2000 CERES report

Section: 5

Policies, Organization & Management Systems

Ben & Jerry’s Mission Statement consists of three interrelated parts: Product, Economic and Social. Within the words of our Mission Statement, especially the social component, lies the foundation of our environmental philosophy:

The Ben & Jerry’s Mission Statement consists of three interrelated parts: Product, Economic and Social. Within the words of our Mission Statement, especially the social component, lies the foundation of our environmental philosophy:

Product Mission

To make, distribute & sell the finest quality all natural ice cream & euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients & promoting business practices that respect the Earth and the Environment.

Economic Mission

To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders & expanding opportunities for development and career growth for our employees.

Social Mission

To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally & internationally.

• Capitalism and the wealth it produces do not create opportunity for everyone equally. We recognize that the gap between the rich and the poor is wider than at any time since the 1920s. We strive to create economic opportunities for those who have been denied them and to advance new models of economic justice that are sustainable and replicable.


• By definition, the manufacturing of products creates waste. We strive to minimize our negative impact on the environment.


• The growing of food is overly reliant on the use of toxic chemicals and other methods that are unsustainable. We support sustainable and safe methods of food production that reduce environmental degradation, maintain the productivity of the land over time, and support the economic viability of family farms and rural communities.


• We seek and support nonviolent ways to achieve peace and justice. We believe government resources are more productively used in meeting human needs than building and maintaining weapons systems.


• We strive to show a deep resect for human beings inside and outside our company and for the communities in which they live.

• Complete the conversion of our domestic pint packaging to the Eco-Pint.


• Inventory and analyze ingredients containing genetically modified organisms (GMO’s).


• Implement our Sustainable Agriculture Initiative with the goal of reducing adverse impacts on water.

In 2000 we completed the conversion of our domestic pint packaging to our Eco-Pint, which is constructed from unbleached paperboard. We initiated this project three years ago following an environmental analysis of our packaging. We concluded at the time that the best environmental choice was to stay with paper and improve upon the paper we used. The unbleached paperboard in the Eco-Pint does not require bleaching. The bleaching process for paper results in the production of dioxins, which the EPA has determined are toxic.

In 2000 we undertook an inventory and analysis of all ingredients with regard to genetically modified corn and soy. We found that it was virtually impossible to secure GMO-free assurances from suppliers. In addition, there was no regulatory framework in the United States to guide the definition of GMO-free. Dairy is our primary ingredient. Since we oppose the use of rBGH and due to reformulations of other ingredients, our products meet the definition of GMO-free in the European Union and Japan.

Policies, Organization and Management Systems

Ben & Jerry’s is a dairy-based business. The most significant potential adverse impact of dairy farming is on the water supply. Many of our supplier farms are located in the vicinity of Lake Champlain which has experienced stress from phosphorus run-off from agricultural, industrial and municipal sources. In addition, Nitrogen can adversely impact groundwater quality.

With this in mind, in 1999 the company launched the Vermont Dairy Farm Sustainability Project. The goal of this project was to develop practical methods that could be used in typical dairy operations in Vermont and in the northeast to reduce the potential for phosphorus run-off and nitrogen leaching, while maintaining the economic viability of the farm. These methods are being documented from work done on cooperating dairy farms; the results are to be shared with the region’s dairy industry as a whole. Our decision to undertake the project was inspired by work done by Cornell University Professor Dan Fox. Professor Fox’s research indicated that over the course of a year, two-thirds to three-quarters of the phosphorus and nitrogen imported onto a dairy farm & mainly through feed and fertilizer purchases & remain on the farm. This can lead to a build up of nitrogen and phosphorus in the soil. The potential then exists for loss of nitrogen and phosphorus into ground- and surface-waters.

The project is a unique collaboration between Ben & Jerry’s, the St. Alban’s Cooperative Creamery, Poulin Grain Inc, Bourdeau Brothers of Middlebury, and the University of Vermont. A key premise of the project is that various shareholders must work in concert to bring about significant gains in sustainable agriculture.In 2000, the Project filed an application for nonprofit status with the Internal Revenue Service and a grant proposal was submitted to the Northeast Sustainable Agriculture Research and Education Program. As a result, The Vermont Dairy Farm Sustainability Project was one of 14 Research & Education proposals funded with a two-year grant of $96,800.

In 2000 there was one farm participating in the pilot phase; seven additional farms were enrolled for the demonstration phase. Preliminary results have been encouraging: work done on the pilot farm identified areas of opportunity for the reduction of nitrogen and phosphorus imports through increased precision in the farm’s feed and crop programs. Specific recommendations for improved precision showed a significant potential savings in input costs to the farm. The impact of recommendations and implementations for improved nutrient balance will be monitored in 2001 to assess final impact.

Policies, Organization and Management Systems

INTERNAL ENVIRONMENTAL AWARENESS AND EMPLOYEE EDUCATION
Ben & Jerry’s has always encouraged employees to take the initiative in improving all aspects of the company. Of the variety of environmental training programs and activities available to help promote employee awareness and involvement, many are employee-driven:

• There are employee-led groups called Green Teams at each Ben & Jerry’s site. Green Team members are environmen-tally concerned employees who work on company-related projects such as recycling and composting, as well as creating educational materials and other company communications. Each year the Green Teams organize an Environmental Awareness Week.


• There is an “Environmental Responsibilities” section in our Employee Orientation Handbook. This section outlines the CERES Principles and gives new employees ideas on how to help the company achieve its environmental goals. At ori-entation, new employees are given an introduction to and general training in Ben & Jerry’s environmental practices and policies.


• In 2000 we offered three training programs and staff development opportunities in The Business & Values School, The Leadership & Management School and the Technical School. Through Ben & Jerry’s University, utilizing internal resources and external providers, over 11,000 hours of classroom training was provided, involving 424 employees from all departments and sites.


• News and information relating to environmental and social mission-related policies, issues and activities are communi-cated via bulletin board postings, company newspaper, site meetings and company sponsored events. All employees are held accountable to the Company’s environmental policies through their performance reviews.


• Employees are members of specific waste reduction teams; their efforts contribute valuable information to projects that address waste at the source.


• Employees have access to hazardous waste training, environmental awareness training, classes required for wastewater license-renewal, and other related training opportunities.
• The Company provides a bonus program for rewarding employees’ outstanding achievements, including achieve-ments related to environmental performance.


• Environmental Coordinators conduct environmental aware-ness training at their sites.


• Training for retail shop owners includes education in the Company’s Environmental Program.

• CERES Reports are posted online at www.benjerry.com


• The 2000 Social Performance Report, which includes an objective view of Ben & Jerry’s environmental impacts and accomplishments for the year, is available on-line at www.benjerry.com, as are Social Performance Reports from previous years.


• One of the most popular tourist attractions in Vermont, the public tour at the Waterbury manufacturing site provides one of the most effective hands-on opportunities for Ben & Jerry’s to communicate its environmental and social mission philosophies, via the guided tour itself & which includes a Ben & Jerry’s multi-media show - as well as via information displays and printed materials.


• "Position Papers” on current environmental issues and company initiatives are available at Ben & Jerry’s retail outlets.


• The company’s annual One World One Heart Festival encourages public awareness of social and environmental issues and offers guests opportunities to get active. While each festival is unique, a few common themes persist: composting and recycling as much waste as possible are key goals at every festival. From the 4.5 tons of waste generated during the 2000 Festival, 63% was diverted to compost or recycling. In addition, festival-goers have the option to participate in our yearly postcard campaign, which focuses on various environmental and social issues.

Thermoacoustic Project Status
Ben & Jerry’s recognizes the severity of conventional refrigerants’ impact on the environment, and has long realized the need for alternative methods of refrigeration that can provide both practical as well as environmentally sustainable solutions for frozen storage applications. Promising research & development in Thermoacoustics technology may yield a solution; more than that, successful adaptation of this technology from laboratory benchtop to practical application would quite likely revolutionize the refrigeration industry. Thermoacoustics uses sound waves to provide the refrigeration. We’re currently working with researchers from Penn State’s Acoustics Research Labs (ARL) on a project to construct & test a prototype thermoacoustic unit that would be suitable for use in a Ben & Jerry’s freezer cabinet.

Ben & Jerry’s tracks the cost and impacts of all waste and energy use (e.g. waste disposal, recycling, composting, etc.) associated with company operations. The Manager of Natural Resource Use and the Environmental Coordinators use a system of integrated environmental tracking tables to collect data that’s updated monthly, and normalized to a gallon of first quality product. Solid, hazardous and dairy waste production data are collected, as well as data from wastewater production, energy usage and recycling.

Costs of each category’s management are also incorporated into the tables.

Since 1994 Ben & Jerry’s has been normalizing all figures with this unit of measurement in order to create baseline data that will serve to identify trends and set goals.

Ben & Jerry’s annually conducts and publishes the results of an independently audited assessment of the Company’s social performance in all areas of the business. The independent auditor for 2000’s Social Performance Report was James E. Heard. (His remarks, along with the complete report, are available for public review online at www.benjerry.com)

The Social Performance Report includes assessments of the Company’s environmental record for the year. In addition, yearly environmental assessments are conducted and their results circulated internally to evaluate regulatory compliance and individual site performance against annual goals. The internal environmental assessments are reviewed by plant managers. The Social Performance Report is reviewed by senior management for subsequent publication on the Company’s website.

There are two distinct components to our purchasing program: production items and services (product ingredients), and non-production items (NPI). The Quality Department administers the production items and services component through a Vendor Certification process; the NPI program is administered through the Purchasing Department.

The primary goal in 2000 was to introduce policies and procedures to the sourcing process for non-production items. While the primary objectives were to streamline, standardize, and minimize liability in sourcing of non-production items, we also successfully formalized a policy with key social mission value. Ben & Jerry’s developed a Supplier Diversity Program in 1999 with a commitment to grow and develop the initiative over the years. The new purchasing procedures require that any sourced item valued at or above $5,000 must include a request for a quotation from a minority-owned business whenever possible. At the time that the procedures were implemented an online directory was also provided for individuals for easy access to identify vendors meeting the criteria. Dollars spent with minority owned companies in 2000 far exceeded our goal by 162% growth over 1999.

Ben & Jerry’s has both a Pre-Certification Survey and a Self-Assessment Survey for all potential suppliers. There is no formal environmental training for Quality Assurance or Purchasing representatives at this time.

The company’s supplier assessment efforts began in 1996 when Ben & Jerry’s initiated a Vendor Certification Program. The purpose of this program was to improve the quality and reliability of the materials we purchase, increase efficiency and profitability in manufacturing operations, increase opportunities for Ben & Jerry’s vendors to profit from their relationship with us, and to clarify expectations, responsibilities, specifications, and procedures.

Following are the environmental questions we ask potential suppliers. These concerns are part of our assessment and routine visits with vendors:

• Does the company have an environmental mission statement or a group of related policies?


• Does the company align itself with any environmental principles such as CERES?


• Are all the waste permits for the company in place?


• What type of management and equipment are dedicated to complying with environmental laws and corporate policies?


• Has the company ever violated federal, state or local regula-tions?


• Is there documentation to prove adherence to these regulations?


• Does the company have an established waste reduction program that includes a recycling program?


• Where applicable, what type of wastewater management system does the company have in place?

Retail Merchandise Purchasing
In 2000, the Company adopted a new Merchandise Partner Terms of Engagement program consisting of a code of conduct and statement of principal to be used as a purchasing guide for the Company’s retail gift program. When purchasing products made abroad, the Company seeks to support and protect human rights by engaging merchandise suppliers who follow workplace and business practices consistent with Ben & Jerry’s values.

Aztec Harvests
The company continued in 2000 to source coffee extract from Coffee Enterprises. Coffee Enterprises sources their coffee beans for Ben & Jerry’s from Aztec Harvest Cooperative, which operates in a region of Oaxaca, Mexico. Cooperative members use organic agricultural methods.

One result of this relationship was that the Costa Rican rainforest has been reforested or reclaimed for sustainable production. This trading relationship helps to reduce pressure to clear-cut additional forests in this area. These purchases have also supported community development projects, including a regional health center, acquisition of supplies for schools and infrastructure improvements.

Universal Flavors, our supplier of banana puree, purchases the puree from the Borja family business in Ecuador. According to Universal, Borja is transitioning to organic farming methods as well as leading efforts to educate Ecuadorian farmers about sustainable agriculture. Borja’s banana processing facility offers workers medical insurance and transportation, and it has its own childcare center. Additionally, Borja has established The Water Foundation to increase awareness of environmental issues.

This manufacturer of our pint container sourced all of the paper that we used for our pints from Riverwood Paper Company. Riverwood’s manufacturing process for this paper is entirely free of chlorine bleach.

The Company’s relationship with stakeholders gains much of its strength from our franchise program. Over 290 shops worldwide provide plentiful opportunities for Ben & Jerry’s to communicate with customers; in 2000 another 63 shops added even more. In addition to providing ideal venues for company communications, shops are proactively connected to their communities, offering local support for regional social and environmental campaigns.

A key component of our franchise operations is the PartnerShop® Program. PartnerShop® are a unique type of franchise. Independently owned and operated by community-based nonprofit organizations, PartnerShop® offer supportive employment and job training to people who may face barriers to employment. The PartnerShop® Program is a key part of Ben & Jerry’s social mission. Building on a traditional scoop shop business model, participating nonprofit organizations create and operate franchises that provide employment and training opportunities for the people they serve. Ben & Jerry’s supports these social-purpose businesses with start-up and ongoing management assistance.

In 2000 we opened four new PartnerShop® locations. Existing PartnerShop® owners opened two stores and one kiosk. One new partner was added to the program. Juma opened in Pacific Bell Park, San Francisco, CA, and Common Ground opened a shop in Rockefeller Center and a kiosk in Bryant Park, New York City. Metro Community Investment (MCI) was our new partner with the opening of a shop in Minneapolis, MN. MCI is a nonprofit dedicated to reducing poverty by providing economic development and job opportunities for youth and low-income individuals.

In addition to the PartnerShop® opened in 2000, we have a PartnerShop® in Ithaca, New York, operated by The Learning Web, and three in New York City, two of which are operated by Common Ground (www.commonground.org), a nonprofit housing and training organization, and the other by the Postgraduate Center for Mental Health. We also have two PartnerShop® in San Francisco operated by Juma Ventures (www.jumaventures.org), a nonprofit youth services organization. Juma also operates a satellite business selling ice cream at San Francisco’s ballparks. There is also a satellite store in Siesta Key, Florida, owned by the Suncoast Regional Youth Consortium of Sarasota, a nonprofit with a School-to-Work, Tech Prep and Youth Council program.

Diversity and Ownership
At the end of 2000 we had 112 owners (independent operators, not corporations) in our franchise system. 19% of our independent owners are women and people of color, compared to 15% percent in 1999.

Franchise Community Initiatives
In 2000 the total amount spent by franchisees on community-based efforts was $385,968, or 13% of the annual 4% marketing obligation, as compared to $343,076, or 13%, in 1999. In 2000 operators were asked to report activities by category (ie. community initiatives). Of the total local spending 55.5% was focused on Children & Families; 24.8% went to Civic Projects; 15.3% on Other and 4.4% on Environmental Initiatives.

2000 Free Cone Day
As a way to celebrate and to thank our customers, the Company holds an annual Free Cone Day. During Free Cone Day 2000, 835,000 free cones were served & an amount equalling over 208,000 pounds of ice cream, frozen yogurt and sorbet.

EMERGENCY RESPONSE AND PUBLIC DISCLOSURE
All of Ben & Jerry’s sites have trained personnel and equipment capable of handling chemical emergencies. Following is a list of the steps we take to ensure employee, community and environmental safety:

• Each site that handles potentially hazardous chemicals (St. Albans, Springfield, Waterbury, Distribution Center) is fully furnished with Level A Chemical protective suits, monitor-ing equipment, self-contained breathing apparatus (SCBA) units, and other hazardous material (HazMat) response equipment. Trained HazMat teams are comprised of mainte-nance staff, employees and volunteers from various depart-ments, including all managers and supervisors.


• Each site is required to submit to the State of Vermont a complete listing of hazardous chemicals used on site. In addition, walk-throughs of each plant are conducted with outside emergency personnel to identify hazardous areas.


• Each manufacturing site has completed the Risk Management Program as required by the Environmental Protection Agency’s Chemical Emergency Preparedness and Prevention Office. This program requires the company to prepare two risk scenarios based upon the amount of anhydrous ammo-nia stored on-site.


• Ben & Jerry’s safety personnel continually attend seminars and conferences designed specifically for Emergency Response discussions. We continue to correspond with the University of Massachusetts Lowell Work Environment Laboratory and the New England Environmental Trainer’s Group, and have shared information contained in newslet-ters sponsored by the University.


• Ben & Jerry’s safety staff are members of the Vermont Safety and Health Council.


• All of Ben & Jerry’s Emergency Response plans have been updated to include Process Safety Management and Risk Management Planning. They are available for review by affected parties, including local ER personnel, town officials and homeowners.


• Ben & Jerry’s works with local response crews to update emergency response training.


• Ben & Jerry’s is happy to provide facility-specific informa-tion to the communities where plants are located.


• Ben & Jerry’s reports to Tier II (Vermont’s Community Right To Know Program), which lists any and all Hazardous Materials/Chemicals that are used and/or stored on site.