2013 SUSTAINABILITY reporting on our sustainability journey DEAR FRIENDS, 2 Straight from “the hive,” we present to you our 2013 public sustainability report. Here we share all we accomplished in 2013, where we fell short, and what we plan to accomplish in 2014. Since our foundation 40 years ago, we have always operated with values dedicated to using our resources wisely. In 2013, we increased our focus on educating our staff and community about the GloryBee brand. As our father, co-founder Dick Turanski, believes: “This means sharing our time, talent and treasure with those we come in contact with.” From our beginning as a simple family honey stand to the thriving and diverse business we oversee today, we remember our roots while taking great strides towards the future. GloryBee remains family-owned and extends into a larger family of employees, which includes a set of three sisters (heads of accounting, purchasing, and product management), a set of twins and three married couples. As we continue to grow, we diligently build genuine relationships with each other, working towards a common goal. 2013 was a year of significant changes for GloryBee. We launched our new company brand mark; the new look and logo visually represents and acknowledges our early beginnings and our special relationship with the honey bee. To us, a honey bee hive represents a thriving, loving community, displaying care and concern for the greater good. Bees help plants flourish and serve as a reminder of a unified family bursting with real teamwork. Honey bees produce a sweet, nourishing and healing reward and we aim to do the same as a company. As we rebranded, we discovered clarity in our mission and new purpose, leading to a refreshed spirit in “the hive.” We are excited to share some of GloryBee’s significant sustainability milestones from 2013 and we ask you to celebrate with us as we forge new territory while embarking on our 40th year in business. We are very touched and thankful to our new friends and community partners for the support we received for our “Save the Bee” program, launched in 2012 with the purpose of raising awareness and support for the plight of the honey bee and the American beekeeper. The engagement from people and organizations that share our concern and value honey bees has been wonderfully overwhelming. Our employees, who are amazing in so many ways and have worked hard to be our brand ambassadors, boldly face the challenges of the swiftly changing natural foods industry landscape. Thank you for supporting GloryBee and enabling us to achieve great things in 2013! Our very best, Alan Turanski Vice President RaeJean Wilson Vice President of Stewardship & Brand Alignment This report is our story. We are excited to share how we worked together to bring another incredible year of growth, prosperity, and strides towards a sustainable future. 4–5 10–12 17–19 THE PATH TO SUSTAINABILITY FAITH STEWARDSHIP Employees Distribution Education Packaging 6–9 13–16 GENUINE RELATIONSHIPS HEALTHY LIVING Sourcing Community Water Waste Organics Solar & Renewable Energy 3 our blessings. Without these enduring values, GloryBee would not be what it is today, and we know that only by holding firmly to these values can we continue to grow and flourish in a responsible way. The GloryBee Family The Path to Sustainability In 40 years of doing business in the Pacific Northwest, our company has held a steadfast commitment to social and environmental responsibility in all our business practices. This originates from the values our founders, Dick and Pat Turanski, established in GloryBee’s early years, and which GloryBee unwaveringly adheres to as we move into the future. Due to a strong foundation of faith in God—the true reason we are in business—we believe all things are possible when we work together with the goal of helping others. We value the genuine relationships we have with our 4 co-workers, customers and community, and we endeavor to be authentic, adaptable and successful, so everyone benefits. With a focus on healthy living, we do our utmost to educate those we come into contact with. We make healthier choices available in order to care for ourselves, our families, and our community, and we make it a priority to source ingredients that sustain our environment. Stewardship is a passion in our hive as we seek to impact our community through our work and actions on a local, regional and national level, help create positive changes and share Since 2009, GloryBee has regularly participated in sustainability analysis, measurement, and has reported to, reviewed, audited and been approved by the Sustainable Food Trade Association (SFTA). Sustainability has always been a defining feature of our work as people, planet and prosperity are fundamental to our company’s mission. GloryBee values our employees, community residents, and those who produce the products we sell. For the health of our planet, we reduce our impact on the earth by using earth-friendly practices whenever possible and practical. To us, prosperity means we are able to give back. Being financially responsible is crucial to ensure the continuation of our sustainable practices and ability to share our bounty with others. We are committed to sharing a significant portion of our profits to help our community and to support causes that align with our mission. Our commitment to the highest moral and ethical standards is demonstrated in our efforts to care for the people and ecosystems affected by our business. This includes all our customers, employees, suppliers, and local and global communities. In our new brand mark we celebrate our original commitment to the honey bee. We acknowledge our dependency on our favorite pollinator; without them we would not have been inspired to be in business! The logo honors our deeply rooted passion for the value bees offer our planet by pollinating over 30 percent of our global food supply. Our desire to protect our environment and sustain it for future generations is at the forefront of who we are, what we do, and why we are in business. GloryBee is pleased to share some of the unique ways we incorporated people, planet and prosperity into our business through this report. We installed solar power at our facilities, educated budding beekeepers about how to start their own hives, developed a company-wide recycling program and contributed to our local community with food donations, funding, and volunteerism. Our challenge is to maintain these values with our growing business and the crossgenerational population of employees that continues to evolve right before our eyes. GloryBee’s commitment to sustainability continues as we integrate more sustainable practices deliberately and effectively into our daily operations and long-term strategic planning. Our Dick Turanski in 1974 with his first 25 honey bee hives. He started a business selling honey & beekeeping supplies. emphasis over the coming years will be on continued development of the internal processes which prioritize sustainability as a strategic pillar. Therefore, as you will see on the following pages, we have developed a framework for our external reporting process, serving to help shape and guide our company’s efforts. SUSTAINABILITY SUPERVISOR At the end of 2013, we increased our sustainability efforts by adding a Sustainability Supervisor to our team. Shandy Buckley has a Bachelors of Science in Environmental Science from the University of Hawaii at Manoa and a Masters of Science in Marine Science from Moss Landing Marine Laboratories, California. Growing up in New Zealand, Shandy learned to conserve resources, reduce water use in the summer, separate compost and recycle to reduce trash and save electricity by turning off lights when leaving the room. While studying the impact of Ocean Acidification on the West Coast shellfish industry, she learned how shellfish farmers, scientists and policy makers were working together to identify the problem, begin working on a solution, and was inspired to look for other ways groups of different people can work together towards solving environmental problems. At GloryBee, Shandy finds ways to reduce our resource consumption and help raise awareness of the environmental issues that need more study or better legislation. Shandy Buckley Sustainability Supervisor 5 Genuine Relationships We believe building genuine relationships is crucial to ensuring complete confidence in the work we do and the business partners with whom we work. These relationships help us decide where we source ingredients and create a commitment to renewable solar energy and water conservation. We develop a loyalty to utilize natural resources to their fullest A visit to Hunton Farms, one of our local suppliers of grain. 6 potential. SOURCING Our long-term and unique relationships with beekeepers, growers and suppliers is a defining element of GloryBee’s foundation for President/Founder Dick Turanski and Vice President Alan Turanski. These relationships continue to help us find and provide our customers with high quality ingredients mutually beneficial to both our customers and suppliers. We are committed to ensuring the Fair Trade labor and growing practices employed in ingredient production through partnerships and preservation of animal habitats. We have increased our Fair Trade certified product line by 34% since 2012. In 2013, Aunt Patty’s ® introduced Organic Red Palm Oil to her extensive line of products. As Aunt Patty’s ® continues to add products, her awareness and concern for more sustainable items has increased. Through a “Farmer to Fork” supply chain, in which small Northwest Ecuador family farmers grow the red palm, we are able to verify sustainable collection, production and processing of red palm oil. They meet organic standards while making sure no rainforests or animal habitats are impacted, specifically of orangutans. By sourcing our red palm oil from Ecuador Pounds of Fair Trade Certified Products (a geographical habitat which does not 71,408 LBS 84% include orangutans), the product travels a shorter distance and uses fewer resources than red palm oil sourced from Asia. Our Increase from 2009 to 2013 46,408 LBS 22,944 LBS supplier is also certified by the Roundtable on Sustainable Palm Oil (RSPO). They commit to social responsibility and 30,853 LBS community development by planting on previously-farmed land (no rainforests are cleared for this crop), trees are planted on 11,162 LBS degraded land (increasing CO2 uptake and oxygen production), and trees are fertilized 2009 2010 2011 2012 2013 with organic, self-made compost. 7 WATER In comparison to many other manufacturing businesses, GloryBee does not consume large quantities of water. However, with 2013 production increase and a new chilling system, there was a boost in water usage. It then becomes more vital to protect and utilize this resource wisely. Middle Deschutes River Restoration To offset water usage each year, GloryBee purchases water restoration credits through the Bonneville Environmental Foundation to directly support a 35-mile section of the iconic Deschutes River flowing between the city of Bend and Lake Billy Chinook, Oregon. Redband trout, otters, ospreys, and myriad wildlife inhabit this section of river and depend on clean, healthy water. New solutions have been developed to restore over 115 cubic feet per second of flow to the Middle Deschutes during the .034 2010 .042 2011 .044 2012 8 .062 2013 To decrease water use in 2013, we: • Introduced a honey chilling system, which lowers honey temperatures quickly to improve quality of honey. The remaining heated water is then used for washing empty honey totes. • Used a bioswale outside our production facility to help purify and filter water and keep pollutants out of the waterways. • Purchased water restoration credits (WRCs) through Bonneville to support the Middle Deschutes River Restoration. GALLONS OF WATER PER POUNDS OF PRODUCT summer months, due to partnerships with businesses like the Portland Trail Blazers, the Deschutes River Conservancy, and local irrigation districts. BEF and our partners’ purchase of Water Restoration Certificates ® provide funding allowing negotiated lease agreements, fostering a healthy ecosystem for people, plants and wildlife. Nearly 488 million gallons were restored to more than 30 miles of river since 2009. SOLAR & RENEWABLE ENERGY GloryBee remains dedicated to reducing energy consumption and uses best-management practices at our two locations. We store, process, and distribute our products using the most earth-friendly means possible. We utilize solar, wind, hydro-wave and geothermal environmentallyresponsible renewable energy and purchase Renewable Energy Credits (RECS) to offset 100% of our fossil fuel usage. To improve energy use in 2013, we: • Completed installation of a 19 kw solar electric system to complement the 23.4 kw system installed in 2012. Our solar array is on the roof of our production facility and has the potential to generate 46,618 kwh of renewable solar energy with potential to offset 11.3% of the facility’s energy consumption. • Transitioned from individual room A/C systems to modern HVAC systems. ELECTRICITY KWH PER POUND OF PRODUCT 83 80 90 SOLAR POWER GENERATION 9% 87 ELECTRICITY USAGE SOLAR ENERGY 9 2010 2011 2012 2013 Faith Far left left photo. photo. Far The GloryBee GloryBee Sales Sales staff staff gathers gathers in in celebration celebration The of national national “Love “Love Bulk Bulk Foods” Foods” week. week. of Right photo. photo. Right GloryBee visits visits the the Gross Gross family family at at Cascade Cascade GloryBee Farms as as they they inspect inspect their their hives, hives, making making Farms sure the the bees bees are are healthy healthy and and the the queens queens are are sure producing. producing. Our people are the heart of our company. We believe people are important. Our faith in each other, our customers, and our community around us, come first. We direct our efforts towards what really matters in both our business and personal lives and focus on how our work together produces a better end product. Through our faith in our team members, continued education, and holding ourselves to high standards, we see firsthand that “the whole is greater than the sum of its parts”. 10 EMPLOYEES Employees are the foundation of our business, we offer training, high safety standards, performance evaluations, and generous benefits to foster their health and well-being. GloryBee is grateful it has never had to lay off an employee in more than 20 years, especially in an economy that currently continues to struggle. To improve employee support in 2013, we accomplished the following: • 18.9% of our workforce received an internal promotion. • A retention rate of 70%. • Provided 2,262 hours of employee training. • 75% of medical and 100% of dental insurance premiums were paid by the company. • Entry level position pays 130% of a living wage for one person in Lane County. • Six employees returned to GloryBee after working at other companies. WORK FORCE METRIC 98% Full-Time Employment 72% Hourly Rate 28% Salaried Employees 93% Employees Receiving Health Care 70% Retention 19% Received Internal Promotion The GloryBee family exists within and in our family, which represents our family I would other coworkers.” Cindy believes, extends to families beyond the Turanskis. culture. We pretty much tell each other “We share the same work ethic that we Cindy, Teri, and Shannon – also known as ‘like it is’ even if it may be hard to hear. But were taught by our parents. At times this the “three sisters” – take this to heart as we always know we have the best interests work ethic takes over, which can cause an they work in this family-owned business of the other at heart.” Teri states, “I can be imbalance in our personal lives. Since we all that includes their own family. These sisters more direct in a conversation with them and understand the culture, we also notice when work closely together, though in different cut through some of the politically correct that happens so we help each other get departments, with more than 47 combined verbiage I use with my other coworkers. I back on track.” The three sisters consistently years of GloryBee experience. According to will have to admit at times I do feel more demonstrate faith in each other and faith in Shannon, “We are very close and genuine protective of them in stressful situations than the direction of GloryBee. EDUCATION GloryBee makes “educating people about healthy living” a top priority. This passion to educate our customers and community about healthy and sustainable products is communicated through our health and wellness fairs, event sponsorships, donations, catalogs, website, newsletters, social media, community events, and Factory Store craft classes and workshops. Bee Weekend Weekend Bee A “Packaged” “Packaged” A hive ready ready to to be be hive picked up. up. picked One of of our our favorite favorite opportunities opportunities to to One beekeepers learn learn how how to to successfully successfully start start beekeepers Beekeeping Federation Federation representative representative Beekeeping engage the the local local community community is is through through our our engage their own own hives, hives, benefitting benefitting from from our our family’s family’s their traveling around around the the country country promoting promoting the the traveling annual spring spring event, event, which which kicks kicks off off when when annual decades-long experience experience in in maintaining maintaining decades-long honey and and beekeeping beekeeping industry. industry. “Bee “Bee Girl” Girl” honey truckload of of live live bees bees arrives arrives mid-April mid-April at at aa truckload healthy backyard backyard hives. hives. healthy Sarah Red-Laird, Red-Laird, an an experienced experienced beekeeper beekeeper Sarah our Factory Factory Store Store for for hobby hobby beekeepers. beekeepers. our We strengthened strengthened the the event event and and We array of of activities activities using using beeswax, beeswax, honey, honey, array “Bee Weekend” Weekend” which which includes includes two two days days “Bee relationships by by adding adding aa visit visit from from the the relationships propolis and and more. more. propolis of festivities, festivities, demonstrations, demonstrations, and and specials. specials. of 2013 American American Honey Honey Queen, Queen, an an American American 2013 2013 marked marked our our 39th 39th year year and and continued continued 2013 tradition of of inspiring inspiring Healthy Healthy and and Sustainable Sustainable tradition Living through through Beekeeping. Beekeeping. Living Beekeeping demonstrations demonstrations are are given given Beekeeping by our our company company founder founder and and President, President, by Dick Turanski, Turanski, and and his his son, son, Vice Vice President President Dick Alan Turanski, Turanski, with with some some assistance assistance from from Alan grandson, John John Turanski. Turanski. Local Local area area grandson, 12 and honey honey bee bee ambassador ambassador conducted conducted an an and We celebrate celebrate the the bees’ bees’ arrival arrival with with our our We A harvest from Pat Turanski’s garden (co-owner of GloryBee). Each season she brings the spirit of her passion for healthy and organic foods to her family and friends. The choice to source more organic products, educate our community, and reduce our waste consumption helps to better sustain our environment for our future generations. Healthy Living GloryBee believes health encompasses our mind, body, and spirit. We feel fortunate that our job is to source, produce and distribute high quality healthy products and we want to share our passion to achieve a healthy lifestyle with others. Healthy Living is a key driver for our sustainability practices. 13 ORGANICS GloryBee and our customers are directly involved in the growing popularity of organic, non-GMO, and other products that support our ecosystem’s health. To improve our growth in organics: • We sold nearly 40 million pounds of products; 38% were organic. • Increased total organic products by 5 million pounds since 2010. • Completed the Non-GMO Project Verified certification process for 25 products. 2011 2012 2013 PERCENTAGE OF ORGANIC LBS OF PRODUCTS 14 ORGANIC 38% CONVENTIONAL ORGANIC 36% CONVENTIONAL ORGANIC CONVENTIONAL 34% 62% 64% 66% COMMUNITY In 2013, “giving back to the community” took on a new meaning with increased employee engagement and Aunt Patty’s ® launching her social responsibility program dedicated to educating kids about healthy eating. Due to the company’s paid community service benefit and funds raised by Aunt Patty’s ® “Food For Health” program, GloryBee employees ventured out to work with the School Garden Project of Lane County, the Eugene Mission, the Children’s Relief Nursery, LCHAY, Food Corps and many more local non-profit organizations. It has been a passion of our CoFounder Pat Turanski to share the bounty of the earth and to care for children. This program allows us to give back as we align with our values and goals. Urban Farm “We Can” sustainability scavenger hunt School Garden Project GloryBee Health and Wellness Fair On January 8, 2014, GloryBee was awarded the 2013 Bold Steps Award in recognition of our efforts as a Eugene-based sustainable business. The award represents a partnership between The City of Eugene Mayor Kitty Piercy and BRING’s RE:think Business program. GloryBee earned the award due to: • An extensive employee benefit plan, health incentives program, and a comprehensive performance evaluation program. • An 18% improvement in total energy efficiency; reducing energy use per pound of product from 194 btu/lb to 163 btu/lb. • Two primary social initiatives: 1) Save the Bee, addressing the declining honey bee population. 2) Food for Health, which supports nonprofits that work for child health, nutrition, and physical activity issues. • The City of Eugene considers sustainability as balancing all three aspects of the triple bottom line – people, planet and prosperity – to address the community’s present needs without compromising future generations. The Bold Steps Award recognizes businesses that take bold steps in each area of the triple bottom line. 15 WASTE Improving our annual waste diversion has taken a concentrated team effort by all employees. At GloryBee, we divert 12 different categories of waste from the landfill: Commingle recycling, cardboard, styrofoam, wood, plastic film, hard plastic, metal, ink cartridges, light bulbs, batteries, compostables and liquid waste. 16 In 2013, GloryBee purchased and produced nearly 40 million pounds of products. Our waste stream includes production, warehouse, and administrative waste. We diverted 81% of our waste stream from the landfill by recycling or composting. In addition, we donated nearly 4 million pounds of food to Food for Lane County and the Eugene Mission. In 2012, we considered food donations as waste. But as these products are now being consumed, we no longer count them as waste. 39% COMMINGLE 19% TRASH 15% CARDBOARD WOOD 8% PLASTIC FILM L LAETTEAM M MEMTEATAL L METAL 8% 4% PLASTIC DRUMS & TOTES COMPOSTED 2% 3% 81% DIVERTED WASTE Stewardship At GloryBee we produce, source and provide natural foods and products, conserve natural resources and share our profits with others. Stewardship is integral in our sustainability efforts, as it requires us to remain responsible for our environment and continue to protect our resources. Our desire to reduce packaging and fuel consumption is reflected in the improvements we made to our transportation, production and sourcing processes. When Dick and Pat Turanski started GloryBee, it came naturally to them to conserve precious resources and give back to their community, customers and planet. Above, the Turanski’s backyard garden where their bees enjoy the nectar of nearby blossoms. 17 DISTRIBUTION Transportation is an area we can directly control, as we own our fleet of trucks and employ our drivers. We maintain greater monitoring in this area by tracking truck and driver efficiency, and achieve fuel efficiency improvements by: • Increasing haul backs allows us to return items to our facility in one round trip. • Adding aerodynamic devices and single-wide tires to our trailers to increase fuel mileage. • Our fleet traveled 12% farther and carried 9% more products (by weight), equaling 2.6 million more pounds. • Adding B-Line (electric bike) delivery in Portland to reach customers in 16 downtown locations, translating to 26,300 pounds of food delivered by a more efficient means. • Purchasing biodiesel from Oregon-owned companies that reclaim oil from food industry sources. It is made from 100% recycled oil and re-purposed from waste food grade oil. In fact, in 2013 we contributed to our own biodiesel supply, selling 12,160 pounds of inconsumable oil product to our biodiesel provider. TRANSPORTATION IMPROVEMENTS Millions of Pounds Transported Increased by: 3% Improved Mileage per Gallon: Saved Biodiesel Fuel: 18 2.6 M 2,600 Gal Traveled Farther: Pounds Delivered per Mile on our Fleet: 12% 51 Lbs PACKAGING MATERIALS GloryBee has reused packaging material since the early days of the business when it was located in the Turanski family garage. As a resource we directly control, we diligently reduce packaging and marketing materials and use post-consumer or recyclable packaging and marketing materials whenever possible. As stewards of our resources, it is our responsibility to work with our suppliers of containers and labels to provide sustainable options. To improve our use of packaging materials, we: With the amount of products we produce automated bottling line. As a result of a new 6-count (our standard case size) for and pack each year, we are aware of how the tour, our purchasing and production completed product. Now we are able to many materials go into each completed teams modified our packaging process. use one box from start to finish reducing item. In early 2013, our production manager Originally, our jars arrived in a 12-count production labor and saving 18,279 pounds and production planning supervisor toured box, requiring us to remove the jars, break of corrugated cardboard from the recycle a customer’s facility and reviewed their down and recycle the boxes, and assemble stream. • Changed boxes so we could ship products in their original packaging; reducing resources and saving costs. • Used bubble wrap manufactured with a minimum of 50% recycled content and is 100% recyclable. • Recycled a total of 110,429 lbs of cardboard; a total of 16% of our waste stream. • Recycled 38,118 lbs of plastic film, a total of 5% of our waste stream. • Sold 920 plastic drums to Eugene residents. • Washed about 3,900 totes per year. 19 Company Goals for 2014 & Beyond ORGANICS DISTRIBUTION ENERGY • Increase verification of non-GMO products. • • • Increase Organic products to 50% by 2018. • Label all non-GMO products by 2018. Implement onboard recording devices on all delivery trucks. • • Implement driver training for improved safety, fuel efficiency and reduce wear and tear. CLIMATE CHANGE WASTE DIVERSION • Record employee Monitor energy consumption on a monthly basis. Increase transportation efficiency to 7.5 mpg in 2019; a 3% improvement every year. • Identify main energy improvement areas. • Keep energy use • increases in line with increases in electricity use. • • business travel. • Survey supply chain practices. Zero waste certified by 2018. • Reduce 2014 waste to 85% diverted. • Move toward a paperless invoicing system. • Create packaging standards where all packaging is reusable, WATER Reduce non-production related water usage. • Monitor water usage on a monthly basis. Reclaim and reuse water on site. recyclable, compostable, or made from sustainable materials. EMPLOYEES & LABOR • Key Performance Indicator bonus program for all team members. • Sustainability training. • Eliminate human and ecosystem risk by achieving 100% nontoxic and non-persistent chemical usage. • Increase annual employee sustainability training and engagement.