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  5. Sustainable Products

Sustainable AGRANA products in accordance
with the EU-Taxonomy

In summer 2020, the European Union adopted the Tax­onomy Regulation (Reg (EU) 2020/852), which defines criteria for reporting revenues, investments and oper­ating expenses from or in sustainable economic activities. To be considered sustainable, economic activ­ities must serve one of six EU environmental objectives – climate change mitigation, adaptation to climate change, sustainable use of water resources, transition to a circular economy, pollution prevention, or protec­tion of ecosystems and biodiversity – without signifi­cantly compromising any of the other five. In addition, they must meet minimum social standards. For AGRANA's 2021|22 financial year, non-financial compa­nies only report their EU-taxonomy-eligible revenues, capital expenditures and operating expenses. The deter­mination of these taxonomy-eligible key performance indicators (KPIs) was based on the technical screening criteria for the economic activities identified under the two goals of climate change mitigation (EU objective 1) and climate change adaptation (EU objective 2).

Taxonomy-eligible revenue in 2021|22

As the current EU taxonomy rules do not yet address economic activities in the production of food and bev­erages or food ingredients, a large part of the AGRANA Group’s revenue is not yet within the scope of the EU taxonomy. For the 2021|22 financial year, in the numerator of the ratio that represents the KPI in question, the AGRANA Group can therefore report taxonomy-eligible revenue only from its business activities under "4.13. Manufac­ture of biogas and biofuels for use in transport and of bioliquids" from bioethanol produced at the site in Pischelsdorf, Austria; from the biogas production, pro­cessing and injection of biomethane into the local natural gas grid at the sugar factory in Kaposvár, Hungary, to be classified under business activity "5.7. Anaerobic digestion of biowaste" (for details, see the Sugar segment report, page 72); and from thermoplastic starch produced at the Gmünd, Austria, starch plant under activity "3.17. Manufacture of plastics in primary forms". The denominator of this KPI consists of the revenue reported in the 2021|22 consolidated financial statements.

Economic activities

Unit

Revenue in 2021|22

Share of revenue
Taxonomy-eligible revenue (A2) €000 226,335 7.8%
Taxonomy-non-eligible revenue (B) €000 2,675,209 92.2%
Total (A2+B) €000 2,901,544 100%

Taxonomy-eligible capital expenditure in 2021|22

EU-taxonomy-eligible capital expenditure in AGRANA’s business activities in the 2021|22 financial year related to investment falling under, among others, the eco­nomic activities "4.25. Generation of heat/cold using waste heat", "7.1. Construction of new buildings", "5.1. Construction, expansion and operation of water collec­tion, treatment and supply systems", "6.5. Transport by motorbikes, passenger cars and light commercial vehi­cles", "7.2. Renovation of existing buildings" and "9.1. Market-oriented research, development and innova­tion". The sum of these investment expenditures repre­sents the numerator of the KPI. The denominator consists of the amount of "purchases of property, plant and equipment and intangibles" re­ported in the 2021|22 consolidated financial statements.

Economic activities

Unit

Capital expenditure
in 2021|22

Share of 
capital expenditure
Taxonomy-eligible capital expenditure (A2) €000 8,756 10.6%
Taxonomy-non-eligible capital expenditure (B) €000 73,611 89.4%
Total (A2+B) €000 82,367 100%

Taxonomy-eligible operating expenses in 2021|22

The EU taxonomy's definition of operating expenses, which is limited to the areas of maintenance and re­pair, short term leases, building renovation, research and development, and training, together with the ex-post consideration of existing capital and operating ex­penditures carried out in the 2021|22 financial year, restricts the reporting of taxonomy-eligible operating expenses in the financial year mainly to those for "4.13. Manufacture of biogas and biofuels for use in transport and of bioliquids", "9.1. Market-oriented research, development and innovation", "5.1. Construction, ex­pansion and operation of water collection, treatment and supply systems", "5.7 Anaerobic digestion of bio­waste", and "6.6 Freight transport services by road". The total of these expenses represents the numerator. The denominator of the KPI in question cannot be ob­tained from the 2021|22 consolidated financial state­ments due to the EU-taxonomy-specific definition of operating expenses.

Economic activities

Unit

Operating expenses
in 2021|22

Share of 
operating expenses
Taxonomy-eligible operating expenses (A2) €000 6,370 10.7%
Taxonomy-non-eligible operating expenses  (B) €000 53,151 89.3%
Total (A2+B) €000 59,521 100%

Organic products in all business segments – Organic is more than just a trend

At AGRANA, we were early to identify the steadily growing levels of awareness among consumers with regard to sustainability and health as well as the rising demand for organic products. We offer organic products in all of our business segments; products which are certified by independent monitoring agencies.

  • Organic Fruit Preparations

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    Minus

    Or­ganic Fruit Prepa­ra­tions

    As studies have highlighted, besides eggs, milk and bananas, organic fruit yoghurts are among the most frequently purchased organic foods in Austrian retail outlets. It is highly probable that the fruit contained in these products is from AGRANA given that AGRANA Fruit Austria and Germany are the European market leaders in organic fruit preparations. These products have been produced at our facilities in Konstanz, Gleisdorf and Kröllendorf for over 20 years on the basis of close cooperation with customers.

    The strict regulations applicable to organic products also entail additional requirements placed on AGRANA in terms of the traceability of the ingredients. Pursuant to EU directives, fruit preparations for use in organic fruit yoghurts are not permitted to contain any preservatives or colouring agents; restrictions which have a major influence on the careful selection of the fruit to be processed. Furthermore, organic fertilisers such as compost, manure or slurry have to be used instead of synthetic chemical fertilisers. Weeds and pests have to be controlled primarily by mechanical means or so-called 'natural enemies'. In order to be able to meet these requirements, AGRANA sources its commodities exclusively from growers with whom it has established long-term partnerships or from its own fruit plantations. In Poland and Ukraine, AGRANA operates its own processing plants in which the freshly harvested organic fruit is sorted, cleaned and freeze-dried as soon as it is picked.

  • Organic Fruit Juice Concentrates

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    Or­ganic Fruit Juice Con­cen­trates

    The trend in favour of organic products has also caught on in the beverages industry. Consumer demand for organic juices has led AGRANA Juice to respond accordingly and extend its product range to include certified organic fruit concentrates. This new organic product line includes apple and elderberry fruit juice concentrates as well as the extraction of organic flavourings during the production of apple juice.

    In the course of its good cooperations with contract farmers, AGRANA Juice continues to encourage the expansion of organic growing practices in order to also be able to guarantee customers outstanding safe product quality in the years ahead.

    In the near future and with an eye on other consumer developments, AGRANA Juice plans to extend its organic product range to include, for example, premium quality fruit juices such as raspberry

  • Or­ganic starch prod­ucts

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    Or­ganic starch prod­ucts

    In its Starch segment, the mill in Gmünd processes organically grown potatoes a year to produce organic starches and starch derivatives. The Aschach mill processes organic corn. Both mills make use of the latest environmentally sensitive processing methods. The AGRANA facilities in Aschach and Gmünd are among the first industrial processing plants in Europe to be certified as organic processors.

    Organic starches are used in nearly all processed organic food and semi-luxury food products such as desserts, soups, sauces, snacks as well as chews and jelly-based products as an indispensable thickening, stabilising and flavouring agent

  • Organic Wiener Zucker

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    Or­ganic Wiener Zucker

    While organic sugar in the past was largely imported from Africa as organic raw sugar, during the 2008|2009 campaign AGRANA for the first time produced organic beet sugar in accordance with the requirements of the EU directive on organic farming. During the first growing season (2008), around 300 hectares of land was cultivated by around 80 farmers. These figures have approximately more than doubled in a few years.

    In the interests of ensuring an economic cycle which is as complete as possible, the refining of organic sugar also entails the manufacture of by-products such as organic animal feed and fertilisers. This nearly complete recycling of agricultural commodities allows quantities of waste products to be reduced and is consistent with the underlying principles of ecologically sound economic practices.

    AGRANA's organic beet sugar is available in retail outlets under the Wiener Zucker brand and is also sold to the food processing industry.

     

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