by Derek Doherty Operations Director

1. Presentation 4th December 2013 by Derek Doherty Operations Director

2. CompanyBackground • Rich Sauces was founded in 1985 by Trevor Kells • The business is privately owned • We manufacture a broad range of the highest quality mayonnaise, sauces, dressings and bouillons • Our factory is located in Newtownards • We supply customers in UK, Ireland, USA, Middle East & Europe

3. “Every solution breeds new problems” Arthur Bloch Author, Murphy‘s Law

4. Do we need an Environmental Policy? • Why does an SME need to have an environmental policy when we have very little waste? • We only have a few pallets of compacted waste going to landfill every 4-5 weeks • We attended a seminar in 2007 which highlighted the need to look at waste streams entering the factory and the impact this had on waste internally and externally • Although at this stage we had no written policy we began our environmental journey

5. Key Factors in our Policy We assessed our energy and waste streams: • Water – mains water • Electricity – lighting / refrigeration • Dry Waste – paper / cardboard / plastic / wood • Wet Waste – wash water / waste product / effluent • Train Staff – buy in and accountability

6. Water • Meter and measure water volumes • Reduce hose dimensions / attach guns to hoses, for example: 1” hose = 60lpm x 12hrs = 43,200L ¾” hose = 40lpm x 12hrs =28,800L ½” hose = 25lpm x 12hrs =18,800L • The operatives complained about reduced water pressure and increased wash down time. We stated to operatives that this was are new policy and it will take longer • Reduce rinse cycles for CIP system (subsequent impact on hygiene results) • Staff awareness - turn off taps / never leave hoses running / attach guns to hoses at all times

7. Electricity • Measure where the electricity is going • Explore market tariffs – are we on the right tariff • Staff training: turn off lights, installation of PIR sensors for offices and factory, and make people responsible for checking • Power factor correction • Refrigeration – update to inverter pack system • Change lighting to energy efficient were practical – we have adopted a change as they blow policy • Inverters for motors over 2.2kw Example Outside security lights 22 x 400w x 10hours = £4818 per annum Change to 125w led 22 x 125w x 10hours = £1505

8. Dry Waste How do we separate our waste which is currently going to compactor/landfill? • Cardboard - 7 Tonne per annum • Plastic – ½ Tonne • Metal – 2 Tonne • Secondary plastic – 1 Tonne • General waste – 8 Tonne The benefit from separating this waste is that we now have an income from this waste stream, we have reduced our landfill costs by 50%

9. Wet Waste / Effluent • Meter the WTP and assess overall volume • What can we take out at source – start up and final production 300-500lpw - this is recycled by a 3rd party for bio-diesel Example: • 2008 WTP cost £53,000 per annum • Investment £65,000 • Target figure £30,000 • Payback 34 months • Review annually to improve • 2014 approx spend £22,000 Possibilities to reduce this further: • Anaerobic digestion / de-watering system / composting

10. How Stem Continue to Add Value • After all this hard work the company can consider itself to be Environmental experts…or so we thought. • Stem contacted Rich Sauces in December 2012 to assess our EMS and conduct a free audit with a view to completing ISO 14001 • We soon realised that although we were committed on the practical aspects we had no written policy with no real targets or aspirations

11. How Stem Continue to Add Value • With Stem’s help we started to build an Environmental Management System which would compliment our previous endeavours. • We achieved our accreditation on 1st August 2013, 8 months after being introduced to Stem. • We have benefited from their experience and networking forums which has allowed us to explore other revenue streams whilst meeting our targets and obligations. • By using the sustainable plan which Stem have provided we will continue to learn and develop our Environmental strategy