evaluation is based upon the only sustainability report that could be located for the company, which was from 2014. It is also based upon their latest annual report that could be found, from 2019. In addition, the reports are not easily accessible and are not prominently visible on their website.

The company has alluded to few certificates and is found in a few awards and listings. 

The company fails to mention SDGs and sets weak targets. 

The company barely aligns with just 3 UN SDGs, reflecting their lack of consideration for sustainability. The language used in their reports is vague and they do not communicate transparently about their business practices. The references to sustainability that they do have in their reports are not evidenced by actual data to support their claims. 

This company has been rated a D. 

Analyst Outlook: Neutral

The company does not prioritize sustainable business practices. Their overall notion of disengagement brings their credibility into question with regard to the scant sustainability claims they do make.  

Key Points

  • Most recent Sustainability report located from 2014; most recent annual report from 2019
  • Targets and progress are vague
  • No explicit reference to SDGs, and bare alignment with just 3
  • Commitments to sustainability are extremely vague
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