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CORPORATE SOCIAL RESPONSIBILITY REPORT

  1. INTRODUCTION

 

With an olive-growing history dating back to 1780, our company takes its name from the family castle perched on a hill above the town of Canena, in the province of Jaén (Andalusia), very close to the cities of Úbeda and Baeza, both of which are declared World Heritage Sites, magnificent examples of the cultural essence of Andalusia.

Our organization handles every stage in the value chain of our products, from the scrupulous care of the olive trees to the moment the oil reaches its point of sale in over 50 countries around the world. At Castillo de Canena we personally control the entire production process. It is this commitment, among other things, that makes us stand out from nearly all our competitors.

Castillo de Canena is a family-run Business Group that has been enriched by the entry of new generations into the companies that make up the group.  The rapid evolution of our sector has led us to adapt quickly to changes, anticipating many of them thanks to a significant investment in innovation, one of our principle corporate priorities.

  1. THE “CASTILLO DE CANENA” FAMILY OF COMPANIES 

These are the four companies that make up the Group. Each one of them is responsible for the management of one aspect of the production and sale of our olive oils.

  • Cortijo Guadiana, S.L. 

Olive oil and the growing of olive trees has been the backbone of our culture and our economy for the last 3000 years, and the province of Jaén is the center of world production. Our olive groves are nestled in the Valley of the Upper Guadalquivir, between the Mountains of Cazorla and Magina. The family property is made up of beautiful irrigated lands from which we collect the olives that become highest quality extra virgin olive oil, classical varieties such as Picual, Arbequina and Royal.

One of the keys to the excellence of our olive oils is that we collect the olives at their moment of peak ripeness, and we press mostly early EVOOs. Each year we test different sections of the land in order to determine from exactly which groves and on which days we will achieve the finest juices, the elementary point of departure to create a magnificent final product.

The olives, which are collected mechanically, are transported to the oil-mill within a maximum window of three hours.  There they are cold-pressed (always under 20ºC) with great care, using the most advanced and modern machinery.

  • Cortijo La Loma, S.L. 

Our oil-mill is certified by the BRC, IFS, Andalusia Certificate of Quality and 9.001.

This is an industrial oil-mill that, since its founding in 1998, has achieved much recognition within the Province; more than 350 olive-harvesters make use of it.  Its physical plant makes up over 52,000m2 within the municipality of Baeza. This is a company that stands out for its ongoing investment in machinery and equipment, seeking to best differentiate between the fruits it receives, to improve the average quality of the oils produced, to increase yield and improve industrial processes, to correctly store the juices extracted and sell them in such a way that they achieve the greatest value possible for the olive-harvester, while promoting a culture of transparency and professional management of oil production.

  • Castillo de Canena Olive Juice, S.L. 

Castillo de Canena Olive Juice is the company responsible for the sale of bottles of our highest quality extra virgin olive oils. With offices in Madrid and Baeza, it has 14 employees, charged principally with Sales, Marketing and Management. We presently have a broad portfolio that includes our “Family Reserve” of both Picual and Arbequina varieties, the limited edition “First Day of Harvest”, and a whole line of products grouped under the title “21st Century Oils” which include “Royal Early Harvest”, “Horizontal Tasting”, “Oak Smoked Arbequina”, “Biodynamic Arbequina and Picual”, “Arbequina&Co.” and “Arbequina&World”.  As the entity charged with putting the final product on the market and promoting the brand, Castillo de Canena Olive Juice is the member of the Group with the greatest brand name recognition.

Within the compound of the industrial oil-mill Cortijo de la Loma, S.L., Castillo de Canena Olive Juice, S.L. has a small oil-press of its own, with two independent pressing lines, equipped with the most modern and innovative machinery. Among other advances, this installation maintains the cold chain throughout the entire production process.

  • Castillo de Canena, S.L. 

Castillo de Canena S.L. is the holding company of the Vañó family, which owns the majority of shares of the three previous companies.  It also is responsible for promoting and managing the new line of “Castillo de Canena oleo-gastro-tourism experiences”.  These are oriented to offer complete, unique and personalized experiences for persons interested in the world of olive oil.  The experiences are complete in the sense that they include contact with the whole production process, from visits to the olive groves to pairings at the table, including the whole industrial and commercial process.  They are unique in the sense that very few companies in this sector control every stage of the production process, and even fewer are set in historical monuments as attractive as the Castle of Canena or the Conde de Guadiana Cortijo (Plantation house) located on our lands. The experiences are personalized because, while we do offer set packs for visitors, most visits are “tailor-made” according to the needs and preferences of our guests.

  • ORGANIZATION

 

What follows is an outline of the organization, by company:

    • Cortijo de Guadiana:

    ORGANIGRAMA_CORTIJO_GUADIANA_SL copia

    • Cortijo de la Loma:

    ORGANIGRAMA_CORTIJO_LA_LOMA_SL copia

    • Castillo de Canena Olive Juice:

    ORGANIGRAMA_CDC_OLIVE_JUICE_SL copia (1)

    • Castillo de Canena:

    ORGANIGRAMA_CDC_SL copia

  •  

 

 

    1. MANAGEMENT COMMITMENT

    With this Corporate Social Responsibility Report, which has been drawn up in conjunction with various mission statements such as our Corporate Credo and our CSR Policy, we hope to demonstrate our firm commitment to economic, social and environmental sustainability.

    The organization is environmentally conscious, and for this reason aims to maximize the productive process using clean and efficient technologies and taking maximum advantage of resources. Likewise it makes interpersonal relationships a priority, both internally and externally, working to continually improve relations with all the relevant stakeholders.

    1. PURPOSE AND SCOPE OF THIS REPORT

     

    This report fulfills the requirement established in the regulation SGE21 regarding the release of a sustainability report. It will be thoroughly reviewed by management.

    The scope of the report includes all the companies that make up the Group.

    To address any questions that may arise in the interpretation of this report, or for more information, our organization may be reached at: rsc@castillodecanena.com

    1. CHARACTERISTICS OF THIS REPORT

     

    The team of individuals that prepared this report is made up of members of the CSR working group of the Group, as well as members of the CSR committee and the General Management. This varied and multidisciplinary team includes representatives of the different departments and levels of the organization, thereby guaranteeing a deep understanding of the organization from various perspectives.

    This report does not follow the standard outline for CSR reports, but rather has been written from start to finish by the organization in order to better reflect its specificity. It has been prepared conscientiously, starting with a process of identifying to whom the report is addressed (our stakeholders), determining the most relevant matters, and coming to a consensus on the most appropriate way to communicate this information (structure and format of the report).

    Outside consultants have been included in the team, and have collaborated in the preparation of this report by offering a specialized outside perspective. The work of the consultants has served as complement to that of the organization, resulting in a realistic and professional final document.

    Thus this report is not only a mechanism for communication outside the company; the process of preparing it has led us to interact and share information between different departments and people, each of whom has provided different points of view, making the process a valuable tool for internal dialogue as well.

    1. A KEY CONCERN: TRANSPARENCY

     

    We are fully aware that this report will be read by stakeholders affected by the activity of our organization, and that those who read this report will be more or less familiar with this activity. We believe firmly in transparency, and we know that the credibility of future sustainability reports depends upon the credibility of this, our first one. This is the reason for which we have worked with great intensity on this document, making the effort to include (in the name of transparency) information that rather than damage the image of our organization or contradict the strategy of the Group will rather help to transmit our organization’s commitment to society, and how these commitments are borne out.

    In this regard, the following observations:

    • As indicated in the regulation that applies to this report, the Organization has made its Annual Accounts public. To consult these, one must simply access the Business Registry. That said, if any stakeholder wishes to consult these accounts, it may contact the organization at rsc@castillodecanena and the requested information will be provided.
    • With respect to investors, the guiding principles of transparency, loyalty and sustainable creation of value have been followed at all times. There is a methodology (which has been correctly applied) to inform shareholders.
    • With respect to transparency in the community, the Organization has provided channels of communication and cooperation with stakeholders.
    1. MISSION STATEMENT

     

    The organization has three key documents (all approved by the management) that define its direction in terms of corporate social responsibility:

    The group also has other policies (which do not infringe upon these) such as the Quality Policy of the oil-mill.

    1. STAKEHOLDERS AND MECHANISMS FOR DIALOGUE

    8.1. Stakeholders

    The following stakeholders have been identified:

    • Clients
    • Sales platforms/Exporters
    • Workers
    • Suppliers
    • Administration
    • Competitors
    • Sponsored parties
    • Sponsors / Brand image
    • Society as a whole
    • Research and Development collaborators
    • Strategic alliances
    • Final consumer of our oil

    8.2. Channels for communication

    In order to facilitate dialogue and communication with these stakeholders, various channels of communication and information have been established. These mechanisms are used to learn of stakeholder needs and expectations as well as to transmit any other necessary communication:

    • Interviews
    • Web page
    • CSR email ( rsc@castillodecanena.com )
    • Meetings
    • Telephone
    • Questionnaires
    • Social networks
    • Periodic satisfaction surveys (digital)
    • Survey on labor environment
    • Suggestions box
    1. SUSTAINABILITY INDICATORS

    This section highlights the aspects and indicators that reflect the significant social, environmental and economic impacts of the organization, impacts that may influence how stakeholders evaluate the organization.

Aspect of the system Indicator 2018
Study of needs and expectations Non-Compliant for failure to fulfill needs and expectations  (>2) 0
Study of internal and external issues in the organization (SWOT analysis) and assessment of risks Non-Compliant for issues detected that had not been identified

(>2)

0
Actions for confronting risks Non-Compliant for poor risk management

(>2)

0
Review and fulfillment of the contents of corporate documents:

–       CSR policy

–       Corporate Credo

–       Anti-corruption policy

No existing complaints or memos regarding failure to fulfill standards established in these documents 0
Public information

–          Environmental efforts

–          Financial information

–          Non-financial information

Public information 100% accesible
Climate Study Technicians: Results > 3.5 3.8
Operators: Results > 3.5 3.7
Client satisfaction Results greater than 3.5 See satisfaction study
Number of complaints filed, per company within the group (≤2). 1
Management of suppliers Number of suppliers that reject our CSR demands 0
Number of payment-related incidents resulting in complaints by suppliers 0
Follow-up on sponsorships and alliances Acceptable results, according to management

(Yes/No)

YES
To charitable organizations 6.000 euros 6,370.84 euros*
To civil society associations

6.000 euros

4,949.00 euros*
To alliances and collaborations 2.000 euros 960.00 euros*
CSR Committee meetings Address all the sections of the regulation Pending notes from second meeting
Training Effective training plan in the system review Pending system review
Impact and social impact Increase in number of significant impacts Insufficient data to determine trends (first year of study)
EAA Non-Compliant for detection of environmental issues that had not been identified. Decreasing trend. Insufficient data to determine trends (first year of study)
Follow up on efforts:

–          Ecoembes

–          SIGFITOS

–          Resource consumption

–          Other consumption

–          Waste generation

Non-Compliant for problems with environmental follow-up 0
Decreasing trend in relative consumption (barring outside causes beyond the control of the organization) Pending data
Legal fulfillment and norms Non-Compliant for detection of regulations either not identified or not fulfilled (>2) 0
Review of environmental emergencies and controls Number of environmental emergencies (>2 año) 0
Life-work balance measures Non-Compliant in the application of plan (>2) 0
Objectives % fulfillment of objectives (75%) Approved
Management of subsidies and public monies 100% subsidies according to internal criteria of the organization (transparency and honesty) 100%
Systemic review At least two opportunities for improvement Pending
Internal audit –          Closure of 75% of the Non-Compliance of the AI

–          At least two opportunities for improvement

– 100%

– 15

Various communications Execution of 100% of the communication plan Pending
Ongoing management of:

–          Human rights

–          Equality and diversity

–          Responsible restructuring

–          Publicity and marketing

–          Access to products/services

–          Transparency

–          Competence

–          Ethical conduct and anti-bribery

–          Responsible fiscal reporting

Non-Compliant for follow-up problems (1) 0
Information for investors Fulfillment of plan regarding information for investors 100% Fulfilled
Awareness-raising

–          Internal

–          External (oleo-tourism)

–          At least one awareness raising activity each year

–          Discuss measures in at least 50% of the oleo-gastro-touristic activities

Pending (planned for end of this year)

100% since May 2018.

Responsible Human Resources management 100% of the internal Human Resources measures are responsible (according to committee evaluation) 100%
Responsible R+D+i 100% of the R+D+i projects apply CSR criteria 100%
Disagreements Less than 2 failures to uphold CSR per year 0
Political issues (anti-corruption) Contribution to political parties (euros) 0 euros
Unfair competition Number of acts against free competition 0
Energy efficiency kW consumed per Kg of olives pressed 0,03
Repurposing of biomass Guadiana: % of biomass generated that is repurposed (95%) 100%

*Data as of May 2018.

9.1. Environmental Indicators

The activities carried out by the Castillo de Canena group are oriented to minimize environmental impact; we consider this one of the parameters that defines the quality of our oils.

We will here innumerate the resources invested in various processes in order to better plan the measures to be taken to reduce the impact and to improve the efficiency of these processes.

The consumption of electricity on our property in 2017 was 3,086,450 kWh, as there was very little rainfall and the irrigation system had to be activated periodically.  In that same year, our total production was of 9,380,356 kg.  In order to improve energy efficiency and care for the environment, the system will be made completely automatic (water pressure measurements, probes, etc.)

The water we use is provided by the Hydrographic Confederation of the Gualdalquivir which grants 1,500 m3/hectare to our property. This falls far below the needs of the olive trees, which due to evaporation and transpiration this year (2017) required approximately 2400 m3/ha. The total water consumed on the property is 2,235,000 m3.

With respect to renewable energy sources, in 2017 we generated 306,148 kW using solar panels. Our goal in 2018 is to install photovoltaic panels of 693 kWp on a surface of 15,000m2, allowing us to pump captured rainwater for irrigation purposes. We estimate this will reduce our energy expenses by 80%.

All the waste generated from pruning is chipped and taken to the electricity generating plant Valoriza Energía in Linares-Baeza to produce clean energy with a “zero sum” impact, as it does not increase atmospheric CO2 levels.  No pruning wastes are burned. During 2017 we generated 1,486,700 kg of biomass, a quantity that will increase annually as the trees get larger.

The oil-mill uses electricity in various phases of production (crushing, mixing, horizontal and vertical centrifuge). The total weight of olives processed in the Cortijo de la Loma oil-mill in 2017 was 26,063,180 kg, with an associated energy use of 829,851 kWh.  In the course of this industrial activity a total of 2,866,950 kg of olive waste (pits) was generated. A percentage of the biomass produced in the mill is used; our furnace is 100% fueled by this sub-product.

The olives are passed through a cleaning device that clears them of stems and leaves. This waste is repurposed by the olive-harvesters, who take it with them on site.

The water used in the vertical centrifuge and in the washing of olives, as well as the water used to clean the building and equipment comes to a total of 8,909 m3. As an efficiency measure, we are studying the possibility of channeling rainwater from the roof of the mill in order to reuse it, always upholding relevant regulations on the potabilization of water.

The cardboard used to transport our bottles are recycled, and 100% of our paper waste is taken to the company Resur in Baeza to be recycled.

On our property we have undertaken an ambitious reforestation plan, using native species in order to encourage biodiversity, the creation of small ecosystems, and a habitat that enriches the food web and increases the ‘carbon sink effect’ on greenhouse gases.

Our Group’s Carbon Footprint and Water Footprint have been certified, and we hold the EPD declaration.  This demonstrates our firm belief in the importance of environmental protection for us. We must not forget that we are a Group closely bound to the Earth, and this connection makes us especially careful with the environment in which we work.

9.2. Financial Indicators

Below we offer the most relevant financial indicators (Fig. 1) and fulfilled fiscal obligations (Fig. 2) regarding the Castillo de Canena Group in the last full fiscal year, 2017:

 

MAJOR HEADINGS

 

AGGREGATE VALUE 2017

 

TOTAL BALANCE

 

38,014,072.80 €

 

IN-HOUSE RESOURCES

 

19,941,272.48 €

 

GROSS VALUE OF FIXED ASSETS

 

26,358,329.00 €

 

BILLING

 

27,007,304.58 €

 

EBITDA

 

5,121,101.03 €

 

HUMAN CAPITAL

 

82 *

Fig. 1º Castillo de Canena Economic Indicators

* Number of persons

TAXATION IN 2017 FISCAL YEAR  

   
 

CORPORATION TAX

 

854,233.97

 

VALUE ADDED TAX (VAT)

 

642,260.88

EARNED INCOME TAX

 

 

 

56,587.87

PROPERTY TAX  

44,254.36

 

TAX ON VALUE OF ELECTRIC ENERGY PRODUCTION (MOD. 583)

 

 

 

9,739.64

 

TAX ON CHILD CARE SERVICE

 

3,101.00

 

VEHICLE TAX

 

1,718.46

 

TAX ON HUNTING AND GRAZING LAND

 

1,304.99

 

TOTAL

 

1,613,201.17

Fig. 2º Taxation for 2018 Fiscal Year, Castillo de Canena Group

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