corporate responsibility report europe 2014
Transcription
corporate responsibility report europe 2014
CORPORATE RESPONSIBILITY REPORT EUROPE 2014 Because We Care Foreword from the Managing Director At the core of what we do at Amway are strong values that reflect our corporate responsibility – caring for people both within and outside our business, ensuring our products contribute to better well-being and a more sustainable world, and continuing to improve the performance of our processes. In 2014, the global revenues of Amway’s parent company, Alticor Inc., were 10.8 billion US Dollars, making us one of the largest direct selling companies in the world. That success has been built on long term growth since 1959. But with that success comes a duty of responsibility; that’s why we continue to strive towards being an ever more responsible company and having goals that fit with the needs of a changing planet. The Amway One by One campaign continues to make a positive impact on children’s lives. I would like to say a big thank you to all the people who contributed their time and energy to this great cause. As part of this, we raised 100,000 US Dollars this year to support the Tutudesk Campaign, which aims to provide lap desks to 20 million school children in South Africa by 2020. We also supported many other projects this year – with employees and distributors giving financial donations as well as their time. This included the Amway Volunteering Day which involved volunteers in 26 countries in Europe and South Africa. As a leader in selling food supplements(1), vitamins and minerals, we are focused on helping to address malnutrition. We aim to improve the nutritional value of malnourished children’s diets from the ages of 6 months to 5 years old. This has led to the development of NUTRILITE Little Bits, a micronutrient supplement. We cooperate with NGOs to pool our expertise through the NUTRILITE Power of 5 Campaign, where Amway’s technical knowhow is combined with these NGOs’ on-the-ground programmes. the amount of non-grid wind power. In Europe, we have reduced our CO2 emissions from flights by 14% over the last two years alone – as is shown in our reporting following the guidelines of the Global Reporting Initiative (GRI). In 2015 we plan to launch the Think Act Save campaign in all our European affiliates to recognize the contribution each of us can make to the environment. Green Champion will help to promote a better understanding of sustainable living. At the same time, as a company that aims to empower people to take control of their lives and create opportunities for themselves, we believe that boosting entrepreneurship can play a significant role in tackling Europe’s challenges. Our long-standing support for women, youths, but also over-50s – three groups at the heart of our business – has become even more important in these tough economic times. And alongside our Amway Global Entrepreneurship Report, we aim to build on establishing a 50+ Entrepreneurship Platform. Our work to help people also includes training and career development opportunities for employees through Amway University. This is combined with a caring human resources policy ensuring we hire and keep the best people in a diverse environment. Creating opportunities that foster a sense of community in the workplace are also very important to us. This includes an Amway Europe soccer tournament and the Amway Volunteering Day. Our distributors are an equally vital part of our community, and we work hard to support them by providing new skills, through the Amway Academy and Amway Business Centers. I see strong opportunities for 2015 and beyond. Our commitment to nutrition, communities, sustainability and entrepreneurship will help us continue to grow both as a company and as an actor for positive change across Europe and around the world. As we care for children, so must we care for the planet. We focus on water, waste, energy, reducing CO2 emissions and making our agricultural and production processes more efficient. As a group, we have a global goal to reduce water and energy use and double Peter Strydom Managing Director Amway Europe Promoting ENTREPRENEURSHIP in Europe Because We Care CONTENTS Promoting entrepreneurship in Europe • Insights on the 50+ group on entrepreneurship Entrepreneurship in Action • • • • Bringing together European stakeholders European 50+ Entrepreneurship Platform New website supporting sustainable self-employment in Austria Supporting our distributors – Amway Academy and the Amway Entrepreneurship Programme PROMOTING ENTREPRENEURSHIP IN EUROPE Although it is home to some of the world’s most vibrant companies, Europeans are, by comparison with other parts of the world, reluctant entrepreneurs(1). Amway believes that helping Europeans to fully embrace entrepreneurship will have a significant impact in mitigating the human and societal costs of the financial crisis, ongoing competitiveness challenges and long-term demographic changes by providing new opportunities for self-fulfillment and employment for an increasing number of older people. Boosting entrepreneurship can play a major role in kick starting economies, transforming communities, helping people take control of their lives and create opportunities for themselves. This is why Amway believes that entrepreneurship in Europe is more important than ever and our goal is to help Europe grow a new generation of young and older entrepreneurs. Amway understands that entrepreneurship is particularly crucial in ensuring that society continues to harness the skills, knowledge and experience of over-50s. On the other side, it can be a vital way for this age group to define a new, central role for themselves in Europe’s societies as role models and mentors for generations of current and future entrepreneurs. Encouraging more 50-plus Europeans to start their own businesses or mentor others is vital in of itself. However, it is also an important way to help provide new unemployment opportunities in a difficult economic climate. The 50-64 age segment of the population has grown from 17.9% of the population of the EU 28 in 2004 to 19.9% in 2014, while in the same period the 65-89 age group has gone from 12.5 to 13.4% and the 80+ population has grown from 3.9% to 5.1%(2). This group has also suffered from economic turmoil in recent years: OECD statistics show that the 55-64 age group in the EU 28 has seen unemployment increase from 5.1 to 7.4% since 2008(3), with some countries suffering more than others. In Ireland, for example, the unemployment rate for this age group tripled between 2008 and 2013 (from 3.4% to 10.6%), and it is even worse in Spain, where one in five older people are out of a job(4). This is a particular challenge for this age group because they are more likely to suffer from longterm unemployment due to factors like age discrimination, reduced perceived mobility and flexibility in the workplace, and higher labour costs. 8 INSIGHTS ON THE 50+ GROUP ON ENTREPRENEURSHIP Amway has been collecting and analyzing data in relation to entrepreneurship on a regular basis since 2008 through our Amway Global Entrepreneurship Report. The 2014 Report now surveys almost 44,000 people across 38 countries worldwide and plays an important role in deepening our understanding of what motivates entrepreneurs and gaining greater insight into the world in which they operate. As our most recent study (conducted in 38 countries by the market research institution GfK (Gesellschaft für Konsumforschung) Nuremberg with the Technical University of Munich)(5) showed in regard to over-50s, that they are a particularly tough group to encourage to get involved in entrepreneurship. Indeed, the 50 demographic group has a very low self-employment rate, currently 6%, whilst the self-employment rate amongst the 35-49 respondents is twice as high at 12%. This is despite 66% of this age group viewing entrepreneurship positively (with Scandinavia scoring highest – 91% of Swedes surveyed had a positive opinion of entrepreneurship, as well as 90% of Finns and 86% of Danes). More than a quarter of over-50s said that they could see themselves starting their own business – though this is lower than younger groups – 49% of under-35s and 42% of the 35-49 group said that they saw themselves potentially becoming entrepreneurs. How can we encourage more people in this age group to take the leap to starting their own businesses? The survey shows that certain factors are particularly attractive: 44% saw independence as a key reason for becoming entrepreneurs, while 35% focused on selffulfillment. Many agreed on the positive impact of education: 57% of 50+ respondents think that entrepreneurship can be taught, while only 19% have participated in entrepreneurship education programmes. Respondents in Finland, Belgium and the Netherlands were happiest with the current training options, while Greeks, Portuguese and Croatians were least satisfied. GLOBAL ENTREPRENEURSHIP REPORT 2 0 1 4 ADVANCING ENTREPRENEURSHIP EDUCATION 1 Entrepreneurship: Releasing the potential of the 50+ generation - Workshop in Brussels 9 ENTREPRENEURSHIP SOCIETAL CHALLENGE/SITUATION +15% +50 +50 2005 2015 Over the last decade, the over-50 group has grown by nearly 15%. 1 +50 By 2020 a third of the working-age population in Europe will be over 50. +50 +50 +50 +50 +50 +50 +50 +50 +50 +50 6% AGER reveals only 6% of the 50+ is SELF-EMPLOYED 2 The over-50 group now face a major employment challenge in Europe. AMWAY IN ACTION PROVIDING SOLUTIONS BY HARNESSING THE POTENTIAL OF 50+ 50+ Act as a thought leader in promoting the importance of 50+ entrepreneurship at EU level, through workshops, etc. 50+ Entrepreneurship Platform Website INDIVIDUAL AND SOCIETAL BENEFITS: Achieve Independence from an employer Empowerment by helping people create more opportunities for themselves Help the 50+ remain economically active, contribute to economic growth and facilitate innovation Prevent loss of valuable skills and facilitate their transfer to newer generations 1 EUROSTAT 2 AGER 2014 Infographic based on the following study: 2014 AGER – July 2014 Sample 43,902 people in 38 countries http://www.amwayentrepreneurshipreport.com/home 10 ENTREPRENEURSHIP IN ACTION Amway is a direct facilitator of entrepreneurship through its business model. Over 250,000 distributors are developing their own businesses across Europe based on Amway products. We deal with their needs and respond to their challenges on a daily basis, providing training via the Amway Academy and ongoing support and mentoring. Programs in Austria on the importance how to integrate sustainability for one-person companies supplement this offer and especially bring it to the wider society. With more than a quarter of our distributors being over 50, the same approach is followed in regard to entrepreneurship in this age group. BRINGING TOGETHER EUROPEAN STAKEHOLDERS Amway recognises the importance of promoting entrepreneurship amongst the over-50 generation. We are playing a leadership role in fostering dialogue and understanding as well as building greater awareness of the importance of this demographic in entrepreneurship terms among key EU audiences. In 2014, Amway organised a workshop in Brussels entitled “Entrepreneurship: Releasing the potential of the 50+ generation”, that brought together a wide range of stakeholders. The workshop explored the main barriers to over-50 entrepreneurship, as well as approaches to help build awareness and create a more supportive environment for over-50 entrepreneurship across Europe. Amway aims to build on this by establishing a European platform for over-50 entrepreneurship. 11 12 EUROPEAN 50+ ENTREPRENEURSHIP PLATFORM Amway has driven the creation of the European 50+ Entrepreneurship Platform planned to be launched in 2015, which is intended to help raise the profile and importance of 50+ Entrepreneurship. It creates a policy framework as well as initiatives that help to develop a supportive ecosystem for 50+ Entrepreneurs in Europe. The Platform’s members and supporters include Think Young, Business in the Community (BITC) , the Centre for Entrepreneurs European Business Network, University of Bratislava, Solvay Business School and Aalto University’s Center for Small Business, as well as NGOs and private sector businesses. The platform aims to build greater awareness and political support for 50+ entrepreneurship, inform and shape the policy environment on this vital issue, facilitate and encourage knowledge-sharing, identify and promote the need for more European initiatives and research, and build understanding among both the entrepreneurship community and at Member State level of the importance of encouraging more of our older citizens to start their own businesses. Work will include EU institutional engagement and broader thought leadership and information initiatives. One of its key tools will be a 50+ entrepreneurship website which, over time, will aim to become the ‘go to’ portal for policy makers and other stakeholders working and interested in the field of 50+ entrepreneurship. Targeted mainly at EU policy-makers, it will help to build greater awareness and political support, inform and shape the policy environment, and serve as a central resource for the latest reports, studies, publications, media appearances and other materials in the field. NEW WEBSITE SUPPORTING SUSTAINABLE SELF-EMPLOYMENT IN AUSTRIA Another platform Amway has worked on together with the Chamber of Commerce Austria, respACT - Austrian business council for sustainable development, and consultants Hauska & Partners has been launched in 2014: www.nachhaltigselbstaendig.at –. It accompanies one-person businesses in taking over responsibility towards all stakeholder groups and this way having an impact on the environment and society. It provides five-step instructions including a self-test to identify where the business stands as well as data & facts on entrepreneurship. It rounds up with successful examples of sustainable entrepreneurs. It uniquely focuses on providing Corporate Social Responsibility guidance to these entrepreneurs are they newcomers at the start or more experienced entrepreneurs looking for suggestions for further development. 13 14 SUPPORTING OUR DISTRIBUTORS – AMWAY ACADEMY AND THE AMWAY ENTREPRENEURSHIP PROGRAMME The Amway Academy focusses on supporting an entrepreneurial spirit amongst our self-employed distributors by providing them the help they need to understand our products and build successful businesses for themselves. The Amway Entrepreneurship Programme offers greater leadership training, aiming to help new distributors get off to a fast start and then develop a long term sustainable business. This highly selective, 6-month, 2 step world-class training programme gives distributors a blended learning approach incorporating the best of both classroom and virtual learning opportunities. The first edition in the UK was completed by the 40 participants in 2014, and will be repeated in September 2015. The Amway Entrepreneurship Programme was further used to inspire the German “Restart” initiative, which is still ongoing, and based on the European pilots South Africa held a “train the trainer” session in April 2014 in view of launching its own similar programme. In addition, our Leader Coaching Programme, providing a 6-8-month interactive blended course approach (online and offline) to already active distributors who want to achieve more, is in its 4th year now in the UK with more than 100 participants. It is also continued in Ukraine in 2014, with 56 distributors taking part. These are two examples of the great variety of learning offers for our distributors. We launched the Amway Academy in 2008/2009 as an ambitious educational tool available in 25 languages and aiming to help distributors through e-learning courses, web presentations, certification programmes, classroom and personal training courses. Programmes are evaluated and measured by external bodies including the Learning Lab in Duisburg the Department of Psychology at LudwigMaximilians-University in Munich, Germany, the Women’s Academy in Munich and J&P GmbH Recruiting Development in Munich. We adapt our courses constantly, realising that different channels serve different needs. The Amway Academy brings all this under one roof, including more and more interactive learning with games, as well as increasing amounts of video based learning combining both e-learning and face-to-face teaching. In total, 380,604 instructor-led training units were provided in 2014, as well as 193,709 e-learning units. Our trainers are all certified by Amway and trained regularly throughout the year. In addition, every two years, so called Trainer Camps take place in different parts of the world. These bigger conferences aim to ensure coaches are aware of the latest learning methods, as well as making sure they understand and promote the Amway culture and strategy. It is, additionally, a chance for coaches to get to know one another and share best practices. The latest European iteration was in 2014, involving digital training and coaching on presentation skills by the Royal Academy of Dramatic Art London. REFERENCES (1) http://www.amwayentrepreneurshipreport.tum.de/fileadmin/w00bfs/www/2014/ Amway_Global_Entrepreneurship_Report_2014.pdf (2) http://ec.europa.eu/eurostat/tgm/refreshTableAction. do?tab=table&plugin=1&pcode=tps00010&language=fr (3) OECD statistics: http://stats.oecd.org/index.aspx?queryid=36499# (4) OECD statistics: http://stats.oecd.org/index.aspx?queryid=36499# (5) http://www.amwayentrepreneurshipreport.tum.de/index.php?id=5&L=1 15 FIGHTING MALNUTRITION Because We Care CONTENTS Fighting Malnutrition Malnutrition: a global issue Amway – helping tackle malnutrition worldwide • • NUTRILITE Little Bits - a natural supplement for children The NUTRILITE™ Power of 5 Campaign – a global effort to fight childhood malnutrition FIGHTING MALNUTRITION Fighting hunger is a major challenge worldwide. Yet beyond hunger itself, there is another major issue which affects hundreds of millions of people across the globe – ensuring people, and children in particular, get the right nutritional balance, thereby ensuring that they live longer, healthier and happier lives(1). Getting enough calories is not enough. The lack of sufficient vitamins and minerals in people’s diet can lead to impaired development, disease and death, and is a particular issue among infants and young people. Malnutrition also prevents communities in the poorest part of the world from lifting themselves out of poverty(2). Amway aims to help people around the world have a healthier and more prosperous future and is committed to helping tackle the problem of malnutrition amongst young people – specifically, children from 6 months to 5 years old. 20 MALNUTRITION: A GLOBAL ISSUE Although malnutrition is a global problem that affects all ages, it is children in the developing world that are hit hardest. A lack of proper nutrition in the first 5 years prevents brain and body development from occurring properly. Chronic malnutrition, or under-nutrition, makes children susceptible to disease and underdevelopment. Children deprived of adequate nutrition during the first 1,000 days of life often have stunted growth, poor cognitive development and low immunity to disease(3). As the Micronutrient Initiative points out, 18 million babies born mentally impaired due to iodine deficiency each year(4). This lack of development can have lasting and irreversible effects, making children susceptible to disease and leading to health problems later in life. In extreme cases, malnutrition even causes death. According to the World Health Organisation, seven million children under the age of 5 die each year from preventable causes – and malnutrition is the underlying cause of 45 percent of these deaths(5). The fight against malnutrition can have far-reaching impact. Proper nutrition is important to the development of both individuals and nations. It is estimated that a lack of adequate nourishment can reduce a nation’s economic advancement by at least 8 percent because of loss related to productivity, cognition and reduced schooling(6). Ensuring better nutrition is available to even the poorest communities is a key goal for us, because we believe every child should have a chance to grow up and develop properly. 21 NUTRITION SOCIETAL CHALLENGE 6 months > 5 year Malnutrition affects hundreds of millions of people across the globe, especially kids from 6 months to 5 year olds. 18 million I Iodium 18 million babies born mentally impaired due to iodine deficiency each year 1 Children deprived of adequate nutrition during the first 1,000 days of life often have stunted growth, poor cognitive development and low immunity to disease 7.000.000 children < 5 die due to malnutrition Seven million children under the age of 5 die each year from preventable causes 2 – and malnutrition is the underlying cause of 45 percent of these deaths.3 Malnutrition also prevents communities in the poorest part of the world from lifting themselves out of poverty. 4 AMWAY IN ACTION PROVIDING VITAMINS SUPPLEMENTS TO KIDS WORLDWIDE by 2016 15 countries nutrition,5 Amway is a leader in global providing vitamins and minerals to many via its NUTRILITE product range, a supplement mix born in 2006, which improves the nutritional value of children on a daily basis. In cooperation with the international charity CARE and other local development charities Amway launched the NUTRILITE Power of 5 Campaign in 2014, which aims to help kids in some of the world’s poorest communities – beginning in Zambia and Mexico, working with local NGOs Un Kilo de Ayuda and the Christian Alliance for Children in Zambia. This campaign is set to grow – and by 2016, NUTRILITE Power of 5 Campaign will be serving families in a total of 15 countries: including Brazil, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Indonesia, Honduras, Indonesia, Mexico, Panama, Venezuela, Vietnam, South Africa INDIVIDUAL AND SOCIETAL BENEFITS Fe 8% Iron Nutriline Little Bits provides 15 essential nutrients including vitamin C and helps mitigate the risk of a childhood micronutrient deficiency, including iron deficiency anaemia 1 Micronutrient Initiative 2 World Health Organisation 3 http://www.who.int/mediacentre/factsheets/fs178/en/ 4 http://www.micronutrient.org/english/View.asp?x=573 It helps people live better lives and achieve their full potential Proper nutrition is important to the development of nations too. It is estimated that a lack of adequate nourishment can reduce a nation’s economic advancement by at least 8 percent because of loss related to productivity, cognition and reduced schooling.6 5 http://www.who.int/healthinfo/global_burden_disease/GlobalHealthRisks_report_part2.pdf 6 Chapter 8 - Malnutrition: Global Economic Losses Attributable to Malnutrition 1900–2000 and Projections to 2050 pp. 247-272, by Sue Horton and Richard H. Steckel, in “How Much have Global Problems Cost the World? A Scorecard from 1900 to 2050”, edited by Bjørn Lomborg, Cambridge University Press, 2013 22 AMWAY HELPING TACKLE MALNUTRITION WORLDWIDE Amway is a leader in global nutrition(7), providing vitamins and minerals to many via its NUTRILITE product range. Our key markets are in developed European, North American and Asian countries, where our customers understand the benefits that our supplements can provide. However, as a responsible company that cares about the wellbeing of all global citizens, we also see that there is a more basic need for products that contribute to wellness. We aim to improve the nutritional value of malnourished children’s diets on a daily basis from the ages of 6 months to 5 years old. This has led to the development of NUTRILITE Little Bits, a micronutrient supplement. NUTRILITE LITTLE BITS - A NATURAL SUPPLEMENT FOR CHILDREN Carl Rehnborg, founder of NUTRILITE, was the initiator of product ideas that would utilise the power of NUTRILITE to help children suffering from nutrient deficiency. This led to a discovery in 2006 by workers on our sustainable farm in Brazil, who came across a simple solution to the malnourishment that plagued children in their community. They harvested, dried and compressed the nutrient-rich plants from their farms into a mix that could be added to the children’s food. In less than a decade, these two ideas became NUTRILITE Little Bits. It was developed to help reduce and prevent a childhood micronutrient deficiency, including iron deficiency anaemia based on WHO recommendations for children 6 months to 5 years old. It provides 15 essential nutrients including vitamin C which comes from the acerola cherries’ grown and harvested on our sustainable farms – it is one of most concentrated natural sources of this important vitamin – as well as Vitamin D which is needed for normal growth and development of bone in children, iron for normal cognitive development and Iodine for normal growth of children(8). Micronutrients: • Vitamin A • Vitamins B1, B2, B3, B6, B12 and folate • Vitamin C • Vitamin D • Vitamin E •Iron •Zinc •Copper •Selenium •Iodine The benefits of NUTRILITE Little Bits were confirmed by a 6-month clinical study of 1 to 5 year old children in the Mazahua area of Mexico. With the help of a local NGO, Un Kilo de Ayuda, children were given NUTRILITE Little Bits on a daily basis. By the end of the study, there were major increases in the health status of the children; with significant improvements in haemoglobin levels, anaemia status, weight, and fewer signs of stunting. 23 THE NUTRILITE™ POWER OF 5 CAMPAIGN A GLOBAL EFFORT TO FIGHT CHILDHOOD MALNUTRITION We believe that worldwide cooperation among corporations, governments and non-profit organisations is key to successfully addressing malnutrition. That is why we decided to build on our existing cooperation with international charity CARE and other local development charities, and launch the NUTRILITE Power of 5 Campaign in 2014. 24 The NUTRILITE Power of 5 Campaign brings together NUTRILITE by Amway, parents, children, distributors and NGOs to provide NUTRILITE Little Bits to infants and children in some of the world’s poorest communities – beginning in Zambia and Mexico, working with local NGOs Un Kilo de Ayuda and the Christian Alliance for Children in Zambia. Each partner focuses on what it does best. Under the Campaign, CARE acts as overall nutrition programme advisor, while also monitoring and reporting on progress. Amway helps CARE by undertaking research and developing the specific formulation of NUTRILITE Little Bits – these are provided to CARE and other NGO partners at cost. We also contribute to CARE’s administration costs, and employees, distributors and customers in Europe are also actively involved in raising funds for CARE and our NGO partners. Our partner CARE understands why this partnership is so important. Liz McLaughlin, CARE Associate Vice President for Institutional Fundraising and Partnerships, underlined that Little Bits and the NUTRILITE Power of 5 Campaign: “will have a huge impact on the lives of malnourished children.” (9) She added that CARE can’t complete its mission without the support of corporate partners such as Amway(10). This campaign is set to grow – and by 2016, we plan to have NUTRILITE Little Bits programmes serving families in a total of 15 countries: •Brazil •Colombia • Costa Rica • Dominican Republic • El Salvador •Guatemala •Haiti •Honduras •Indonesia •Mexico •Panama •Venezuela •Vietnam • South Africa •Zambia 25 26 (11) MORE ABOUT OUR PARTNERS CARE is a leading humanitarian organisation fighting global poverty with a special focus on working alongside poor girls and women because, equipped with the proper resources, they have the power to lift whole families and entire communities out of poverty. Last year, CARE worked in 84 countries and reached 83 million people around the world(12). Un Kilo de Ayuda fights malnutrition among children under the age of 5 in hundreds of communities throughout Mexico. Founded in 1984, their methodology consists of six main components: nutritional surveillance; anaemia detection; nutrition education; nutritional package distribution; neurodevelopment and early stimulation evaluation; and safe water. It applies these actions to 55,000 children in rural Mexico every 2 weeks(13). Christian Alliance for Children in Zambia, our partner in Zambia, was formed in 1997 with a mission to feed hungry children, to bring orphans and outcast children into families and to educate out of school children. NUTRILITE Little Bits is part of their Milk and Medicine Programme, which utilizes three interrelated strategies: distribution and provision of vitamins and minerals, medicine when it is not available to families through other means; and social work support(14). Solid Rock International is a Christian non-profit organisation focused on transforming the body, mind, and soul of the poor in the Dominican Republic. When Solid Rock International (formerly Solid Rock Missions) was first beginning as an organization in the early 1990s, the desire was, and still is today, to holistically serve the poor in the Dominican Republic by focusing on all aspects of health(15). Glasswing promotes strategic social investment through the creation of ‘action networks’ - among businesses, foundations, governmental, and non-profit organizations - with the aim of encouraging broader societal participation in improving quality of life(16). World Vision is a Christian humanitarian organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. World Vision works in nearly 100 countries, serving all people, regardless of religion, race, ethnicity, or gender(17). Amway supported the NUTRILITE Power of 5 Campaign by collecting handprints – for each handprint, Amway donated 1 US-Dollar to CARE. Over 71,462 were gathered in Europe, and globally Amway hopes to achieve the Guinness World Record for the biggest collage of handprints. [Pictures from handprint-collecting events will be included]. The handprinting activity was one of many ways in which Amway made significant efforts to raise awareness around Europe in 2014 around the issue of malnutrition. REFERENCES (1) http://www.who.int/healthinfo/global_burden_disease/GlobalHealthRisks_report_part2.pdf (2) http://www.micronutrient.org/english/View.asp?x=573 (3) http://www.unicef.org/nutrition/ (4) http://www.micronutrient.org/english/View.asp?x=573 (5) http://www.who.int/mediacentre/factsheets/fs178/en/ (6) Chapter 8 - Malnutrition: Global Economic Losses Attributable to Malnutrition 1900–2000 and Projections to 2050 pp. 247-272, by Sue Horton and Richard H. Steckel, in “How Much have Global Problems Cost the World? A Scorecard from 1900 to 2050”, edited by Bjørn Lomborg, Cambridge University Press, 2013 (7) Source Euromonitor International Limited; Vitamins and Dietary Supplements, World, GBN, Retail Value RSP, % breakdown, 2013: http://www.euromonitor.com/amway-claims (8) http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32010R0957; http://eur-lex.europa.eu/legal-content/EN/ ALL/?uri=CELEX:32009R0983 (9) http://powerof5.nutrilite.com/stories/nutrilite-childhood-malnutrition-expert-roundtable (10) http://globalnews.amway.com/ourstory/Article/citizenship/giving-malnourished-children-a-chance-against-hidden-hunger (11) http://powerof5.nutrilite.com/partnerships (12) http://www.care-international.org/ (13) https://www.unkilodeayuda.org.mx/ (14) http://www.cacz.org/ (15) https://www.solidrockinternational.org/who-we-are/ (16) http://glasswing.org/ (17) http://www.worldvision.org/ 27 ONE BY ONE HELPING CHILDREN ACROSS EUROPE Because We Care CONTENTS Action for children around the world The Amway One by One Campaign: helping children across Europe, Africa and around the world • Amway Volunteering Day – giving a helping hand Examples of Amway One by One projects supported in Europe in 2014 Amway is a family business that has long focused on supporting children. We believe that children are our future – and we must ensure that they have the best possible chances to grow up into healthy, happy, well-educated adults with all the opportunities they deserve Amway is committed to acting as an exemplary corporate citizen in the communities where we operate, through positive action to help children. Our Amway One by One Campaign for children is now 12 years old – that means twelve years of helping children to learn, grow and develop. Around the world, Amway has touched the lives of over 12 million kids – through a wide range of high-impact initiatives bringing together employees and distributors alike. 32 ACTION FOR CHILDREN AROUND THE WORLD UNICEF’s The State of the World’s Children(1) has studied the living conditions of the world’s young people for the past 30 years – and while much positive progress has been made in many parts of the globe, there is clearly much still to do. The 2.2 billion children living on our planet need us to continue making progress towards a healthier, safer and more inclusive world. As UNICEF and WHO point out, over 6 million children under 5 years of age die every year, mostly from preventable causes(2) (3), while many more young people are at risk and living below the poverty line. Also in Europe this number has increased since the beginning of the economic downturn(4) – in Ireland, Croatia, Latvia, Greece and Iceland, child poverty rates even rose by over 50% between 2008 and 2014(5). Across the 28 EU member states, 28% of under-18s are at risk of poverty and social exclusion(6). And young people face many other challenges, for example in regard to health – with one in three European 11-year-olds now obese(7). Helping marginalised children, encouraging sport, supporting healthy eating and lifestyles, and boosting educational opportunities, can help move Europe in a positive direction. We believe that children need the best possible start in life, and aim to contribute to making a positive change. Amway Volunteering Day in Hungary AMWAY ONE BY ONE CAMPAIGN: HELPING CHILDREN ACROSS EUROPE, AFRICA AND AROUND THE WORLD The Amway One by One Campaign for Children was founded by Amway as a global programme with the company, the distributors and employees work together to help children in need around the world. Amway Volunteering Day in Spain In 2014, the initiative reached 17,232 children across Europe, thanks to 33,649 volunteer hours contributed by distributors and employees – in addition to USD 636,519.86 in contributions (including USD 149,000 in UNICEF contributions). The campaign covered 77 projects in Europe– of which 41 dealt with health, 14 with education, and 22 did general fundraising. AMWAY VOLUNTEERING DAY – GIVING A HELPING HAND Amway Volunteering Day in the United Kingdom Following the Amway Global Volunteering Day in 2013 and to celebrate UN International Volunteering Day on December 5th 2014, Amway organised many different volunteering activities across Europe on this one day. Amway employees and distributors supported local initiatives that all focus on child nutrition and well-being. We believe that in order to truly be a good corporate citizen, we must encourage people at all levels of the business – both employees and distributors – to volunteer their time and expertise to turn ambitious projects into reality. 825 volunteers from 26 different countries participated. Amway Volunteering Day in Italy In Poland, employees organised a fun day involving theatre, gifts and food for the patients of the Child Health Centre Institute – while in Croatia, furniture was donated to a Children’s Home in Zagreb. In the Czech Republic our team decorated the Traumatology Center for children for Christmas. In Italy, we organised a meal packaging day for the NGO “Stop Hunger Now”. While in Norway we supported the NGO Kirkens Bymisjon in the ROBUST project to prevent and tackle youth problems among children from poor families who are often bullied and/or have health problems. Other countries saw information days organised on malnutrition and health – notably in Lyon, France. Meanwhile, in the UK and Ireland, distributors organised a raffle with hampers for charity. And at the European headquarters in Puchheim, Germany, 30 employees worked to create a play room for children at a refugee initial registration facility in Fuerstenfeldbruck. Amway Volunteering Day in Croatia 33 EXAMPLES OF ONE BY ONE PROJECTS SUPPORTED BY AMWAY EUROPE IN 2014 Country Project Community Europe Support to the “Tutudesk campaign” for schoolchildren Amway Europe and South Africa supported the Tutudesk campaign, which provides lapdesks for students who have no desk in School or at home. Austria Children’s cancer fundraising Donation to the Austrian Children’s Cancer Aid organisation Belgium Donations to children’s organisations Company donation to Terres Rouges (street children in Africa), Cité Joyeuse (school for disabled children) and SOS Children’s Village. Czech Republic Child traumatology centres Amway donated to the Kolecko Foundation in support of child traumatology centres. Czech Republic Donation to an orphanage Amway distributors donated products to an orphanage in the Czech Republic. Denmark Support for the “Julemærkefonden” foundation providing homes for special needs children Amway Denmark supported the Danish Foundation “Julemærkefonden”, which provides homes in Denmark for children that have special needs. In 2014, we made product donations, cash donations, organised a run for “Julemærkefonden” at community event in Copenhagen, provided 15 places at the Milan Junior Camps (soccer summer schools for children) in DK, and used a special logo in all e-mails sent from Amway Denmark to support the “Julemærkefonden”. Further, Amway Denmark collected waste after the Roskilden Festival to raise funds for the foundation. Finland Run to support girls’ education in Nepal (UNICEF) Amway Finland has a partnership with UNICEF Finland in supporting education for girls in Nepal (in line with the Finnish Government’s support). As part of this, staff and distributors ran for the programme each year at Naisten Kymppi (10 km run for women). Finland Supporting UNICEF Global Parent Programme 483 distributors in Finland supported the UNICEF Global Parent Programme. Germany Supporting child entrepreneurship Amway provided a cash donation to the Network for Teaching Entrepreneurship (NFTE) for supporting entrepreneurship education among children. Germany Supporting children’s rights Support of the festivities on children’s rights with the German Child Protection League via cash donations and volunteering. Germany School support Support for two elementary schools in Puchheim (cash donation, Amway has taken over the sponsorship of one of the Puchheim children’s forum’s projects on a cleaner environment). Germany Support for the Fuerstenfeldbruck music Cash donation to a Polish-German music and football youth camp. school Germany Supporting the Fuerstenfeldbruck foundation Taking over the cost and organization of postal services for the foundation. Germany Food banks More than 600 kg of pasta collected to be donated to food banks in Puchheim, Hamburg, Berlin, Muenster and Bayreuth. Germany UNICEF Run Schwerin Amway distributors raised money through a run. Greece Donation to children’s care and training centre Donating home care products to the Sikiarideio Foundation Open Care Training Center for children and young adults with intellectual and learning disabilities from the ages of 5 to 21. Greece Food donations to social grocery Donating food products on Easter to the Social Grocery of the Municipality of Marousi in Athens to support families in need. Hungary Supporting children’s hospitals Amway supported paediatric departments at hospitals in Gyor, Szekesfehervar and Debrecen and donated to SOTE Children’s Hospital via a Charity Cycling event and Budapest Half Marathon. Ireland Special Olympics Supporting the Special Olympics in Ireland by fundraising through raffles, prize draws and other activities at the Dublin centre with distributors and staff. Italy Football for disadvantaged children Continued cooperation with the Naples soccer tournament for disadvantaged children, started 3 year ago as part of the Goal by Goal initiative together with the AC Milan foundation, by supporting them with their press activities by giving visibility towards our channels. Italy Support to local Rome NGOs As part of the opening of the Amway Business Center in Rome, a cheque was given to the Municipality of Rome to support three different projects: restoration works at Falcone Borsellino and Fratelli Bandiera schools, as well as the purchase of two brand new seesaws especially designed for disabled children. Italy Supporting a children’s hospital Support of the Meyer Children’s Hospital in Florence by providing funds for the purchase of an advanced newborn dummy simulator for infant medical emergency training. Italy Donation to Mangwana NGO Funds were raised for the Mangwana NGO, an association which operates in Madagascar for social development of local communities, including initiatives for children’s education and environmental improvements. Lithuania Supporting the “Kablio parkas” sport centre To support the “Kablio parkas” sport centre, an NGO that helps talented young sportspeople, Amway gave a donation for each participant in the “Velomarathon” as part of the NUTRILITE team. Norway UNICEF Norway run for schools in Africa Support for schools in Africa - Amway ran for UNICEF at Sentrumsløbet in Oslo. 34 Norway Helping troubled youths Amway supported the Kirkens Bymisjon NGO in the ROBUST project, which aimed to prevent and tackle problems among children from poor families, as well as victims of bullying and young people with health problems. Poland Cooperation with the Upbringing Through Sport Foundation Amway organised events for 2400 children aged 9-12 years old with physical activity, education and entertainment in Warsaw, Poznan and Gdansk. Amway also supported the “Kids with Nature Run” and the Independence Day Run. Poland Donation to the Children’s Memorial Health Institute Amway donated around 350 games and toys for children at the Children’s Memorial Health Institute. Portugal Painting the APLAS cancer support facility Painting the new facility of the NGO APLAS, which supports families which have children with cancer in Casçais and Lisbon. Romania Junior Achievement Company Programme Supporting this educational programme which facilitates students’ access to learning through entrepreneurship activities with a special module related to marketing, sales and retail business. Romania Supporting the ASCHF-R Association for disabled children Sponsoring the ASCHF-R Association which helps children with disabilities, giving them equal opportunities to education. Romania Breakfast with Organizatia Salvati Copii for children Breakfast event with children from the NGO Organizatia Salvati Copii, the Foundation Save the Children. Slovakia Supporting the USMEV NGO helping children and families Supporting USMEV NGO, which looks after families in need and runs homes for children. Slovakia Decorating an Orphanage Decorating the premises of the Detský Domov Nadeje orphanage in Bernolákovo for Christmas. Slovenia Supporting the Slovenian association of friends of youth Supporting ZPMS – the Slovenian association of friends of youth, an organisation aimed at quality of life for children, young people and families and protecting rights of young people. Spain Donations for scholarships with Red Cross Spain (Cruz Roja) Supporting Red Cross Spain (Cruz Roja) in its work together with the Social Inclusion Area of the City Council for the marginalized village «El Gallinero» close to Madrid by donating for scholarships. Sweden Support for anti-bullying NGO Amway Sweden supported the Swedish Foundation “Friends” which helps children in Sweden that are being bullied in schools and/or in sports clubs – this support was via cash donations by Amway and distributors, a run for “Friends” at a community event in Stockholm, and 25 seats at the AC Milan Junior Camps – (soccer summer schools for children – in Sweden. Switzerland Donation to a disabled centre Donation to the Blumenhaus Buchegg for disabled people. Turkey Supporting volleyball in schools Amway supported the Seeds of Volleyball project in cooperation with the Turkish Volleyball Federation, which aims to promote volleyball nationwide in elementary schools. Turkey Donation of cleaning products and computers Amway donated cleaning products, laptops and desktop computers to schools, foundations and universities across Turkey. Ukraine Chestnut Run for children’s health A run to fundraise for the Children’s Centre of Cardiology and Cardiosurgery in Kyiv Ukraine Financial literacy for children Providing training on financial literacy and entrepreneurship for children aged 11-16 at schools and orphanages in different cities of Ukraine and shared experience at a final conference in December Ukraine Vth Kyiv City Marathon As the Team NUTRILITE, with 50 distributors and employees, had the biggest team in the event, Amway also organised the interactive Nutrilite-branded play zone for children with various sports activities; this was attended by over 150 children. Ukraine Amway Ukraine’s Employee Talent Team initiative The Amway Ukraine’s talent pool in 2014 organised a Week of charity for employees, where they had a fundraising initiative each day in the office. As the result, they were able to purchase toys for developmental and remedial work with children in the oncohematology department of the Sumy Regional Children’s Hospital, and a washing machine for a nursing home in the village Gruzke. Ukraine Distributor support for children’s sports A donation was given to a regional youth centre and a children’s sports centre, and an event in Ternopil focused on children’s sports and family outdoor activities. United Kingdom Support for Kids Company Supporting the “Kids company” (an organization that provides practical, emotional and educational support to vulnerable children and young people) by providing food packages full of healthy and Christmas food treats for disadvantaged children. Distributors packed up the items that were purchased and put them into food parcels. v v REFERENCES (4) http://resourcecentre.savethechildren.se/sites/default/files/documents/child-poverty- (1) http://www.unicef.org/sowc2014/numbers/documents/english/SOWC2014_In%20 (5) http://www.euractiv.com/sections/social-europe-jobs/child-poverty-rise-even-rich-eu- and-social-exclusion-in-europe-low-res.pdf Numbers_28%20Jan.pdf countries-309574 (2) http://www.unicef.org/sowc2014/numbers/documents/english/SOWC2014_In%20 Numbers_28%20Jan.pdf (6) EU-SILC (2013) European Union Statistics on Income and Living Conditions. (7) http://www.euro.who.int/en/health-topics/noncommunicable-diseases/obesity/data- (3) http://www.who.int/gho/child_health/mortality/mortality_under_five/en/ and-statistics 35 CARING for the PLANET Because We Care CONTENTS Environmental challenges Sustainability in action: Amway’s role • • • • • • Conserving water at Amway Making our energy greener and more efficient Greening our meetings via remote working Making our packaging more sustainable across the supply chain Farming sustainably: Amway leadership Greening our warehouses in Europe We only have one planet. And that means we all have a responsibility to care for the environment and use our resources wisely. Amway’s founders, Rich DeVos and Jay Van Andel, understood the importance of sustainability as early as 1959 when our business began. Already our very first product, Liquid Organic Cleaner, was friendly to the environment. We also included some of the first sustainable farming practices in our supply chain. Today, Amway is still exploring new and innovative ways to reduce our impact on the planet. WHAT IS SUSTAINABLE DEVELOPMENT? Our Common Future, also known as the Brundtland Report(1), was published by the United Nations World Commission on Environment and Development (WCED) in 1987. It defines sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs… In essence, sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development; and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations.” Amway aims in applying that vision of sustainable development and corporate responsibility to everything that we do. 40 ENVIRONMENTAL CHALLENGES Water is the lifeblood of our world. We need water for drinking, nourishing our crops, and providing sanitation. And yet globally, some 780 million people lack access to clean water(2). What’s more, almost 2.5 billion people have no access to adequate sanitation(3). And the challenges are set to increase. The United Nations expects water availability to decrease in many parts of the world, even as more water is needed for agriculture to feed the world’s growing population. Cutting water waste is therefore a key priority for the world. Our focus on water obviously ties in with one of the main uses thereof – agriculture. Food production is more essential than ever as the world’s population continues to grow. Our planet is set to reach 9.2 billion inhabitants by 2050 – yet half of the habitable land on Earth is already used for farming, and the margin for growth is limited(4). We must therefore farm more sustainably. 70% of the world’s surface water supplies are used for farming(5) – if we are to produce more food, we must learn how to use these resources more sustainably, using efficient water management techniques and sustainable practices. Poor management such as overuse of fertilisers and pesticides can lead to soil pollution, salinization and loss of arable land. Loss of biodiversity can also have a major impact on ecosystems as a whole. Water shortages are exacerbated by climate change, which is one of the major threats to our continued livelihoods. Global greenhouse gas emissions are higher today than for the last 800,000 years and are still growing(6). These emissions reached a record high in 2014, with 44 billion tonnes of CO2 alone being produced from human activities(7). Climate change not only leads to melting ice and rising seas – it also brings with it heavy rain, extreme weather events and flooding in some regions while other parts of the world will experience increased desertification and drought(8). Reducing our environmental impact is good for our business and good for the planet. We are working hard to lessen our energy use and improve our efficiency – by which we mean doing more with less, which cuts costs and also has a positive impact on climate change. This is combined with our goal to reduce outputs across the business, so reducing the production of CO2 by e.g. transportation or lessening the amount of waste we put back into the environment. The average European uses 16 tonnes of materials per year, of which 6 tonnes become waste – for a total waste production in the EU in 2010 of 2.5 billion tons, only 36% of which is recycled(9). Increasing recycling and reducing resources is not only good for the environment – it also makes economic sense, especially when it comes to lowering our consumption of precious and often costly raw materials. On this, we are making first progress, but we realise that we still can do more. 41 SUSTAINABILITY IN ACTION: AMWAY’S ROLE We can all do more to make the way we do business smarter and more sustainable – from the way we construct and maintain our buildings (offices, warehouses and factories) to the use of more sustainable methods in our energy consumption and agricultural methods. It means doing more with less – fewer and more intelligent inputs, lowering consumption of resources, and growing efficiency in food production(10). While Amway has always focused on environmental responsibility, we know we need to keep innovating and doing better. That means taking action every year. We have focused our sustainability efforts on two key areas. First of all, we aim to reduce waste resulting from production and processing. This includes conserving water and energy, reducing greenhouse gas emissions, and using smarter materials in products and packaging. Secondly, we are aiming for sustainability innovations in business practices and operations, including the development of sustainable building practices, and increasing the use of alternative energy use and sustainable agriculture. REFERENCES (1) http://www.un-documents.net/our-common-future.pdf (2) http://www.unwater.org/water-cooperation-2013/water-cooperation/facts-and-figures/en/ (3) http://www.unwater.org/water-cooperation-2013/water-cooperation/facts-and-figures/en/ (4) http://www.saiplatform.org/uploads/Library/short_guide_to_sa_-_final[1].pdf (5) Clay, J. (2004) World Agriculture and the Environment: A Commodity-by-Commodity Guide to Impacts and Practices Island Press (6) http://www.epa.gov/climatechange/ghgemissions/global.html (7) http://www.livescience.com/47929-global-carbon-emissions-2014-record.html (8) http://ec.europa.eu/clima/change/consequences/index_en.htm (9) http://ec.europa.eu/environment/waste/ (10) http://www.euractiv.com/cap/climate-change-food-security-wor-analysis-533530 42 GREENING OUR MEETINGS VIA REMOTE WORKING Part of our policy for reducing travel that is not business essential, we have implemented employee travel guidance. This includes facilitating remote meetings where possible, using teleconferences, videoconferences, webinars and other tools. Under the guidance, business trips may be planned only if a teleconference or video conference is not possible. Since 2012 we have reduced our carbon emissions from flights in Europe by 14 per cent. MAKING OUR PACKAGING MORE SUSTAINABLE ACROSS THE SUPPLY CHAIN Our rebranded SATINIQUE Collection of hair products is one of our best examples of how packaging can be made with the environment in mind – it made its most recent global debut with new packaging that’s more sustainable than ever, and even won a sustainability award in the United States. The new 280 mL and 750 mL custom bottles and closure material reduction, sustainable alternative or recycled materials, and packaging efficiency. More sustainable MiraFoil inks were implemented instead of a traditional hot stamp for the new SATINIQUE icon. These inks can be applied to precise areas, and drastically reduce waste. Low-profile, smalldiametre neck finishes were specified in bottles to reduce resin use in custom bottles. We understand that packaging is one of the biggest single factors in our ecological footprint. We also recognise that packaging can be more environmentally-friendly – and we are working to make this a reality. The boxes we use to transport goods in Europe are made with up to 60 per cent recycled material – and 100 per cent for the inner cardboard dividers. This recycled packaging is itself recyclable or re-usable. MAKING OUR ENERGY GREENER AND MORE EFFICIENT Electricity from wind farms is renewable, sustainable and green. Amway recently committed to doubling the amount of nongrid wind power compared to our initial purchasing commitment in 2009. Today, we’re on track to exceed our goal of 15% renewable wind power globally by early 2015. This is coupled with actions for greater energy efficiency. From 2014 to 2020, we aim to cut energy use by 10%, starting in all US facilities. In our World Headquarters, we’ve switched from traditional lighting to LED bulbs, which provide brighter light and uses less electricity. Each of the LED bulbs uses 25-50% less electricity than the metal halide bulbs they are replacing. CONSERVING WATER AT AMWAY Water is integral to our manufacturing processes – and at Amway, we’re continually re-evaluating how we use and re-use it. We also use water to generate steam to power our machines at all of our Alticor owned manufacturing facilities around the world, to cool them off so they don’t overheat. Knowing how important water conservation is, we have committed to reduce water use across the global business by 10% between 2014 and 2020. And we’ve already started taking action. At our facilities in Guangzhou, China, steam condensation and waste water generated from machines used to be discharged directly into waste drains. Following a re-fitting, that same water is now filtered and sterilised and then diverted to gardens and toilets. Here in Europe, we have continued to monitor our water consumption across various affiliates in 2014. On average, we consumed 17.4m3 of water per person in 2014, down from 20.4m3 in 2013. FARMING SUSTAINABLY: AMWAY LEADERSHIP GREENING OUR WAREHOUSES IN EUROPE Amway’s commitment to environmental stewardship also extends to how we farm the ingredients in our products. For over ten years, Amway has been working with farming communities to promote sustainability across the supply chain. Our NUTRICERT Farm Certification Program focuses on strict quality control from seed to finished product. This means monitoring the land, irrigation water, soil status, harvesting crews, field sanitation, handling practices, environmental concerns and more. That is because we understand that farming is about more than just producing crops. It involves complex cultural practices, land preparation and sustainable farm management. Logistics must be part of our sustainability strategy. Across Europe, Amway has worked to reduce the impact of our warehouse and logistical operations on the environment. In Poland, we cooperate with a local recycling partner, use recyclable shipping materials, and re-use pallets and shipping bags. In Ukraine, we have an agreement with a local supplier to provide paper for recycling in exchange for a discount on boxes. Our work to reduce waste is also visible in our warehouse in Turkey, where we use recycled paper as dunnage material and compact press to reduce the space taken up by waste cartons – in Venlo, the Netherlands, we have also increased the fill rate of some shipping boxes, meaning 5% fewer cartons and up to 10% reduction in dunnage. In Greece, also, we are using increasing amounts of recycled materials for our boxes. We grow, harvest and process plants on its own sustainably managed farms for our NUTRILITE brand supplements. These farms use natural processes to improve soil health and plant nutrition, while also avoiding pesticides by using natural enemies such as ladybirds to protect our crops from pests. Soil is a living organism, and managing it is essential if we are to achieve genuine sustainable farming practices. Every NUTRILITE farm undergoes a programme of continually enhancing the soil with cover crops, green manure crops, composts and other naturally-mined materials needed for plants to grow. 43 Alongside this, we’ve also made our facilities greener by using more environmentally friendly lighting in our warehouses in Turkey and Greece. And at our warehouse in Venlo, in the Netherlands, we’re saving energy by switching off 1 out of 4 loops, making order processing more economical. All of this is contributing to lessening our global ecological footprint. BUILDING A SUSTAINABLE BUSINESS Because We Care CONTENTS BUILDING A SUSTAINABLE BUSINESS Corporate Responsibility at Amway in Europe • • • • • • Why Corporate Responsibility matters Listening to our stakeholders Our belief in social investment Management of Corporate Responsibility at Amway in Europe Responsible business practice Reporting under the GRI framework The Amway Business in Europe • • • • Operations in 29 countries Amway operations in Europe Building a sustainable 10,8 billion dollar business Over 450 nutrition, beauty and household products PEOPLE Amway’s Employees • • • • Supporting our 1,398 employees Opportunities for all Amway University Amway College Our Distributors • • • A diverse community of over 250,000 distributors Amway training Amway Business Centers – another key support tool One by One Campaign for Children • • The Amway Volunteering Day Over 630,000 US dollars donated to community projects in Europe and South Africa PERFORMANCE Smart Resources Programme • Smart ways to cut costs and tackle climate change • Energy in our buildings • Business travel and transport •Water • Packaging, waste and recycling Environmental management • • • • Environmental health and safety in the supply chain Life Cycle Analysis: Minimising environmental impacts Sustainable farming Improving environmental management BUILDING A SUSTAINABLE BUSINESS CORPORATE RESPONSIBILITY AT AMWAY IN EUROPE WHY CORPORATE RESPONSIBILITY MATTERS Corporate Responsibility (CR) is integral to the way we do business at Amway. We believe we have an ethical responsibility to create long-term benefits to society, with a commitment to putting our people, products, and performance at the heart of everything we do. In recognition of our CR efforts, in 2014 our Amway headquarters in Europe received the ‘Fair Company’ award from careers website Karriere. The award highlighted the care the company takes over job starters. Meanwhile, Amway Ukraine’s ‘Holistic Approach for Entrepreneurship Education’ scheme was acknowledged as one of the top 5 best practices by the Ukraine Centre for CSR Development. LISTENING TO OUR STAKEHOLDERS Stakeholder consultation is an important part of Amway’s sustainability activities. Our key stakeholders include the consumers of our products, employees, distributors, key national and EU level decision-makers and the wider community. Among the ways we have consulted decisionmakers is by holding thematic events. In 2014, we continued to hold a range of events at EU and national level around the topic of entrepreneurship, aimed at stimulating the debate on new business formation in Europe. By consulting these stakeholders we ensure that our sustainability strategy keeps pace with the expectations of wider society. As part of our commitment to stakeholder engagement, we conduct regular Corporate Responsibility consultations. In 2013, Amway commissioned an independent CR survey among its employees and distributors across Europe, aimed at measuring their familiarity with Amway’s values, internal policies, and activities, in addition to collecting input from them on other important issues, such as on their development within the company. Around 3,000 employees and distributors took part in the survey with over 9 out of 10 respondents saying that Amway is supportive of their professional and personal development. Our next CR survey will take place in 2015. OUR BELIEF IN SOCIAL INVESTMENT Our investments to improve society also extend beyond our business opportunity for individuals. At Amway, we believe by using the best of our business and the passion of our people, we can solve global challenges and improve communities all over the world. • We use our expertise in nutrition to improve the nutritional health of children around the world. • We support and recognize the commitment of individuals One by One supporting their communities, through volunteering. Together, we are helping people live better lives. These global trends along with the insights from our reputation tracking efforts across Amway affiliates indicate the important role corporate social responsibility should play to help demonstrate Amway’s positive influence on society. CSR is 1 of 6 attributes to Amway reputation according to RepTrak research, including 3 specific indicators: 1 Amway has a positive impact on society; 2 Amway Supports good causes; and 3 Amway protects the environment. 48 To achieve this goal, we are committed to delivering long-term value and creating opportunities in the communities where we operate. All of our activities are centred on providing support to our communities through our three Corporate Responsibility pillars – People, Products and Performance. Products. We are also aware that the expertise developed through our products can make a real difference in improving the lives of people and communities. One example is NUTRILITE Little Bits – a product used to treat chronic malnutrition in children under the age of five. Little Bits is a food supplement containing essential vitamins and minerals – nutrients that are often missing in children’s diets. We work in collaboration with CARE and the Global Alliance for Improved Nutrition (GAIN) to help improve the lives of children. People. Realising our Corporate Responsibility ambitions would not be possible without our diligent employees and distributors – the people that help keep our business ethical while ensuring we continue to grow. As such, we know that maximising each individual’s potential is an important aspect to the success of our business. At Amway, we also believe in promoting entrepreneurship as a way to create jobs, improve economic conditions across Europe, all while providing individual empowerment and independence for those that decide to go down the path of self-employment. As a family business built on such according values, through our One by One Campaign for Children, Amway employees and distributors take pride in being able to make a difference in the lives of children and families since 2003. Performance. Sustainability is a cornerstone for our company and our performance is essential to the way we are perceived as a company. We continually strive to meet best practice in sustainable management, production and distribution and we are firmly committed to reducing our environmental footprint while promoting sustainability in our people and communities, both at work and at home. AMWAY IN EUROPE’S CORPORATE RESPONSIBILITY AS A FUNDAMENTAL PILLAR OF THE BUSINESS Amway brand Help people live better lives Create change with a caring touch Family of Brands Business Opportunity People MANAGEMENT OF CORPORATE RESPONSIBILITY AT AMWAY IN EUROPE Relationships Corporate Responsibility Products Performance The revised Code of Conduct of Seldia, the European Direct Selling Association, includes an Ethics Committee that acts as an Ombudsman, tasked with receiving and addressing complaints submitted from parties in a variety of cases. As a corporate member of Seldia and as a member of several national DSAs, Amway is subject to the decisions taken by the Ombudsman. The foundation for an ethical business is a sound governance structure. At Amway, Corporate Responsibility is overseen by the Vice President for Corporate Affairs, who operates within the European Executive Team and is reported to directly by the CR Manager for Europe. Ensuring transparent and direct lines of accountability is central to the Amway business model in Europe and is how we maintain proper Corporate Responsibility. Upholding our high ethical standards and our reputation as a responsible business that people can really trust is a priority for us. We aim to provide clear channels for handling complaints and addressing contractual disputes that are fair, transparent, applied in a consistent manner, and provide a strong level of protection for consumers and distributors. In 2014, 99.8 per cent of our distributors at Amway in Europe received no substantiated complaints in terms of keeping within the rules and contractual obligations . Of the remaining 0.02 per cent, action was taken by Amway commensurate with the individual cases involved. We endeavour to integrate CR management fully into each of our individual offices across Europe. We also strive to ensure a consistent approach to Corporate Responsibility across Amway in Europe through our wider programme of information and training. RESPONSIBLE BUSINESS PRACTICE Ensuring responsibility in our supply chain is also important for us. The Supplier Code of Ethics of the Access Business Group, which is part of Amway’s parent company Alticor and the logistics partner to all Amway markets across the world, is binding for all suppliers and their subcontractors when entering into a contractual agreement with Amway. The Code features guidelines on fair remuneration, working hours, age requirements, work and health standards and equal opportunity. Access Business Group inspectors must also be granted access to suppliers’ production sites at all times. The success of our business is contingent on the level of trust and confidence that consumers have in our products and distributors. In addition to our compliance with EU and national consumer protection legislation, we are a leader in establishing Codes of Conduct and increasing the level of protection for consumers and distributors. In addition to Amway’s own Codes of Conduct, we are also committed to the consumer Codes of Practice set out by the World Federation of Direct Selling Associations (WFDSA) and national DSAs across Europe. DSA Codes of Conduct address the obligations of DSA members to direct sellers (such as Amway’s obligations to Amway distributors) as well as DSA members’ obligations to consumers. We incorporate DSA requirements into our contracts with distributors. Our employees must record and report business information truthfully, and maintain accurate books and records. Our legal and technical regulatory staff coordinate with our local affiliates and government officials from around the world to ensure that all laws and regulations are strictly adhered to. We are fully compliant with local anti-corruption laws, including the US Foreign Corrupt Practices Act. 49 CORPORATE RESPONSIBILITY MANAGEMENT STRUCTURE AT AMWAY IN EUROPE EUROPE Managing Director Europe Director Marketing Europe Director European Affiliates Director Sales Support Europe VP Corporate Affairs Europe CSR Europe REPORTING UNDER THE GRI FRAMEWORK Corporate Responsibility is not only about taking action – it is also about reporting on our actions year on year. In this way, we can communicate our progress to stakeholders. In 2010, as part of our continuing process of strengthening Corporate Responsibility, we committed to moving towards the reporting framework under the internationally recognised Global Reporting Initiative (GRI). In 2012, we published an expanded range of performance indicators, providing a benchmark for future years. The 2014 Corporate Responsibility Report continues our commitment to GRI reporting by setting out our GRI Index with a range of economic, social and environmental performance indicators under GRI’s G3 guidelines. This report is aimed to provide helpful information to a range of stakeholders, including customers, distributors, employees, European policy makers and civil society. The report covers the 2014 calendar year, from 1 January to 31 December. This fulfils our commitment to undertake full annual reporting from 2012 onwards. The materiality and prioritisation of topics covered in Amway in Europe’s 2014 Corporate Responsibility Report were based on previous reporting together with discussion and consultation with a variety of stakeholders. Sources used for this process included (among others): Amway’s global and European Corporate Responsibility strategies; internal and published documents on the company’s objectives and policies; guidelines of the World Federation of Direct Selling Associations and the European Direct Selling Association; employee surveys; feedback, insights and surveys of distributors and customers; discussions with EU policy makers and not-for-profit social organisations; and European Commission communications on Corporate Social Responsibility policy. 50 Director Market Development CFO Europe Head of HR Europe THE AMWAY BUSINESS IN EUROPE OPERATIONS IN 29 COUNTRIES BUILDING A SUSTAINABLE 10.8 BILLION DOLLAR BUSINESS Amway in Europe is currently active in 29 markets across Europe. The headquarters are located in Puchheim near Munich, Germany, where around 290 people are employed. Where possible, the scope of this report covers all Amway operations that were active in Europe up to 31 December 2014. Global revenues of Amway’s parent company, Alticor Inc., were 10.8 billion dollars in 2014, making us one of the largest direct selling groups in the world. That success has been built on long term growth since 1959. The Amway business has grown in 13 of the last 15 years despite the global downturn during the last decade. In 2014, regional restructuring led to the transfer of operations from some of Amway in Europe’s smaller offices to regional hubs. As a result, offices in Croatia, France , Netherlands, Norway, Portugal, Slovakia, Slovenia and Switzerland were closed or main functions re-allocated. The Amway offices in the Czech Republic, Denmark, Germany, Hungary, Poland, Romania and Spain took over these functions and therefore the number of staff at most of these locations has grown. We also started operations in Bulgaria, whose operations will be led by the General Manager Romania and Bulgaria. OVER 450 NUTRITION, BEAUTY AND HOUSEHOLD PRODUCTS At Amway, and its parent group Alticor, we manufacture and sell over 450 products including nutrition and wellness, beauty and household products. The majority of products sold in Europe by product volume in 2014 were Amway’s nutrition products, contributing 30 per cent of sales. In 2014, Amway opened a total of four new physical presences. These were new Business Centers in Rome, Lyon and Madrid, along with a new Plaza in Ankara, Turkey. By 31 December 2014, we had 16 offices, 4 warehouses and distribution centres, and 18 Experience Centers and Promotional Centers (including Business Centers and Plazas). Our main European logistics centre remains in Venlo, in the Netherlands. Sales of Amway products in 2014: Europe The Access Business Group (ABG) belongs to the Alticor Group, Amway’s parent company. ABG is a team of vertically integrated business-to-business experts. ABG provides product development, sourcing, manufacturing, printing, packaging, and distribution, with expertise in nutrition, personal care, home care, and beauty. 10% 4% 15% Beauty Nutrition Personal care 17% Home care AMWAY OPERATIONS IN EUROPE 30% 24% Durables Other NUTRILITE is the world’s number one selling vitamins and dietary (1) supplements brand . Our exclusive NUTRICERT programme ensures that best practices in sustainable farming are delivered throughout the world. All plant concentrates grown on Amway farms, NUTRICERT farms or purchased from other farms must meet strict quality standards including: • • • • • Crop and vegetation diversity Healthy soil-building practices No soil or environmental contamination In-depth quality control standards Building a healthy social environment around the farm In beauty, ARTISTRY is among the world’s top five largest selling premium skincare brands(2), while in homecare we provide environmentally sensitive products. Selling good quality and good value products is important to us, which is why we include a satisfaction guarantee on most of our product range. 51 PEOPLE AMWAY’S EMPLOYEES SUPPORTING OUR 1,398 EMPLOYEES OPPORTUNITIES FOR ALL In 2014 Amway in Europe employed 1,398 people. Our skilled and dedicated employees are the backbone of our operations and the key to our continued success. As a result, we understand the importance of motivating our people and providing them with the support they need to excel in all areas of their working lives. At Amway in Europe, having a diverse employee base provides us with many benefits. Each employee is integral to the bigger picture, and brings with them their own unique ideas and perspectives that help our business flourish. On that basis, we aim to ensure that all our employees are treated equally and have the same opportunities, regardless of their age, gender, race or religion. We endeavour to reward every single employee, no matter where they are situated or what function they serve within the organisation, and to that end in 2014 we continued to provide our employees with specialised training courses through the Amway Business School, Amway College and Amway University – offering participants the opportunity to increase their skill sets, including their managerial and leadership skills. Amway in Europe employs people from over 40 different nationalities, and 65 per cent of our employees are female. We believe in fair remuneration and the principle that equal work necessitates equal pay. Given the ongoing economic crisis, many youth and people over 50 are finding it particularly difficult to find work. With that in mind, at Amway we strive to maximise the potential of these important age groups, and we endeavour to ensure that people of all ages are well represented in our diverse work force – 28 per cent of our employees are under the age of 30, and 11 per cent are over 50. We also offer our employees comprehensive benefits including retirement provision, special leave, travel health insurance, and language lessons. All Amway employees in Europe, regardless of whether they work full or part-time, receive the same coverage under our benefit plans. We also take discrimination very seriously at Amway in Europe. Regrettably, we recorded one incident of discrimination in 2014, and a reprimand was imposed. The physical well-being of our employees is very important to us. Every affiliate within our network is obliged to follow local health and safety standards. In 2014, 10 accidents were recorded in 2 countries – 4 accidents travelling to/from work in Germany and 6 accidents in Poland of which 4 were travelling to/from work or on business trips and 2 in the office. We carefully monitor the accident rate, where they occur and the circumstances to minimise the chances of similar events occurring in the future. Age of employees at Amway Europe Gender of employees at Amway Europe 12% Women 65% Men 35% 8% 18 - 25 20% 24% 26 - 30 31 - 40 41 - 50 36% Over 50 AMWAY UNIVERSITY In 2014, we launched the Amway University - a global platform available to all Amway employees, anytime and anywhere. It will allow employees to shape their personal development not only in line with the needs of the business, but also based on personal interests and as a way to contribute to the growth, development and performance of other people. It will also allow employees to exchange expertise and learn from colleagues by posting questions, sharing videos and beginning discussions, as well as collaborate across units, functions and geographies. In addition to the daily sharing and learning at Amway University, employees can explore three areas to support their career goals: • • • The Leadership Academy: where current leaders, future leaders and those who aspire to become leaders can go to learn and develop skills. Professional Development: a destination for all employees to build on the skills that align with Amway’s global competencies. This provides career planning tools and resource guides to support the creation of development plans. Functional Schools: an opportunity for a function or division to drive the development of their own employees. Amway University now hosts the Learning Management System of the Amway Business School in Europe. In 2014, 592 employees in Europe improved their skills, attending 1,241 Learning Management System online courses. Currently, the Amway University platform is provided in English to global employees, including those in Europe. The aim is to launch additional languages in 201 52 AMWAY COLLEGE Our regional initiatives – such as Amway College - will continue to be offered in situations where it is beneficial. The Amway College is an exclusive formula of modular classroom training, entirely conceived to support Amway’s Managers and talents. Areas covered include situational leadership, project management, change management, and being on stage (among many others). Under the Amway College, a new Sales College was launched in 2014. The aim of the Sales College is to support the implementation of the Key Account Manager (KAM) approach in Europe. The approach has been designed around the development needs identified in our European Sales organisation. The programme will be completed in early 2015 by offering the training to all European affiliates that will implement the KAM concept to support all European distributors in all markets. OUR DISTRIBUTORS A DIVERSE COMMUNITY OF OVER 250,000 DISTRIBUTORS Diversity is a cornerstone of Amway’s identity. We are proud that our Amway in Europe distributors come from all corners of Europe, bringing with them their own unique talents and skills. A microcosm of Europe our distributors come from all walks of life, gathering talented individuals from different backgrounds, cultures and nationalities. Women are particularly well represented within our distributor family. Women entrepreneurs make up 55 per cent of our total distributors in Europe, and we aim to ensure that our distributors come from a variety of age groups, from 18 to over 70 years old. This means that our business model offers opportunities to young people – 20 per cent of our distributors in Europe are under 30 years of age. Meanwhile, we also recognise the important role that people over 50 play in today’s labour market. 27 per cent of our European distributors are 50 or over. Gender of distributors: Europe 26% Woman 55% Man Other* 19% *e.g. couples / mother and daughter teams Age of distributors: Europe 9% 20% 18% below 30 30 - 39 40 - 49 28% 25% 50 - 59 60 and above 53 54 AMWAY TRAINING Amway’s distributors are excellent ambassadors, both for our products and for our company as a whole. Our business relies on talented individuals, and at Amway we fully believe in maximising the potential of our distributors as a way of maintaining our continued success. The Amway Academy was created to help our distributors and offers a comprehensive system of professional education, consisting of e-learning courses, web presentations, certification programmes, classroom training and personal training courses, each highly personalised and adapted to each individual’s needs. Training Number of learning units Instructor led 380,604 E-Learning 193,709 Academy certified distributors (high impact training sessions) 1,000 AMWAY BUSINESS CENTERS – ANOTHER KEY SUPPORT TOOL Starting in 2013, Amway has been rolling out new centres across Europe to support distributors. The centres provide modern premises that enable distributors to conduct a range of activities, from carrying out business meetings to participation in training. The first new opening was the Amway Business Center in Berlin. This was followed in 2014 with new premises in Rome, Lyon, Madrid and Ankara. The centres provide distributors with the opportunity to sell or recommend and showcase their products. Amway products are also on offer to try out for free. Employees are always available to provide help and answer any questions in multiple languages – a testament to Amway’s diversity and multiculturalism. ONE BY ONE CAMPAIGN FOR CHILDREN Amway Europe donations to One by One projects THE AMWAY VOLUNTEERING DAY To celebrate UN International Volunteering Day on December 5th 2014, Amway organised volunteering activities across Europe and Southern Africa. Amway employees and distributors supported local initiatives that focus on child nutrition and well-being. Distributors & employees $ 303,960 In all, 825 volunteers from 26 different countries participated in very diverse projects, all focussing on health and well-being of children. Company $ 332,560 OVER 630,000 US DOLLARS DONATED TO COMMUNITY PROJECTS IN EUROPE AND SOUTH AFRICA Throughout the year, as part of the One by One Campaign, Amway in Europe contributed over 630,000 US dollars to 78 charitable projects across Europe in 2014. Overall, 53 per cent of the projects we supported were health-related, and another 19 per cent were linked to education. Our employees and distributors volunteered nearly 33,649 hours of their time and impacted over 17,000 children across Europe. Our largest beneficiary continues to be Unicef. Amway Europe One by One projects General 28.2% As part of this we also raised 100,000 US dollars to support the Tutudesk Campaign – an initiative named after the patron Archbishop Desmond Tutu – which provided more than 5,000 portable lap desks (or ‘Tutudesks’) to school children in South Africa without proper writing surfaces. This follows a similar amount raised in 2013, resulting in 15,000 desks over the last two years. The Tutudesk initiative aims to provide lap desks to 20 million children by 2020 and Amway is a strong partner in these efforts. Education 19.2% 55 Health 52.6% PERFORMANCE SMART RESOURCES PROGRAMME Sources of carbon emissions across Amway European operations SMART WAYS TO CUT COSTS AND TACKLE CLIMATE CHANGE At Amway, successfully managing the environmental impact of our global operations is the most important guiding principle on our path to sustainability. We firmly believe that reducing our environmental footprint is a prerequisite to conduct our business in the best possible way. Flights 57% Buildings 36% Although at Amway in Europe we mainly distribute products, we nonetheless remain committed to minimising our environmental footprint in Europe and reporting on our progress. In 2014, our carbon footprint was broadly similar to 2013. Overall, we made a slight saving of 165 tonnes of CO2 - a carbon saving of 0.12 tonnes for every employee at Amway in Europe. Flights remain the largest contributor of greenhouse gases, representing 57 per cent of the total. Buildings represent 36 per cent of our emissions, with our vehicle fleet contributing seven per cent. We will continue to monitor our performance in all areas under Amway in Europe’s Smart Resources Programme, including our gas and electricity consumption, vehicle fuel consumption, flights, water use, packaging and greenhouse gas emissions. ENERGY IN OUR BUILDINGS Vehicles 7% Reducing Amway’s carbon footprint in Europe BUSINESS TRAVEL AND TRANSPORT 8,000 7,000 5,000 55% 4,000 3,000 1,000 Buildings The millions of products we distribute each year across Europe need to be packaged for protection during transit and storage. Packaging is essential to ensuring that our consumer goods are well protected, safe to use and carry clear information on their labels. It is Amway’s constant endeavour to lessen our environmental footprint. Our transport boxes are produced with at least 60 per cent recycled material, and 100 per cent of our inner cardboard dividers are made of recycled material. This packaging can either be re-used where possible, or alternatively it is recycled. Our rebranded SATINIQUE Collection of hair products is one of our best examples: it made its most recent global debut with new packaging that is more sustainable than ever, and even won a sustainability award in the United States. The new 280 mL and 750 mL custom bottles and closure material reduction, sustainable alternative materials, use of recycled content, and packaging efficiency. More sustainable inks were implemented instead of a traditional hot stamp for the new SATINIQUE icon. These inks can be applied to precise areas, and drastically reduce waste. Low-profile, small-diameter neck finishes were specified in bottles to reduce resin use in custom bottles. 56 Flights Total 6,000 5,087 Tonnes of CO2 4,589 4,370 4,000 3,000 19% 2,000 1,000 PACKAGING, WASTE AND RECYCLING Vehicles Flight emissions across Amway Europe 26% Water is a valuable resource we use across our business at Amway. We have continued to monitor our water consumption across various affiliates in 2014. On average, we consumed 17.4m3 of water per person in 2014, down from 20.4m3 in 2014. Once again our Warsaw affiliate was the most water efficient – using just 4.1m3 per person. 2014 19% 5,000 WATER 2013 2,000 As part of our policy for reducing travel that is not business essential, we have implemented employee travel guidance. This includes facilitating remote meetings where possible, using teleconferences, videoconferences, webinars and other tools. Under the guidance, business trips may be planned only if a teleconference or video conference is not possible. At Amway, we have a target to cut carbon emissions from flights by 15 per cent by 2015. In 2014, employees covered 13,147,121 kilometres in air travel, producing 4,369 tonnes of carbon emissions. This compares with 13,859,895 kilometres of flights in 2013 that produced 4,589 tonnes of carbon emissions. This continues a trend of reduced emissions from flights since 2012, with a carbon saving of around 14 per cent over the last two years. 26% 6,000 Tonnes of CO2 Energy consumption in our offices and other buildings is one of the main sources of carbon emissions at Amway in Europe. Although the carbon footprint of offices is relatively low, there is still some room for improvement. In 2014, we consumed over 4000 MWh of electricity and over 2500 MWh of gas for heating across our European operations. This represents 2699 tonnes of carbon emissions – or 2.15 tonnes per employee. In 2013, our buildings produced 2579 tonnes of carbon emissions – or 2.2 tonnes per employee. 0 55% 2012 2013 2014 ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL HEALTH AND SAFETY IN THE SUPPLY CHAIN At Amway, we believe that the sustainable use and management of the world’s resources are the responsibility and role of individuals and industry alike in promoting environmental stewardship and protecting the workplace health and safety of all persons working for, or on behalf of, Amway and the communities where we operate. LIFE CYCLE ANALYSIS: MINIMISING ENVIRONMENTAL IMPACTS Life cycle analysis is part of the company’s efforts to minimise the environmental impact of products and processes. This supports the company’s sustainability strategy: develop new, innovative, profitable and sustainable products and improve the sustainability of existing products, while balancing consumer needs and cost. The benefits of life cycle analysis include, among others: • Effective identification and prioritization of environmental performance improvements during the design phase • More informed R&D decision-making • Creation of more relevant indicators of product environmental impact and performance • Ability to validate environmental performance claims • Expanded environmental and sustainability awareness throughout the company SUSTAINABLE FARMING As well as our commitment to more sustainable production processes, Amway continues to use sustainable farming practices developed over many years. Our NUTRILITE brand - mineral, vitamin, and dietary supplements – has taken the concrete step of growing, harvesting and processing plants on its own sustainably managed farms. These farms use natural processes to improve soil health and plant nutrition, while also avoiding pesticides by using natural enemies such as ladybirds to protect our crops from pests. We recognise that farming is about more than just producing crops. It involves complex cultural practices, land preparation and sustainable farm management. As we all know, soil is a living organism, and managing it is essential if we are to achieve genuine sustainable farming practices. Every NUTRILITE farm undergoes a programme of continually enhancing the soil with cover crops, green manure crops, composts and other naturally-mined materials needed for plants to grow. IMPROVING ENVIRONMENTAL MANAGEMENT Amway in Europe has committed to improving our environmental management systems year on year. In 2012, we moved to a more overarching management system under the Global Reporting Initiative (GRI). Once again, in this Corporate Responsibility Report, we are publishing a range of environmental performance indicators as part of the GRI index. REFERENCES (1) Methodology Explanation: “Source Euromonitor International Limited; Vitamins and Dietary Supplements, World, GBN, Retail Value RSP, % breakdown, 2013.” (2) Methodology Explanation: “Source Euromonitor International Limited; Beauty and Personal Care 2014, Premium Beauty and Personal Care and Premium Skin Care category and subcategory; global 2013 value RSP.” (3) These figures are calculated from the data available for buildings in 16 countries. Of the 29 countries where Amway has operations, Bulgaria, Estonia, Ireland, Latvia and Lithuania do not have permanent offices. In 2014, Amway relocated administrative operations in Croatia, France, The Netherlands, Norway, Portugal, Slovakia, Slovenia and Switzerland and thus there is no building emissions data for these countries. (4) Emissions per employee are calculated on the basis of employee numbers on 31 December 2014, corresponding to the end of the calendar year 2014. 57 ANNEXES ANNEX I: GRI INDEX GRI reference Description Type Report section Core Foreword from the Managing Director Strategy and analysis 1.1 Statement from the Managing Director Organisational Profile 2.1 Name of the organisation Core Building a Sustainable Business 2.2 Primary brands, products and/or services Core Building a Sustainable Business 2.3 Operational structure of the organisation Core Building a Sustainable Business 2.4 Location of organisation’s headquarters Core Building a Sustainable Business 2.5 Number of countries where the organisation operates Core Building a Sustainable Business 2.6 Nature of ownership and legal form Core Building a Sustainable Business 2.7 Markets served by the organisation Core Building a Sustainable Business 2.8 Scale of the reporting organisation Core N/R 2.9 Significant changes during the reporting period Core Building a Sustainable Business 2.10 Awards received in the reporting period Core Building a Sustainable Business Report Parameters 3.1 Reporting period Core Building a Sustainable Business 3.2 Date of most recent previous report Core Building a Sustainable Business 3.3 Reporting cycle Core Building a Sustainable Business 3.4 Contact point for questions Core Contact section 3.5 Process for defining report content Core Building a Sustainable Business 3.6 Boundary of the report Core Building a Sustainable Business 3.7 Any specific limitations on the scope or boundary of the report Core Building a Sustainable Business 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities Core Building a Sustainable Business 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement Core N/A 3.11 Significant changes from previous reporting periods Core Building a Sustainable Business Governance, Commitments and Engagement 4.1 Governance structure of the organisation Core Building a Sustainable Business 4.2 Indicate whether the Chair of the highest governance body is also an executive officer Core Building a Sustainable Business 4.3 State the number of members of the highest governance body who are independent and/or non-executive members Core None - family business 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body Core People 4.14 List of stakeholder groups engaged by the organisation Core Listening to our stakeholders 4.15 Basis for identification and selection of stakeholders with whom to engage Core Listening to our stakeholders ANNEX II: 2014 PERFORMANCE INDICATORS Description GRI code Units Figure or report section US dollars 10.8 billion Coverage of the organisation’s defined benefit plan obligations EC3 % 100 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation EC5 Qualitative Amway has the same entry level wages for male and female employees. Amway always pays above the local minimum. Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation EC7 Qualitative Amway’s aim is to fill vacancies by a split of 70% internal and 30% external. The external number includes hire from local communities as well as international communities. Economic Annual turnover (global) Social Employment and distributor numbers Number of employees in Europe (31/12/2013) Number 1,323 Number of employees in Europe (31/12/2014) Number 1,398 Number of distributors in Europe Number >250,000 HR4 Number 1 case. A penalty of reprimand was imposed LA3 Qualitative The same benefits are provided to full-time and parttime employees Human rights Total number of incidents of discrimination and corrective actions taken Labour practices and decent work Benefits provided to full-time employees that are not provided to temporary or part-time employees by significant locations of operation 58 Minimum notice period(s) regarding operational changes including whether it is specified in collective agreements LA5 Qualitative Based on statutory law in all countries Rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities by region and by gender LA7 Number 2 work accidents, 8 accidents on way to/from work (4 accidents, male, Germany; 6 accidents, 4 female, 2 male, Poland) Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings LA11 Qualitative Amway’s Employees Our Distributors Percentage of employees receiving regular performance and career development reviews, by gender LA12 % 100 of total employees 100 women 100 men Return to work and retention rates after parental leave, by gender LA15 Number Leavers: 47 female, 0 male Returners: 18 female, 1 male SO6 US dollars None in any of Amway in Europe’s 29 countries Society Total value of financial and in-kind contributions to political parties, politicians and related institutions by country Local communities Total donations for One by One Campaign for Children Amway in Europe corporate donations US dollars 636,520 US dollars 332,560 Amway in Europe distributor donations US dollars 302,007 Amway in Europe employee donations US dollars 1,952 Volunteering hours (distributors and employees) hours 33,649 Number of One by One projects supported projects 78 Environment Resource efficiency Energy consumption in buildings MWh 7,528 Direct energy consumption (gas heating) EN3 MWh 2,849 Indirect energy consumption (electricity) EN4 MWh 4,679 Energy consumption from business road travel litres 219,246 Air travel km 13,147,121 Recycled packaging Qualitative Smart Resources Programme Carbon emissions in Europe Total CO2 emissions CO2 emissions from buildings CO2 emissions from business travel tonnes 7,621 EN16 tonnes 2,700 EN17 tonnes 4,922 tonnes 5.68 (4) Carbon emissions per employee in Europe Total CO2 emissions per employee CO2 emissions per employee from buildings tonnes 2.15 CO2 emissions per employee from business travel tonnes 3.52 Carbon emissions per employee from buildings by country Austria tonnes 3.70 Belgium tonnes 0.26 Croatia tonnes Office closed Czech Republic tonnes 2.32 Denmark tonnes 1.33 Krakow tonnes 0.61 Finland tonnes 0.46 France tonnes Office closed Germany tonnes 2.69 Greece tonnes 4.34 Hungary tonnes 2.24 Italy tonnes 1.28 The Netherlands tonnes Office closed Norway tonnes Office closed Poland tonnes 1.05 Portugal tonnes Office closed Romania tonnes 3.18 Slovakia tonnes Office closed Slovenia tonnes Office closed Spain tonnes 0.23 Sweden tonnes 0.06 Switzerland tonnes Office closed Turkey tonnes 4.56 United Kingdom Ukraine 59 tonnes 4.01 tonnes 3.56 ACKNOWLEDGEMENTS Contact We welcome your views about our efforts to be a more sustainable company. You can contact us at: corporate.affairs.europe@amway.com Credits This report has been prepared by Amway Europe. Copyright © 2014 Amway Photographs in this report are copyright Amway GmbH unless otherwise stated. The paper used for this report is certified by the Forest Stewardship Council.
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