MANAGING RISK IN ASSOCIATED BRITISH FOODS Steve Bradley 97,000 - PowerPoint PPT Presentation

1 MANAGING RISK IN ASSOCIATED BRITISH FOODS Steve Bradley

97,000 employees George Weston, CEO UK Grocery Twinings Ovo ACH George Weston Foods ABF Ingredients AB Mauri AB Agri British Sugar Group Primark • AB World Foods • Allied Bakeries • Europe • Allied Mills • AB Enzymes • British Sugar UK • Baking • North America • Allied Technical • ABITEC Corp • AB Agri UK • BSO China • Brazil • Cereals • Pacific Grain • AB Agri China • Azucarera Ebro Centre • South America • Meat & Dairy • Jordans Ryvita • Frontier (50%) Products • Illovo Sugar (51%) • South & West • Animal Nutrition • Speedibake • Yeast Extract • Germains Asia • Silver Spoon • Jasol • China, East Asia • Westmill Foods Pacific 2

40 Countries Main Locations Italy Spain 3 Finland Germany Netherlands India Ireland Poland China Canada Switzerland UK Philippines US Turkey France Thailand Pakistan Portugal Mexico Sri-Lanka Vietnam Tanzania Columbia Malaysia Australia Malawi Brazil Ecuador Zambia Indonesia Mozambique Uruguay Peru New Zealand Argentina South Africa Swaziland Chile

Men and machetes 15,000 people movements a day! 4

Raw material transport 5

Large factories 6

Machinery Sugar Cane Factory, Mozambique 7

Chemical operations 8

Sophisticated operations and control systems 9

Highly automated processes 10

Large bakeries Bakery in Australia 11

Vehicles and members of the public 12

Members of the public 13

ABF Culture 14 97,000 employees in 30 companies in 40 countries Very ‘hands - off’ corporate style (only 94 direct ABF employees) Autonomous structure allows flexibility and entrepreneurship

ABF Culture 15 Legal compliance in the countries in which we operate High levels of operating efficiency We Require Sustained growth Sustained safety improvement Few rigid global standards or ‘manuals’

Basic Values 16 • Legal compliance • Operate ethically • Sustained improvement • Looking after our people • Safe • Respect their human rights • No discrimination • etc

Products 17 Seed coating and grain processing Flours Yeast and bakery ingredients Enzymes, lipids, proteins, yeast extracts and emulsifiers Bread, baked goods and crisp breads Sugars Rice and rice products Ethnic sauces Cooked meats Teas & Ovaltine Animal feed Clothing and soft furnishing

The Challenge 18 No common processes or products 46 different legal jurisdictions 30 different company cultures

Standards Generic policies & business principles No universal standards No ‘Operating Manual’ Chaos? Anarchy? 19

Managing Risk 20  Accountable director  Responsible senior manager  Businesses responsible for assessing the risks  Businesses responsible for managing the risks

Independent Audits 21  Local auditors  Local legal standards  Local norms  Data verification

Audit Findings 22  Legal / Risk / Data  Red / Amber / Green  Closeouts at sites and corporately  Follow up 1 year later  Appointing a Programme Manager  ‘Helping companies to remember’

Improvement plans 23  Each company has robust safety improvement plan  Reviewed by ABF  Tracked closure of material issues

Sharing Knowledge 24  Annual meeting of senior safety professionals  Three a year for our Chinese operations  Sharing audit findings with sister sites  Safety alerts  ABF and operating companies

Strong Emphasis on . . . 25  Accountability in subsidiary operating companies  Freedom to operate and deliver the end results  Working within local laws and standards  Sharing knowledge  Audits to check actual standards  Clear improvement plans