Grupo Osborne, S.A. and Subsidiaries · 2019-11-27 · Federation of Accountants (IFAC)...
Transcript of Grupo Osborne, S.A. and Subsidiaries · 2019-11-27 · Federation of Accountants (IFAC)...
Grupo Osborne, S.A. and
Subsidiaries
Non-Financial Information Statement for the financial year ended 31 January 2019
together with the Independent Assurance Report
Deloitte, S.L. Gonzalo Jiménez de Quesada, 2 Torre Sevilla 41092 Seville Spain Tel:+34 954 48 93 00 Fax: +34 954 48 93 10 www.deloitte.es
INDEPENDENT ASSURANCE REPORT ON THE NON-FINANCIAL INFORMATION
STATEMENT OF GRUPO OSBORNE, S.A. AND SUBSIDIARIES FOR THE FINANCIAL
YEAR ENDED 31 JANUARY 2019
To the shareholders of Grupo Osborne, S.A.:
In accordance with article 49 of the Commercial Code we have provided limited assurance on the
attached consolidated Non-Financial Information Statement (“NFIS”) corresponding to the financial year
ended 31 January 2019, of Grupo Osborne, S.A. and subsidiaries (the “Company” or “Osborne”), which
forms part of Osborne's Consolidated Management Report.
The content of the NFIS includes information in addition to that required by current mercantile legislation
regarding non-financial information that has not been the subject of our assurance work. In this regard,
our engagement has been limited exclusively to the assurance of the Information identified in the section
“Table of contents required by Law 11/2018” included in the NFIS.
Directors' responsibilities
The preparation of the NFIS, as well as its content, is the responsibility of Osborne's directors. The NFIS
has been prepared in accordance with the contents included in the mercantile legislation in force and
following the selected Sustainability Reporting Standards of Global Reporting Initiative (GRI standards),
as well as those other criteria described in accordance with what is mentioned for each subject in the
section “Table of contents required by Law 11/2018” of the NFIS.
This responsibility also includes the design, implementation and maintenance of the internal control that
is deemed necessary to allow the NFIS to be free from material misstatement, whether due to fraud or
error.
Osborne directors are also responsible for defining, implementing, adapting and maintaining the
management systems from which the information necessary for the preparation of the NFIS is obtained.
Our independence and quality control
We have complied with the requirements regarding independence and others of the Code of Ethics for
Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) that
is based on the fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.
Our firm applies the International Standard on Quality Control 1 (ISQC 1) and consequently maintains
a comprehensive quality control system that includes documented policies and procedures relating to
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
The work team has been made up of professionals with expertise in non-financial information reviews
and, specifically, in economic, social and environmental performance information.
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Our responsibility
Our responsibility is to express our conclusions in an independent limited assurance report based on the
engagement carried out, which relates exclusively to the financial year ended 31 January 2019.
We have conducted our review engagement in accordance with the requirements set out in the
International Standard on Assurance Engagements 3000 in force, “Assurance Engagements Other Than
Audits or Reviews of Historical Financial Information” (ISAE 3000 Revised) issued by the International
Federation of Accountants (IFAC) International Auditing and Assurance Standards Board (IAASB) and
with the Performance Guide on assurance engagements on the Non-Financial Information Statement
issued by the Spanish Institute of Registered Auditors.
In a limited assurance engagement, the procedures carried out vary in nature and timing, and are less
extensive than those performed in a reasonable assurance engagement and, therefore, the assurance
obtained is substantially less.
Our work has consisted in putting questions to Management, as well as to the different areas of Osborne
that have participated in the preparation of the NFIS, in the reviewing of the processes to collect and to
validate the Information presented in the NFIS and in the application of certain analytical procedures and
sample review testing described below:
Meetings with Osborne personnel to learn about the business model, the policies and management
approaches applied, the main risks related to these issues and to obtain the necessary information for
the external review.
Analysis of the scope, relevance and integrity of the contents included in the NFIS for the financial
year ended 31 January 2019 in terms of the materiality analysis carried out by Osborne and
described in the NFIS, taking into account the contents required by the mercantile legislation in force.
Analysis of the processes for compiling and validating the data presented in the NFIS for the financial
year ended 31 January 2019.
Review of Information on risks, policies and management approaches applied in relation to the
material aspects described in the NFIS for the financial year ended 31 January 2019.
Verification, through testing, on the basis of the selection of a sample, of the non-financial
information relating to the contents included in the NFIS for the financial year ended 31 January 2019
and its proper compilation from the data supplied by Osborne's information sources.
Obtaining a letter of representation from the Directors and Management.
Conclusion
Based on the assurance procedures carried out and on the evidence we have obtained, no aspect has
been revealed which would lead us to believe that the Osborne NFIS for the financial year ended
31 January 2019 has not been prepared, in all material respects, in accordance with the contents
included in the mercantile legislation in force and following the criteria of the selected GRI standards, as
well as those other criteria described in accordance with that mentioned for each subject in the section
“Table of contents required by Act 11/2018” of the NFIS.
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Use and distribution
This report has been prepared in response to the requirement established in the mercantile legislation in
force in Spain, and therefore may not be suitable for other purposes and jurisdictions.
DELOITTE, S.L.
SPANISH INSTITUTE OF AUDITORS
Leopoldo Parias Mora-Figueroa
2 May 2019
DELOITTE. S.L.
2019 Num 01/19/11312 30.00 EUR
CORPORATE SEAL ························································ Report on work other than account
auditing ························································
Grupo Osborne, S.A. and
Subsidiaries
Non-Financial Information Statement
for the financial year ended 31
January 2019
(*) This Non-Financial Information Statement is issued in a separate report. The information
included forms part of the management report on the consolidated financial statements of Grupo
Osborne, S.A. and subsidiaries for the financial year ended 31 January 2019, and is subject to the
same approval, submission and publication criteria as the management report.
CONTENTS
1. Business Model
2. Risk policy and management
3. Information on environmental issues
3.1. Environmental management 3.2. Energy and climate change 3.3. Circular economy and sustainable use of resources 3.4. Protection of biodiversity
4. Information on social and personnel issues
4.1. Employment 4.2. Organisation of work 4.3. Health and safety 4.4. Social relations 4.5. Training 4.6. Accessibility 4.7. Equality
5. Information on respect for human rights
6. Information relating to the fight against corruption and bribery and money laundering
7. Information on society
7.1. Commitments of the company to society 7.2. Subcontracting and suppliers 7.3. Consumers 7.4. Tax information
8. Table of contents required by Law 11/2018
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Introduction:
This report on the non-financial information statement is published in compliance with Law
11/2018, of 28 December, amending the Commercial Code, the Consolidated Text of the Spanish
Enterprise Act approved by Royal Legislative Decree 1/2010, of 2 July, and Law 22/2015, of
20 July, on Account Auditing, in relation to non-financial information and diversity.
This document refers to the activity of Osborne and its group of companies, engaged in the
production, marketing and distribution of beverages and food products.
For the preparation of this non-financial information statement, the Global Reporting Initiative's
(GRI) guide for the preparation of sustainability reports, an internationally recognised standard,
was used as the reporting standard, following the principles and content defined by the most
updated version of the guide, GRI Standards.
The context and regulation of the sector have also been taken into account, as well as the main
demands of the associates, sector trends and best practices to determine which non-financial aspects
are relevant for Osborne. In this way, the following have been identified as the main relevant
aspects:
− Compliance and business ethics
− Protection of the environment and biodiversity
− Energy efficiency and sustainable use of resources
− Attracting and retaining talent
− Health and safety at work
− Diversity and equality
− Commitment of the company to society
− Consumer health and safety
In response to these material aspects, the main lines of non-financial performance relating to
environmental, social, personnel and human rights issues, and those relating to the fight against
corruption and bribery are described below.
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1. Business Model
Osborne was founded in 1772, as a sherry producer and marketer and is one of the oldest
companies in Europe. Since then, the company has progressively diversified its activity and
Osborne currently operates in 3 major businesses within the Food and Beverage sector: liqueurs or
spirits, 100% Iberian acorn-fed ham, sherry wine and wine from Rioja and Castilla la Mancha.
All of the company's activity revolves around one purpose - “we create brands for people to enjoy
and share what is authentic” - and on values firmly rooted in the organisation - “authenticity,
mastery, commitment and visionary spirit”.
Historically, Osborne has had a clear international focus and currently exports its products to the
five continents, although it focuses the development efforts of its strategic brands in key markets,
such as for example: Spain, Germany, United Kingdom, United States, Mexico and China, in
addition to the Travel Retail channel.
Osborne's capabilities and consumption trends in these markets, specifically the premiumisation of
alcohol consumption, have geared the company's strategy towards strengthening its premium
brands that are leaders in their categories and towards the development of the spirits portfolio. This
strategy is supported by organisation that is functional, strategic, financial, operational, marketing,
sales and HR departments, among others, which serve all businesses and brands, characterised by
a culture of teamwork, a sense of belonging, a focus on results, innovation and customer service.
Currently, Osborne's main brands in the different segments in which it offers its products and
services boast a strong competitive position and extraordinary brand health. Therefore, for example,
Cinco Jotas is the world's leading brand of premium Iberian ham, Carlos I is the world's best-selling
solera gran reserva sherry brandy, and Nordés, a brand that is less than 10 years old, is the first gin
to retail for over 20 euros in the Spanish market. Osborne has developed a “brand building model”
that has proven to be successful, based on consumer knowledge, on hospitality as a strategic
channel, on digital marketing, on the ability to generate earned media and on taking advantage of
its own restaurants and wine tourism centres to create experiences.
Osborne has production plants and wineries where it produces its main products, 100% Iberian
acorn-fed ham, sherry brandy, gin, sherry wine, wines from Rioja and Castilla la Mancha, anise and
liqueurs. It also has various commercial models, its own commercial network in Spain, Brazil and
China and commercial partners in other markets.
In addition, Osborne builds brands in Spain for third parties, Brockman's Gin, Flor de Caña Rum
and 100 Pipers Scotch Whisky, among others, which allows it to complement its portfolio, make its
commercial structure more efficient and enhance its commercial capabilities and its strength in
reaching the market based on customer segmentation.
The company has restaurants and visitor centres that provide first-hand knowledge of the consumer
and their behaviour in the hotel and catering industry, and a tourism activity that receives more than
50,000 visitors a year in its most iconic locations and production centres.
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Lastly, the company is internationally known for owning the mythical image of the Osborne Bull,
a registered trademark of the company that has become an icon in the history of advertising.
In recent years, Osborne's prestige and notoriety have been reinforced by the activity of the
Osborne Foundation, dedicated to preserving and publicising Osborne's historical heritage and to
promoting training and entrepreneurship among young people.
2. Risk policy and management
Risk management at Osborne is a function of the Board of Directors that cannot be delegated,
as stated in its Articles of Association, promoted by the Board of Directors and Senior Management
and the responsibility of all the members of the Group, the main objective of which is to provide
reasonable assurance that the objectives established by the Group will be achieved.
In this context, Osborne has a Risk Management System (“RMS”), the objective of which is to
identify, analyse and mitigate risks with an overall view and which is based on a Risk Management
Policy proposed by the Audit and Compliance Committee and approved by the Board of Directors.
This System is structured into the following pillars:
● A map that includes the main risks, grouped into categories, together with an evaluation of
them according to their impact, probability and the Group's response to address them and,
where appropriate, an action plan with the measures necessary for this response to be
effective.
● Businesses and corporate areas participate under the model of the three lines of defence: risk
management units as a first line that report to the Risk Committee and the Ethics and
Compliance Committee that coordinates, supervises and ensures the smooth operation of the
RMS as a second line of defence. Internal Audit, as a third line, reports to the Board of
Directors, through its Audit and Compliance Committee, on the efficiency of the system.
● The approach to risks is integrated into management and decision-making processes.
● The RMS is based on the COSO II framework and adapted to Osborne's needs.
The main risks that may affect the achievement of the business objectives are classified and
grouped into the following categories:
1. Corporate Governance
2. Strategy and business environment
3. Human Resources
4. Operations
5. Information for decision-making
6. Finance
7. Technology and information systems
8. Ethics, regulatory compliance and criminal risks
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With regard to risks 1 to 7 above, the Risk Committee has the following functions:
● To coordinate, supervise and ensure the smooth operation of the RMS, establishing the
methodology, supervising and coordinating the work of risk managers and implementing
continuous improvement processes.
● To participate in the development of risk management strategy and policies.
● To define the values, roles and responsibilities, policies and organisational structure of the
RMS.
● To report to the Management Committee and the Board of Directors through the Audit and
Compliance Committee.
In addition, Osborne has a Compliance and Ethics Committee (“CEC”), which reports to the Board
of Directors through the Audit and Compliance Committee, as the superior body for the
guaranteeing of the Group's policies of ethical behaviour and regulatory compliance and, in
particular, as a body for criminal prevention, the functions and tools for action are as follows:
● Monitoring of Ethical Behaviour:
The CEC bases its role as guarantor of ethics in the Code of Ethics approved in 2015,
obtaining from that date the commitment of Osborne employees, managers and Directors to
comply with the Code of Ethics through the signing of a Statement of Compliance that must
be signed after the corresponding training session as well as the attached document of their
contract of incorporation to the Organisation. This code is a guide of basic principles that
describes the ethical values that must be shared by all Osborne employees and managers in
their day-to-day work, regardless of the position or post they hold. In addition, it draws up
some guidelines for the development of these values in external relations with the market,
internal relations within the organisation and, ultimately, in relations with the Company.
Since the beginning of this financial year, the commitment to comply with the Code of
Ethics has been expanded and is required by all types of suppliers as a necessary
requirement for their approval.
Finally, in the event of a breach of the values and ethical standards, the CEC has a
whistleblowing channel in place.
● Criminal Prevention Body:
Since 2015 Osborne has established a Criminal Prevention Model, approved by the Board of
Directors, around which, under the supervision of the CEC, the organisation revolves, as
well as management, monitoring and control measures to prevent crime or to significantly
reduce the risk of its occurrence. This model is based on the same pillars as the Osborne
Risk Management System described above.
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In addition, in order to develop this function of criminal prevention, the CEC has produced
i) a Manual on Crime Prevention and Response, which contains the procedures that structure
the control system; ii) a Criminal Compliance Policy, which includes and elaborates on the
crimes of the Criminal Code; iii) reporting mechanisms and internal verbal or written
communication addressed to the Secretary of the CEC as well as through the
Whistleblowing Channel and the Queries Channel to which every Osborne employee has
access and/or obligation to refer to when there are doubts about how to apply the Criminal
Compliance Policy and, finally, iv) continuous training sessions for employees.
In 2018, a total of 43 training sessions were given to the different departments of the
Company, thereby training up to 538 employees.
The Criminal Prevention model also revolves around the Criminal Risks Map, which the
CEC continuously updates and analyses, through short “ad-hoc” meetings, with personnel
from the different areas. For those risks that are identified as having greater probability and
impact and for the associated controls, the information is parameterised in a computer tool
that dynamically, flexibly and interactively monitors compliance with the control system.
● Supervision of Regulatory Compliance:
The CEC is responsible for overseeing, coordinating and supervising compliance risk
management policies.
In carrying out these functions, the CEC has participated in the preparation of various
policies aimed at ensuring regulatory compliance.
3. Information on environmental issues
3.1. Environmental management
Day to day, Osborne promotes a genuine commitment to sustainable business development that
maintains the highest degree of respect for and commitment to the environment, basing the
development of all our activities on the Precautionary Principle with the aim of preventing them
from causing negative impacts on the environment in which it operates.
Due to its nature, Osborne's activities that could have an impact on the environment cover the
following areas: agricultural activity, vineyards, production plants (wines, spirits, distillation and
meat), restaurants and offices in Spain and abroad.
In the agricultural field, Osborne promotes the reduction of the impacts that this activity could
cause on the environment in which it develops by limiting the number of pigs raised per hectare to
1 pig per 2 ha., keeping it well below the European Community recommendation on the matter,
15 pigs per ha. In this way, at Osborne we avoid the intensive use of the countryside and the
increase of deforestation/desertification in the southwest of the Iberian Peninsula, fostering the
natural environment and the sustainable use of natural resources.
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With regard to the activity of the vineyards, the environmental impact is low since it is limited to
the potential material damage that could be caused by the rupture of any of the three existing
reservoirs, which also have a classification of moderately significant material damage.
Regarding meat production, the most significant possible impacts on the environment could be
produced by discharges into water, emissions into the atmosphere and the production of waste. In
order to minimise these possible impacts, Osborne's main efforts included in the Industrial
Management Plans (mainly, the General Hygiene Plan and General Environment Plan) focus on the
management of our own water treatment plant, waste management with authorised handlers and, in
general, strict compliance with the Integrated Environmental Authorisation (IEA), as reflected in
the Inspection reports from the Authorities.
In addition, the meat production plant located in Jabugo, where 62% of the factory employees and
25% of the group's total work, has the “QSostenible” certification. This is the Spanish benchmark
standard with international validity and registration for the evaluation and certification of
sustainable building, evaluating criteria that cover management, use and maintenance, design,
materials used, together with the sustainability of local employment and fixation of the population
to the territory in rural environments.
Additionally, in compliance with Law 26/2007 on Environmental Responsibility, partially
developed by RD 2090/2008, Order ARM/1783/2011 establishing the order of priority and Order
APM/1040/2017 establishing the date from which the constitution of the obligatory financial
guarantee will be required: the plants producing alcohol and spirits at high alcohol content
(priority 1), have carried out, through an external company with reputable standing, an analysis of
identification of causes and dangers and evaluation of environmental risk by calculating the
Environmental Damage Index (EDI), which includes the inventory of the natural environment, and
the financial guarantee has also been calculated after the monetisation of possible damage to the
environment (MORA tool). In all cases, Osborne is completely exempt from providing a financial
guarantee.
In all our production plants Osborne promotes sustainable centres, constantly investing in the
improvement of facilities and equipment. In this sense, most of the Osborne production plants
(in which 82% of the total number of factory employees work) have implemented and certified an
Environmental Management System in accordance with the UNE-EN ISO 14001 Standard.
Integrated in these systems are the procedures for the identification, evaluation, prevention and
mitigation of significant risks and impacts, as well as for the verification and control of the
measures adopted in this regard. Each production plant also has an environmental officer.
Additionally, these same production plants have the BRC Global Standard for Food Safety and IFS
Food certifications, both designed to guarantee the highest level of customer protection, providing
organisations with a clear and consistent method to measure the safety of their products, which
provides confidence to consumers.
It should be noted that the different plants have sectoral prevention plans such as ECOVIDRIO,
ECOEMBES and AECOSAN, aimed at reducing waste, energy and additives.
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Along the same lines of this genuine commitment to sustainable business development, in recent
years Osborne has invested a total of 2,421 thousand euros in systems, equipment and installations
for the protection and improvement of the environment, mainly water treatment plants, installations
for the treatment of waste water and vinasse, refrigeration equipment for the stabilisation of wines,
sound insulation and ozonation systems. The expenses incurred by Osborne in 2018 in its
commitment to sustainable development amounted to 561 thousand euros.
Finally, the Osborne Group insures environmental risks through insurance policies taken out to
cover the economic impact in the event of large claims. The indemnity limit for these policies
amounts to 9 million Euros.
3.2. Energy and climate change
All of Osborne's production plants strictly comply with the requirements established by current
legislation and with the limits established in the corresponding authorisations in terms of emissions
and other forms of air pollution.
In the meat production plant, the plant with the highest energy consumption, Osborne has opted to
generate electricity by cogeneration with natural gas, the least polluting system after wind and
hydraulic and, therefore, much lower than coal, lignite, oil or nuclear systems.
In addition, Osborne is making a major effort to replace conventional lighting with LED lighting
systems as well as investing in new equipment with a better coefficient of performance and better
energy efficiency.
Thanks to these energy efficiency measures implemented both in production plants and in office
and restaurant facilities, energy consumption at the organisational level has been reduced by 18%
compared to the previous year:
Energy consumption (GJ) (*) 2018 2017 % Chg
Electricity 67,706 75,308 -10%
Natural Gas 25,868 45,382 -43%
Propane 377 276 37%
Petrol - 32 -100%
Gasoil 7,267 5,576 30%
Energy sold from cogeneration (101) (92) 10%
Direct energy consumption within the organisation 101,117 126,482 -20%
Fuel consumption of the leasing fleet 14,270 14,067 1%
Energy consumption outside of the organisation 14,270 14,067 1%
Total consumption of the organisation 115,387 140,549 -18%
*Note: Data relating to facilities in Spain
With regard to NOx, SOx or other similar emissions that affect air pollution, including sound, light
emissions, etc., produced in our plants, strict monitoring is carried out in line with current
regulations on emissions and pollution generated by the activity of these production plants.
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With regard to Greenhouse Gas emissions derived from the company's energy consumption, the
Carbon Footprint produced by the development of our activities has been calculated, taking into
account the three emission scopes defined by international standards: Scope 1 for the organisation's
direct emissions, Scope 2 for indirect emissions or emissions derived from the organisation's
electricity consumption, and Scope 3 for emissions generated by the organisation's activities but
that are not managed by Osborne, such as the fleet of leasing vehicles.
Emissions from fuel consumption
(tCO2 eq) (*) 2018 2017 % Chg
Scope 1
Natural Gas
Propane
Petrol
Gasoil
1,260
15
-
595
2,265
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2
454
Total direct emissions 1,870 2,732 -31%
Scope 2
Electricity 4,626 5,940
Total indirect emissions 4,626 5,940 -22%
Scope 3
Leasing fleet 1,034 1,019
Other indirect emissions 1,034 1,019 1%
Total Carbon Footprint 7,530 9,691 -22%
*Note: Data relating to facilities in Spain
In 2018, thanks to the application of the aforementioned efficiency measures, greenhouse gas
emissions were reduced by 22% at an organisational level. In this sense, it is a clear objective for
Osborne to establish medium- and long-term goals for voluntary reduction of greenhouse gas
emissions, together with the means for their implementation, so that there is a defined roadmap in
the business for the transition to a low-carbon economy.
3.3. Circular economy and sustainable use of resources
Being aware of the importance of using resources sustainably, and the role of the Circular Economy
as a driver to increase the efficiency of this use in the activities it develops. Osborne promotes
throughout its value chain the implementation of measures that help to reduce the impact it may
have on the environment.
Materials used
The main raw materials used are consumed in the production plants and correspond mainly to pigs,
grapes, wine and other raw materials used in the production of products. It also consumes
packaging materials (bottles, labels, packing materials, cork stoppers, etc.) and auxiliary materials
(chemical products).
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Materials used (tonnes) 2018 2017 % Chg
Raw materials (t) 45,999 65,041 -29%
Auxiliary materials (t) 556 670 -17%
Packing materials (t) 13,953 12,601 11%
Osborne commits to the use of all these raw materials and carries out a variety of measures aimed
at improving efficiency in their use: using pig fats and bones for animal feed and taking advantage
of by-products that are sent for distillation or for other purposes.
In meat plants, Osborne is committed to the reuse of one of the main raw materials, salt, achieving,
in the Jabugo plant alone, a 20% reduction in consumption compared to the previous year
(120,690 kg less). When it is not possible to reuse the salt, the services of an authorised handler
have been hired to remove it.
By-products generated by
purpose (t) (*) 2018 2017
By-product distillation purpose
By-product other purposes
1,718
22,501
962
56,733
Likewise, in our continuous effort to reduce the environmental impact and, consequently, to
increase confidence from the authorities, it should be noted that the level of environmental risk in
the treatment plants of all the meat production plants has been reduced to the Low level.
In the distillation plant, approximately 25% of the water consumption goes into a closed
refrigeration circuit to which only the water lost due to evaporation during its use is added.
Osborne's main suppliers in terms of cardboard/paper material (packaging) and glass (bottles) are
declared sustainable producers and therefore an estimated high percentage of these materials used
in our production processes are recycled.
Water consumption
93% of the water consumed in the production of our products comes from surface water and, of
these, almost all is consumed in the winemaking plant located in Castilla la Mancha and is destined
for sprinkler/drip irrigation in its more than 700 hectares dedicated to the vineyard. This catchment
is carried out by the Tajo Hydrographic Confederation (Castrejón Canal) and its consumption is
estimated at the maximum permitted catchment limit (2,000,000 m3).
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Osborne's water consumption data is:
Water consumption
(m3) (*) 2018 % 2017 % % Chg
Surface water 2,000,000 93% 2,000,000 91% 0%
Municipal 139,218 6% 174,427 8% -20%
Well 23,002 1% 20,119 1% 14%
Total 2,162,200 100% 2,194,546 100% -1%
*Note: Data relating to facilities in Spain
Waste management
In general, as mentioned above, most of our plants reuse or recycle almost all waste that is not
managed as waste. These materials, called by-products, usually have the following main
destinations:
● Sludge from the treatment plant is reused for a special type of fertiliser (Compost).
● Vinasse from distillation for organic fertilisers
● By-products derived from the production of wines and spirits intended for distillation
(e.g pomace, lees...) or its reprocessing
● Pig fats and bones for animal feed
● Used oil in Osborne restaurants that is entirely destined for recycling (11,093 Kg. in 2018)
As far as waste is concerned, a distinction can be made between:
● Hazardous Waste: all of which are managed by authorised handlers and are subject to
various final treatments
● Non-Hazardous Waste: managed, for the most part, by authorised handlers or municipal
services
With regard to discharges, most of the Osborne centres discharge into the public network, with the
exception of those plants that have water treatment plants. In all cases, these discharges are
controlled by the discharge authorisations and by the legislation applicable to these treatment
plants. In any case, all of them are controlled by analyses, none of them pose a substantial risk and
do not affect other contaminable sources. In meat plants, the risk assessed by the IEA (Integrated
Environmental Authorisation) for the treatment plants in the facilities has been reduced to the
“Low” level, this being the minimum possible value emitted by the corresponding environmental
authorities.
Total weight of waste generated
Waste generated (tonnes) (*) 2018 2017 % Chg
Non-hazardous waste 1,174 1,103 6%
Hazardous waste 7 9 -22%
Total 1,181 1,112 6%
* Note: Data relating to facilities in Spain
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3.4. Protection of biodiversity
Osborne's activities and operations do not cause significant impacts on the protected areas where
they are carried out, which are:
● The vineyards of Malpica del Tajo are considered to be modified natural ecosystems with
high value since, in addition to their economic function, they protect and increase the
diversity of flora and fauna, while at the same time carrying out soil protection work.
● The reservoirs I and III of the Castilla La Mancha Property have the category of “naturalised
reservoir”, due to the environmental value they generate.
In any case, Osborne maintains a high commitment to the preservation and protection of
biodiversity by collaborating in various projects, among which the following stand out:
● In the aforementioned location, we collaborate with the Lynx Project of Castilla La Mancha
for the preservation of this animal. Currently, two lynxes marked with radio beacons and
two other still unmarked kittens are known to be present on the property.
● INTERCONECTA Bioviden (Agricultural) Project, consisting of the search for
agroecological solutions through bio formulates to alleviate the problem of “Oak Decline” in
the Quercus Dehesa (Oak Forest). This project is aimed at reducing deforestation and
desertification, based on the endurance of the plant species of woody trunk that inhabit the
dehesas (oak forests) and traditional vineyards.
Likewise, as mentioned above, Osborne promotes the least possible environmental impact in its
agricultural activity, limiting the number of pigs per hectare to 1 pig per 2 ha., keeping it well
below the limit recommended by the European Community of 15 pigs per ha.
4. Information on social and personnel issues
Human resources management in the Osborne Group is carried out through common action criteria
that govern labour relations in the different Group companies and serve as a reference to define
their employment objectives, placing their employees at the centre of their decisions, striving for
them to carry out their work in the best possible working environment, guaranteeing their
well-being and implementing initiatives aimed at maintaining a work-life balance, attracting and
retaining the best talent and offering more and better opportunities.
4.1. Employment
The priority of the Osborne Group is the stability of its workforce in quality employment and its
professional and personal training and development, in its widest sense, developing all of its people
strategy in order to achieve these objectives.
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Average number of employees and distribution by gender, country and type of
employment contract
Country Men Women Total
Permanent - full time: Germany 1 1 2
USA 4 1 5
Spain 592 222 814
France 1 1 2
Portugal 2 3 5
Brazil 21 8 29
China 7 12 19
United Kingdom 1 - 1
Total 629 248 877
Permanent - part time: Spain 31 29 60
Total 31 29 60
Temporary - full time:
Spain 109 41 150
Total 109 41 150
Temporary - part time: Spain 1 5 6
Total 1 5 6
Total 770 323 1,093
With a firm commitment to the integration of those who have different abilities, Osborne has
18 workers with disabilities on its staff, who are fully integrated into its production process.
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Average number of employees and distribution by gender, country, age and job category
Group and Country
Men Women
General
total <30 30-50 >50 Total <30 30-50 >50 Total
Administration:
Germany - - - - - - - - -
China - - - - 3 - 3 3
Spain 2 11 28 41 4 30 15 49 90
Portugal - - - - - 1 2 3 3
Brazil 1 1 - 2 - 3 1 4 6
Administration Total: 3 12 28 43 4 37 18 59 102
Sales:
Germany - - - - - 1 - 1 1
China - 4 - 4 - 8 - 8 12
USA - 3 - 3 - 1 - 1 4
Spain 1 82 20 103 2 36 3 41 144
France - 1 - 1 - 1 - 1 2
United Kingdom - 1 - 1 - - - 1
Brazil 1 7 1 9 - 3 - 3 12
Portugal - 1 - 1 - - - - 1
Sales Total 2 99 21 122 2 50 3 55 177
Management:
Spain - 4 7 11 - - 1 1 12
Brazil - 1 - 1 - - - - 1
Management Total - 5 7 12 - - 1 1 13
Workers:
USA - 1 - 1 - - - - 1
Spain 71 268 138 477 34 97 41 172 649
Portugal - 1 - 1 - - - - 1
Brazil 1 7 1 9 - 1 - 1 10
Worker Total 72 277 139 488 34 98 41 173 661
Executives:
China - - 1 1 - - - - 1
Spain - 11 14 25 - 2 1 3 28
Germany - - 1 1 - - - - 1
Executives Total: - 11 16 27 - 2 1 3 30
Technicians and middle
management:
Spain 3 52 21 76 3 22 5 30 106
Brazil - 1 - 1 - - - - 1
China - 2 - 2 - 1 - 1 3
Technicians and middle
management Total 3 55 21 79 3 23 5 31 110
General Total 80 459 232 771 43 210 69 322 1,093
Lastly, in 2018 the Group entered into 214 permanent contracts, 202 of which were in Spain, of
which 33% were women and 67% were men. At the same time, 46 employment contracts were
terminated in 2018, of which 74% were men and 26% women.
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Dismissals by age, gender and category
Group Men Women
Total
General <30 30-50 >50 Total <30 30-50 >50 Total
Administration - 1 1 2 1 - - 1 3
Sales - 5 1 6 - 6 - 6 12 Management - - 2 2 - - - - 2
Workers 5 7 2 14 - - 5 5 19 Executives - 1 2 3 - - - - 3
Technicians and middle
management
-
7 -
7 - - - -
7
Total 5 21 8 34 1 6 5 12 46
Policy for the promotion of local recruitment
With an extensive presence in Spain and in continuous expansion abroad, in both areas Osborne
commits to the hiring of the local population of the surroundings as evidenced by the fact that,
regarding production plants all of them are located in provinces that are not capitals, a percentage
superior to 90% of the staff is a resident either in that same province, or in the neighbouring towns,
with specific recruitment campaigns being occasionally carried out in the nearest area.
Production Plant Local hiring
percentage
Cumbres Mayores Slaughterhouse (Cumbres Mayores, Huelva) 98%
El Tiro Winery (El Puerto de Santa María, Cádiz) 100%
Montecillo Winery (Fuenmayor, La Rioja) 96%
SRCJ Slaughterhouse (Jabugo, Huelva) 98%
Malpica Winery (Malpica de Tajo, Toledo) 100%
Anís del Mono Winery (Badalona, Barcelona) 100%
Tomelloso Distillery (Tomelloso, Ciudad Real) 91%
Remuneration
Based on an absolute guarantee for the minimum remuneration contained in the various applicable
Collective Bargaining Agreements (which in any case, and in the worst case scenario, establish
minimum wages 6% higher than the 2018 minimum wage), the Osborne Group opts in its
Remuneration Policy for a complete compensation package (fixed salary, variable salary and
various considerations in kind and social benefits, most of which are recognised for the entire
workforce) proposed by the Appointments and Remuneration Committee and subsequently
approved by the Board of Directors.
In order to preserve internal equity and be competitive with the external market, all the jobs in the
Organisation have been valued under the Willis Towers Watson Global Grading methodology and a
remuneration system has been established based on Salary Bands, defined by the level of
contribution of the position to the Organisation and that are reviewed annually to adapt them to the
current situation. This system allows the remunerations offered to Osborne employees to be
established objectively, avoiding the existence of differences due to of any kind of discriminatory
reasons.
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As part of this complete compensation package, the Organisation is committed to offering its
workers various benefits in kind and social benefits, most of which are recognised for the entire
workforce, including the following: company vehicle, flexible compensation package (restaurant
tickets, nursery ticket, health insurance and training), accident insurance, work-life balance
programme through Albenture, discounts on the purchase of Osborne products, scholarships for
employees and their children, Christmas and Summer cash gift with Osborne products,
development programmes, etc. Specific mention should be given to the forthcoming
implementation in 2019 of a Social Welfare Plan of a mixed nature (co-financed by the company
and the worker), implemented through a group insurance policy.
The objectivity of this system leads to minimising the possibility of a gender pay gap: either
because the personnel are subject to the remuneration conditions established in the Collective
Bargaining Agreement (obviously equal for men and women), or because in the case of workers
whose remuneration is established higher than that established in the Collective Bargaining
Agreement, the system of wage bands ensures the same remuneration for the same positions.
Apart from the guarantees described above, an analysis of the overall average remuneration of the
entire workforce, without taking into account the different positions, responsibilities and other
factors, would give us a salary gap of 19%:
Average € per year (*) Differential
Ratio Men Women
32,488 26,274 19% *Note: Data from Brazil and China not included
However, if we break down these same average salaries by category, it can be seen that, for
example, in the sales group, the salary gap is reduced to 7% or in the worker group to 4%.
In addition, if the age variable is incorporated (less than 30 years old, between 30 and 50 or over
50) there are two groups that have a positive wage gap (women with a higher salary than men),
specifically in the group of salespeople over 50 years old and in that of workers under 30. Without
reaching this positive level, with a minimum gap of less than 15%, the group of Managers and
Executives over 50 and of Technicians and Middle Managers and Workers between 30 and
50 years old stands out, with the latter standing at 3%.
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Average remuneration by age, gender and job category
Group Age
2018 2017
Men Women Men Women
Workers <30 18,273 21,170 17,740 18,300
>50 23,419 19,305 22,875 18,793
30-50 20,659 19,472 20,389 18,775
Administration <30 22,848 21,704 21,954 16,342
>50 58,611 39,850 52,921 38,284
30-50 40,207 29,793 37,015 29,662
Sales <30 31,116 24,665 - 28,356
>50 56,552 75,438 53,785 46,501
30-50 54,423 50,744 50,984 56,498
Technicians and middle management <30 26,362 17,754 31,344 26,325
>50 58,024 40,716 52,467 42,617
30-50 47,205 45,611 45,780 47,254
Senior Managers and Executives >50 218,703 191,583 207,170 226,559
30-50 140,668 97,972 116,884 110,834
*Note: Data from Brazil and China not included
Average remuneration of Directors and Senior Management
The average remuneration of the members of the Board of Directors of Osborne and its Senior
Management in regard to salaries, contributions to social welfare plans and per diems in 2018
amounted to 156 thousand euros, with the average remuneration of the eight members of the Board
of Directors who are non-executive directors amounting to 63 thousand euros for both the five men
and the three women. The average remuneration of the two members of the Board of Directors who
are executive directors and Senior Management amounts to 455 thousand euros.
4.2. Organisation of work
Aware that a work-life balance is a very important value nowadays, Osborne is committed to
a work culture that contributes to the balance of people, their well-being and motivation, convinced
of the direct impact that this situation has on the working climate and the Group's productivity.
Osborne offers an organisation of working time in accordance with this commitment to work-life
balance (straight shifts in the production plants, flexible entry and exit times in the central offices,
summer hours on certain dates, training and or meetings during working hours, organisation of the
enjoyment of annual holidays in two sections, one corporate, for all personnel, and another freely
available and work calendars adapted to each workplace); it has established various measures
aimed at facilitating the enjoyment of work-life balance and promoting the co-responsible exercise
of paternity/maternity.
In this work-life balance context, work is currently being done on a Digital Disconnection Policy
that guarantees respect for the rest and privacy of those workers equipped with computer work
tools.
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4.3. Health and safety
Osborne has undertaken multiple commitments and obligations in the area of health, safety and
welfare, which go beyond formal compliance with current legislation in the field. Therefore,
creating a true culture of health, safety and well-being, through its optimal integration, is an
unwavering principle.
In this context, a Health and Safety (H&S) Policy has been defined, the main objective of which is
to achieve a healthy and safe working environment, obtaining a level of H&S culture that makes us
achieve recognition as leaders in the different sectors in which the Group operates, assuming and
promoting a series of Basic Principles that must govern its actions in all the activities which are
defined in the H&S Policy itself.
Aware that it is just as important to have an H&S Policy among its employees in order to create an
authentic Preventive culture, the H&S Area has drawn up a “Health and Safety Policy”, as well as
the “Health and Safety Welcome Manual”, which is freely accessible through the Group's intranet,
and also the video Bienvenid@ Seguridad y Salud (Welcome to Health and Safety). In 2018,
22 specific training courses on Health and Safety were given.
H&S Working Conditions
Osborne has a H&S Management System, aligned with the corporate culture, which is in the
certification phase through the International Standard ISO 45001:2018 “Occupational Health and
Safety Management Systems”.
Essential collaborators in this area are the External Prevention Service, with which a series of
comprehensive contracts have been developed; and the internal structure through the Health, Safety
and Welfare Area, dependent on the Human Resources Department, in which trained and reputable
local technicians, are integrated into each of the workplaces, which provide support and advice to
the entire Organisation in this area.
Commitment to safeguarding H&S is not limited to own workers; Osborne, in its relations with
third parties (contractors and subcontractors), essential for the development of the business, only
collaborates with those who have previously obtained their approval as Group suppliers, having to
comply not only with the regulations in force, mainly concerning the Coordination of Business
Activities (CAE), but also signing a service provision agreement for a number of additional
obligations, the compliance of which is verified through a Digital Coordination Platform managed
by in-house personnel in the various workplaces.
As a result of this commitment, it can be stated, backed up by the Health Surveillance data offered
by the Prevention Service, that there is currently no job (in-house or subcontracted) in Osborne
with a high risk or occurrence in the development of any type of illness, with 0 being the work-
related illness ratio in this sense (no. of work-related illnesses x 200,000/no. of hours worked,
1,824).
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With regard to accidents and absenteeism, the information for 2018 is as follows:
Accident frequency
rate 2018 (*) Accidents AFR
Men
Women
26
9
19,53
16,65
Total 35 18,7
2018 Severity Index
(*)
Calendar days
of leave Severity index
Men
Women
1,449
472
1,09
0,88
Total 1,921 1,03
2018 Absenteeism
hours (*)
Calendar days
of leave
Men 81,152
Women 33,544
Total 114,696 * Note: data relating to the employees in Spain
2019 objectives related to the welfare of Osborne workers are the development of training in the
following subjects: nutrition and physical exercise, stress management and heart-healthy habits.
Procedures have also been initiated for the establishment of heart-healthy spaces in workplaces.
Finally, every year Osborne offers its employees the opportunity to undergo a general and specific
medical examination according to the position occupied.
4.4. Social relations
Considered a necessary element for the correct management of the business, the workers'
committees and union representation of the workers has the role that corresponds to them as
spokespersons for the expectations and concerns of the personnel, providing them with a favourable
climate for dialogue and understanding that benefits everyone.
From this perspective, the Group's Management promotes regular meetings with the different
employee representatives, beyond the strictly legal framework, minimising the development of any
ongoing conflict by achieving, whenever possible, a consensus that satisfies all involved.
As part of this spirit of collaboration, social agents play an important role in those cases in which
productive, organisational and, only rarely, economic circumstances require the adaptation of
business measures with a direct impact on the labour relations maintained, either to modify them or
to terminate them. In these cases, the company and the workers' representatives, with the direct
assistance of the unions on numerous occasions, set up joint working groups in order to adopt the
relevant agreement with the least social and economic impact on the workforce, all this an average
of one month before the implementation of the measure.
100% of the workforce that provides its services in Spain is subject to a Collective Bargaining
Agreement.
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4.5. Training
Osborne Group needs to have a qualified workforce adapted to the specific needs of each of its
business lines. To this end, it has a Training Programme divided into three main areas
(skills development, product training and technical and language training), with 2,910 hours of
training given to employees in 2018, according to the following breakdown:
Group
Training
Hours
Administration 636
Sales 138
Workers 147
Technicians and Middle Management 1,215
Senior Managers 230
Executives 544
Total Training Hours 2,910
These hours have resulted in 22 specific Health and Safety training courses and 88 courses in other
disciplines, benefiting 1,510 employees, with an average of 1.93 hours per employee.
In addition, in order to develop Internal Talent each year it is suggested that two workers take part
in a Postgraduate Management Programme, due to their personal and professional merits.
4.6. Accessibility
Osborne provides employment opportunities to employees with disabilities in order to promote the
integration of all people, also complying with current legislation on the incorporation of workers
with disabilities, Royal Legislative Decree 1/2013, General Law on Rights of Persons with
Disabilities and their Social Inclusion.
In 2018 Osborne continued to employ people with disabilities, with the collaboration of special
entities (A la par Foundation, Altius Foundation, Tomillo Foundation, ISOS Foundation, Opción 3,
among others), designing selection, hiring, development and promotion processes that guarantee
the non-discrimination of these people with different abilities, adapting, if necessary, the workplace
to them and ensuring that the workplaces are universally accessible work environments.
At this moment in time, Osborne employs 18 workers with disabilities.
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4.7. Equality
At Osborne there is a clear commitment and willingness to integrate equal treatment and
opportunities between men and women, as well as with workers with different abilities, as a basic
and cross-sectional principle in all areas of work and as a guiding principle of Human Resources
management for the adoption of measures in terms of hiring and selection of personnel
(transparent selection processes, objectivity and neutrality in internal promotion processes, search
for a balance between men and women). Also in terms of remuneration and salaries, in terms of
training (determining access parameters objectively and providing training within the workplace or
online), information and communication (use of neutral and non-discriminatory language in all
communication channels) and motivation, participation and awareness (through the releasing of the
Bienvenid@ a Osborne (Welcome to Osborne) video and the dissemination of the “Osborne Group
Code of Ethics”).
This commitment is demonstrated by the fact that throughout 2018 no complaint has been received
throughout the Organisation for an infringement regarding equal treatment among our workforce.
During 2018, Osborne developed an ambitious work plan in order to provide a single Equality Plan
for all the companies in the Group, regardless of whether or not it is compulsory due to the size of
the workforce and with the logical adaptations to the specific characteristics of each company, with
the intention of developing this Plan throughout 2019.
Description of the Company's sexual and gender-based harassment protocols
The development of human relations within Osborne under the strictest standards of respect,
education and tolerance, without exceptions of any kind, being a guiding principle, for years there
has been a policy of action regarding complaints of harassment in the workplace available to all
employees through the corporate intranet, its objective being to provide the means to deal with
complaints or claims that, where applicable, may be made by those workers who have been
subjected to harassment or mistreatment at work.
To this end, an effective, swift and operational investigation procedure has been established for any
complaint involving sexual harassment, gender-based harassment, harassment at work and/or
mistreatment in the workplace, guaranteeing in all cases the confidentiality and protection of the
identity of those affected, as well as of those who are involved in the process.
In 2018 only two complaints were made through this channel, and they were finally resolved
satisfactorily after joint mediation meetings between the complainant, the accused party and
members of the Human Resources Department, and the complaints were not ultimately formalised.
Integration and universal accessibility for people with disabilities
Osborne is dedicated to having a positive effect on people with disabilities in the communities in
which it operates through our social action, offering options and opportunities for our workers to
actively integrate into society.
In terms of the facilities and taking into account the unique design of many of them. Osborne
Group is constantly working on the elimination of any architectural barriers that might hinder
access to its facilities for people with disabilities, trying to remove barriers in its facilities, adapting
equipment and installations and including the appropriate signage on them. Applying this, likewise,
21
to the furnishings used within Osborne, which are being progressively updated to adapt them to the
environment, ensuring the maintenance or improvement of the universal accessibility of all spaces.
In addition, the Osborne Foundation has developed inclusive visits to the wineries by creating a
series of materials that allow people with visual disabilities or reduced mobility to enjoy a sensory
experience within the wineries. This new initiative is the result of collaboration with the ONCE
Foundation and the Caixa Foundation. Recently, during the International Tourism Fair, it received
the Gourmet Excellence 2018 Award for the Accessible Wine Tourism Project, becoming the first
Marco de Jerez winery to offer these experiences to this group. A way of making the business,
entrepreneurial and oenological culture more accessible, which has been a constant in the company
throughout its history and which now, thanks to this project, can serve as an inspiration to anyone.
5. Information on respect for human rights
Osborne has implemented measures that integrate respect for Human Rights, as set out in the
International Bill of Human Rights and in the Declaration of the International Labour Organisation,
in its business model, values and corporate culture, guaranteeing that all staff are aware of the
commitment that these Rights entail.
Respect for Human Rights at Osborne forms part of the company's ethical culture and the control
and monitoring of conduct that could constitute a crime of human trafficking, prostitution, sexual
exploitation and corruption of minors and a crime against the rights of foreign citizens, which are
managed by the Ethics and Compliance Committee through the functioning Criminal Prevention
Model.
Additionally, through the Supplier Approval Policy, revised in the 2018 financial year, this filter
has been expanded to include among the requirements for qualifying as an authorised supplier the
accreditation of certain aspects related to compliance with labour regulations, as well as compliance
with our Code of Ethics.
During 2018, the CEC has not received any complaint or detected any behaviour or action that
could qualify as non-compliance under the terms described that should be reported to the Audit and
Compliance Committee.
6. Information relating to the fight against corruption and bribery and money
laundering
The control and monitoring of conduct that could constitute crimes of corruption between
individuals, bribery and influence peddling are supervised and managed from the CEC through the
Criminal Prevention Model. In this context, the company's efforts have focused mainly on
prevention through training its employees on these criminal practices and those contrary to its Code
of Ethics.
In addition, in order to prevent any offer or receipt of gifts to obtain a business/contract or to be
treated favourably by third parties, a Gift Policy has been developed which establishes very strict
guidelines and criteria for the acceptance and offering of gifts applicable to the entire organisation.
22
In addition, the company has a special interest in preventing the crime of money laundering, which
is the object of prevention in accordance with its Criminal Prevention Model. In this sense and
according to Royal Decree-Law 11/2018 of 31 August, which amends Law 10/2010 of 28 April,
Osborne is in the process of: (i) appointing a representative to the Executive Service of
the Commission for the Prevention of Money Laundering and Monetary Offences (“SEPBLAC”)
and (ii) establishing an appropriate Internal Control Body (ICO).
Finally, as a preventive measure in the new Osborne Supplier Approval Policy, it requires
accreditation of compliance with ethical standards related to these aspects, including the observance
of our Code of Ethics.
During the year, the CEC has not received any complaint or detected any behaviour or action that
could qualify as non-compliance under the terms described that should be reported to the Audit and
Compliance Committee.
7. Information on society
7.1. Commitments of the company to society
Osborne Foundation
With the idea of continuing, redirecting and promoting the activity of the Osborne Group in
corporate social responsibility matters, the Osborne Foundation was established at the end of 2016
with the primary objective of bringing young people closer to the world of work through the
development of a series of actions that would allow for their education, training, motivation and
entrepreneurship. Subsequently, the conservation, exhibition, accessibility and improvement of the
artistic heritage treasured by the company throughout its almost 250 years of history was also
incorporated as a second foundational objective. Currently, Osborne contributes 75,000 euros to the
Foundation through donations and collaboration agreements.
In order to achieve its objective of promoting training and entrepreneurship among young people,
the Osborne Foundation has relied on other institutions with similar objectives since its inception,
such as: The Princesa de Girona Foundation, the Telefónica Foundation, the University of Seville
Research Foundation (FIUS), the Cádiz University Chair in Entrepreneurship, the Exit Foundation,
and the Santa María la Real Foundation, among others. Since its foundation up to now, there have
been a great number of varying actions carried out. With more than 500 young people who in one
way or another have benefited from these agreements, more than 174 publications related to the
activity of the Foundation, audiovisual media appearances, which have involved more than
40 million views and an advertising amount exceeding 800,000 euros (Source KantarMedia), it is
clear that the Foundation enjoys the recognition of institutions, associations and media. In 2018, the
Foundation received the national “SaludFestival” award in its honorary section for its commitment
to culture and, in addition, the national and international “2018 Gourmet Excellence” award for the
“Accessible Enotourism” project.
23
As for the second objective linked to the preservation, conservation, accessibility and exhibition of
the heritage of the Osborne family, the Foundation has created an exhibition space of more than
2,000 square metres known as the “Toro Gallery”, which receives thousands of visitors every year.
The museum stands on a winery built in 1849, refurbished for this use, where traditional materials
such as wood, stone and densely packed crushed rock have been restored for this new purpose.
Other activities carried out by the Foundation during the 2018 financial year have been:
● Collaboration with the University of Cádiz as a panel in the evaluation of the ATREBT 2018
awards, the objective of which is the search for talent and support for entrepreneurship
among young university students in the province of Cádiz.
● 1st Edition of the Coach project with the Exit Foundation (in Cádiz): a training and
employment event with the aim of improving the employability of young people in
vulnerable situations
● Participation in a charity catwalk in collaboration with Caritas to finance training projects
that facilitate the employability of young people at risk of social exclusion in the province of
Cádiz.
● Promotion of the culture collaborating in the 3rd Edition of the Artistic Event “Art Puerto”
in the town of el Puerto de Santa María.
● Participation together with the chair and entrepreneurs of the University of Cádiz in
TOROLAB, the first factory of innovative solutions based on university knowledge in the
province of Cádiz.
● Aid for the labour market integration of young people in the province of Cádiz at risk of
social exclusion through a training project in the hotel and catering sector, in collaboration
with the SAFA Foundation.
● Project for inclusive visits to the wineries mentioned in section 4.
Association and Sponsorship Actions
The Osborne Group has been collaborating for decades with a large number of associations with
different natures and purposes, as well as developing sponsorship initiatives that allow it to give
greater visibility to its brands and obtain a closeness with consumers.
The professional or sectorial associations have been and are a constant in the regular development
of the institutional relations of the business group.
Currently, Mr Ignacio Osborne, Chair of Osborne, is also Chair of the Spanish Spirits Federation
and Chair of the Leading Brands of Spain Forum, two important business associations that bring
together not only the most important companies in the beverage sector, but the main companies
linked to the management of Spanish Brands and their internationalisation. In the recent past, Mr
Ignacio Osborne was also the chair of the Family Business Institute and chair of the Spanish Wine
Federation. These and other associations linked to our business activity allow us to work in a
coordinated way to achieve the objectives of each of the different associations of which Osborne is
a member.
In addition, some of the members of the company's management committee belong to other
management bodies and governing boards of sectorial associations linked to vineyards, wineries,
dehesas (oak forests), the rearing of the Iberian pig or tourism. In the case of Cinco Jotas, as
Vice-president of AECERIBER (Spanish Association of Iberian Pig Breeders), it is also a member
of the Board of IBERAICE, ASICI, ARAPOR or ANICE Huelva (National Meat Processing
Industries Association of Spain) or of the Jabugo Denomination of Origin; it is also part of the
24
Denominations of Origin of Jerez and Rioja. It also forms part of the Tajo Irrigation Confederation
and has developed agreements with the universities of Huelva, Cordoba, Seville and Cádiz. We also
work in operative groups and projects associated with CSIC (Spanish National Research Council)
and INIA (National Institute for Agricultural and Food Research and Technology).
Other associative initiatives are also supported, such as Circulo Fortuny, a Spanish association
dedicated to the promotion and enhancement of Spanish brands linked to the luxury segment. This
initiative allows brands such as Cinco Jotas and the Old Osborne Wines category (VORS) to
interact with the media, contact national and international operators of this product category,
implement learning, develop studies, etc.
Finally, Osborne forms part of the Princesa de Girona Foundation as Trustees, one of the objectives
of which is to make the most of the talent of young people by providing them with appropriate
training and rewarding the most innovative initiatives. These goals are aligned and they produce
synergies with the goals of the Osborne Foundation. It is also a member of the Directors Club of the
Cajasol Foundation and of the Santa Cecilia Academy of Fine Arts.
There are many sponsorships developed by Osborne and its brands of a different nature depending
on the product and the market to which it is addressed. Other highlights include participation in
The 50 Best Restaurants, an annual event that awards the best restaurants in the world and is held in
different corners of the planet; the Basque Culinary Centre where Osborne invests, through its
5J brand, in sponsorship that allows the promotion of academic training in Iberian products and the
design of gastronomic challenges for students. This year Osborne was present on the menu of the
official dinner of the Oscar gala in Los Angeles through our brand Cinco Jotas and in the past
sponsoring the events Diálogos de Cocina (Kitchen Dialogues), Madrid Fusión and others that have
gastronomic themes. The Puerto de Santa María Fair and the Patio Festival (Fiesta de los Patios)
are also sponsored. Also in the festivities in honour of San Miguel, patron saint of Jabugo, an event
is held to cut ham for charitable purposes, where each year the entire proceeds are given to different
local associations.
In this sense, Osborne collaborates regularly with a great number of initiatives proposed to us by
the Local Councils where our production plants are located, with special emphasis on El Puerto de
Santa María and Jabugo, in which it carries out all kinds of cultural activities such as the Monkey
Week Festival or the Bahía Jazz Festival that it has been running together with the Department of
Culture of El Puerto for more than a decade, as well as the training of charitable ham cutters in
Jabugo.
Furthermore, throughout these years we have also sponsored sporting activities, offering our brands
and services to sporting events such as the Valderrama Golf Masters, the Open de España, the Open
de Andalucía and other tournaments organised by the European Tour in Spain.
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7.2. Subcontracting and suppliers
Regardless of the specific procedures established at the different plants, Osborne has a procedure
for the Approval and Evaluation of Suppliers, the purpose of which is to determine the validity of a
supplier in accordance with established requirements that evaluate the quality of the services
provided, economic capacity and solvency, the degree of compliance with the requirements
established by Osborne, already mentioned in previous sections, and with current and applicable
legislation, as well as its adherence to the Organisation's Code of Ethics and observance of other
relevant parameters in the area of Criminal Prevention.
7.3. Consumers
Osborne is very conscious and aware of the health of the consumer, collaborating actively with
various associations and organisations that advocate the responsible and moderate consumption of
alcohol. In particular, Osborne, as a member of the Spanish Spirits Federation and the Spanish
Wine Federation, is committed to their respective Self-regulation Codes aimed at ensuring
responsible consumption and suitable publicising of advertising campaigns.
As far as the meat sector is concerned, Osborne carries out a slow, hand-operated and controlled
curing process of our 100% Iberian acorn-fed ham that makes it toxoplasma-free, validated by a
research project that is in its final stage of development and verification, making it suitable, among
many other groups, for pregnant women. Likewise, a study carried out in collaboration with the
University of Huelva shows that our Iberian ham is heart-healthy.
Osborne also participates in a sectorial and national project to make embutidos healthier, consisting
of the reduction of salt and fat within them. This project is led by the Ministry of Health through
the Agency AECOSAN.
Measures for the health and safety of consumers
Osborne has defined in its Criminal Prevention Model the criminal risks derived from the crime of
fraud, that related to the market and consumers, crime related to public health and breaches related
to information and labelling of products and services, as well as those derived from breaches
related to marketing communications, establishing as usual the necessary policies and indicators in
its IT application.
Furthermore, the Code of Ethics, the Criminal Prevention Model and the Personal Data Processing
and Protection Policies include the necessary mechanisms to guarantee the privacy of Osborne
customers at the highest level, demonstrating with them a deep commitment to acting diligently in
this area and strictly complying with the new General Data Protection Regulations.
Finally, the new Osborne Supplier Approval Policy requires accreditation of compliance with
ethical standards related to these aspects, including the respect of our Code of Ethics.
26
Complaint systems, complaints received and their resolution
Osborne has its consumers and customers present in each of the production and marketing
processes of its products, as well as in its restaurants and visitor centres. To this end, it has a system
for dealing with complaints and grievances in order to improve any part in the process of the
production and marketing chain of its products, as well as to deal with possible requests,
complaints, grievances and suggestions from customers of our restaurants and visitor centres,
complying with a series of policies and ethical values as well as specific regulations in this area.
In the purely civil and administrative field, only six cases of non-compliance related to the
information and labelling of products and services have been dealt with, all for less than
10,000 Euros.
In addition, in order to prevent and respond to possible criminal breaches, the Criminal Prevention
Model includes and establishes specific controls to prevent the crime of fraud, crime related to the
market and consumers, and crime related to public health.
With regard to issues related to privacy and marketing communications, no breaches of this type or
reports of alleged crimes have been recorded during 2018.
7.4. Tax information
The purpose of Osborne's tax policy is to ensure compliance with the regulations applicable in all
the tax territories in which the Group operates, in line with the activity carried out in each of them.
At Group level, the detail, by country, of the corporate income tax expense, tax liabilities with the
tax authorities for this tax for the financial year, grants received, deductions applied in the financial
year in the aforementioned tax and the related pre-tax profits, is as follows:
Country
Thousands of euros
Corporate income
tax rate
Corporate income
tax expense Profit Before Tax
Corporate tax
deductions Grants received
Spain 3,196 3,645 16,629 285 341
United Kingdom - - - -
Portugal 12 58 1,080 - -
China - - 120 - -
Brazil 197 - (2,004) - -
USA - - 168 - -
Total 3,405 3,703 15,993 285 341
Rate Expenses
Real IT rates (Nominal rate in
Spain 25%) 21,2% 23,1%
27
8. Table of contents required by Law 11/2018
Contents of Law 11/2018 NFIS Standard used Page of the Report
Business Model
Description of the group's
business model
A brief description of the group's business model, including its business environment, organisation and structure, the markets in which it operates, its objectives and strategies, and the main factors and trends that may affect its future development.
GRI 102-2, GRI 102-4, GRI 102-6, GRI 102-7, GRI 102-15
Pag. 2-3
Information on environmental issues
Policies
Policies applied by the group, including the due diligence procedures applied to identify, assess, prevent and mitigate significant risks and impacts, and for verification and control, as well as the measures that have been adopted.
GRI 103-2, GRI 103-3 Pag. 5-7
Main risks
Main risks related to those issues linked to the group's activities, including, where relevant and appropriate, its commercial relations, products or services that may have negative effects in those areas, and how the group manages those risks, explaining the procedures used to identify and evaluate them in accordance with the national, European or international frames of reference for each field. This should include information on the impacts that have been identified, giving a breakdown of these impacts, in particular on the main risks in the short, medium and long term.
GRI 102-11, GRI 102-15 Pag. 3-7
General
− Effects of the company's activity on the environment, health and safety.
GRI 102-15, GRI 102-29 Pag. 5-7
− Environmental assessment or certification procedures,
GRI 102-11, GRI 102-29, GRI 102-30
Pag. 6
− Resources dedicated to the prevention of environmental risks.
GRI 102-29 Pag. 6-7
− Application of the precautionary principle. GRI 102-11 Pag. 5-7
− Provisions and guarantees for environmental risks.
GRI 307-1 Pag. 6-7
Pollution
Measures to prevent, reduce or repair carbon emissions that seriously affect the environment, taking into account any form of air pollution specific to an activity, including noise and light pollution.
GRI 103-2, GRI 302-4, GRI 302-5, GRI 305-5, GRI 305-7
Pag. 7-8
Circular Economy and
waste prevention and management
Measures for prevention, recycling, reuse, other forms of recovery and disposal of waste. Actions to combat food waste
GRI 103-2, GRI 301-1, GRI 301-2, GRI 301-3, GRI 303-3, GRI 306-1, GRI 306-2, GRI 306-3
Pag. 8-10
Sustainable use of resources
Water consumption and water supply according to local constraints
GRI 303-1 Pag. 9-10
Consumption of raw materials and measures taken to improve the efficiency of their use
GRI 301-1 Pag. 8-9
− Direct and indirect energy consumption, − Measures taken to improve energy efficiency. − Use of renewable energies.
GRI103-2. GRI 302-1, GRI 302-2, GRI 302-4, GRI 302-5
Pag. 7-8
28
Contents of Law 11/2018 NFIS Standard used Page of the Report
Climate Change
Greenhouse gas (GHG) emissions. GRI 305-1, 305-2, GRI 305-3
Pag. 7-8
Measures to adapt to Climate Change. GRI 102-15. GRI 103-2, GRI 201-2, GRI 305-5
Pag. 7-8
Reduction targets voluntarily set in the medium and long term to reduce GHG emissions and means implemented to that end.
GRI 103-2 Pag. 8
Protection of biodiversity
Measures to preserve or restore biodiversity. GRI 103-2, GRI 304-3 Pag. 11
Impacts caused by the activity. GRI 304-2 Pag. 11
Information on social and personnel issues
Policies
Policies applied by the group, including the due diligence procedures applied to identify, assess, prevent and mitigate significant risks and impacts, and for verification and control, as well as the measures that have been adopted.
GRI 103-2, GRI 103-3 Pag. 11-21
Main risks
Main risks related to those issues linked to the group's activities, including, where relevant and appropriate, its commercial relations, products or services that may have negative effects in those areas, and how the group manages those risks, explaining the procedures used to identify and evaluate them in accordance with the national, European or international frames of reference for each field. This should include information on the impacts that have been identified, giving a breakdown of these impacts, in particular on the main risks in the short, medium and long term.
GRI 102-11, GRI 102-15 Pag. 3-7, 11-21
Employment
− Total number and distribution of employees by gender, age, country and job classification.
GRI 102-7, GRI 102-8, GRI 401-1, GRI 405-1
Pag. 13
− Total number and distribution of employment contract types.
Pag. 12
− Average annual number of permanent, temporary and part-time contracts by gender, age and job classification.
Pag. 12
− Number of dismissals by gender, age and job classification.
Pag. 14
− Average remuneration by gender, age and job classification or equal value.
GRI 102-35, GRI 102-36. GRI 201-3, GRI 202-1, GRI 405-2
Pag. 16
− Wage Gap. Pag. 15
− Remuneration of equal or average jobs in the company.
Pag. 16
− Average remuneration of directors and senior managers, broken down by gender.
Pag. 16
− Work disconnection measures. GRI 103-2 Pag. 16
− Employees with disabilities. GRI 405-1 Pag. 12
Organisation of work
− Organisation of working time. GRI 102-8, GRI 103-2 Pag. 16
− Number of absence hours. GRI 403-2 Pag. 18
− Measures to facilitate a work-life balance. GRI 103-2 Pag. 16
Health and safety
− Health and safety conditions at work. GRI 103-2 Pag. 17
− Accident rate indicators broken down by gender.
GRI 403-2, GRI 403-3 Pag. 17-18
− Work-related illnesses. GRI 403-2, GRI 403-3 Pag. 17
29
Contents of Law 11/2018 NFIS Standard used Page of the Report
Social Relations
− Organisation of social dialogue. GRI 102-43, GRI 402-1, GRI 403-1
Pag. 18
− Percentage of employees covered by collective bargaining agreements.
GRI 102-41 Pag. 19
− Balance of collective agreements in the field of health and safety at work.
GRI 403-1, GRI 403-4 Pag. 18
Training − Training policies. GRI 103-2, GRI 404-2 Pag. 19
− Total hours of training by job categories. GRI 404-1 Pag. 19
Accessibility − Universal accessibility for people with
disabilities. GRI 103-2 Pag. 19
Equality
− Equality measures between men and women.
GRI 103-2
Pag. 20-21
− Equality plans. Pag. 20
− Measures to promote employment. Pag. 14, 22-23
− Protocols against sexual and gender-based harassment.
Pag. 20
− Universal accessibility for people with disabilities.
Pag. 19-20
− Anti-discrimination policy and diversity management.
GRI 103-2, GRI 406-1 Pag. 20
Information on respect for human rights
Policies
Policies applied by the group, including the due diligence procedures applied to identify, assess, prevent and mitigate significant risks and impacts, and for verification and control, as well as the measures that have been adopted.
GRI 103-2, GRI 103-3 GRI 412-2
Pag. 21
Main risks
Main risks related to those issues linked to the group's activities, including, where relevant and appropriate, its commercial relations, products or services that may have negative effects in those areas, and how the group manages those risks, explaining the procedures used to identify and evaluate them in accordance with the national, European or international frames of reference for each field. This should include information on the impacts that have been identified, giving a breakdown of these impacts, in particular on the main risks in the short, medium and long term.
GRI 102-11, GRI 102-15 Pag. 3-7, 21
Human Rights
− Application of due diligence procedures.
GRI 102-17, 103-2, GRI 419-1
Pag. 21
− Measures for the prevention and management of possible abuses.
− Complaints about human rights violations.
Pag. 21
Pag. 21
− Promotion and compliance with the provisions of the ILO.
Pag. 16,18 and 21
Information relating to the fight against corruption and bribery
Policies
Policies applied by the group, including the due diligence procedures applied to identify, assess, prevent and mitigate significant risks and impacts, and for verification and control, as well as the measures that have been adopted.
GRI 103-2, GRI 103-3, GRI 205-2
Pag. 3-5
30
Contents of Law 11/2018 NFIS Standard used Page of the Report
Main risks
Main risks related to those issues linked to the group's activities, including, where relevant and appropriate, its commercial relations, products or services that may have negative effects in those areas, and how the group manages those risks, explaining the procedures used to identify and evaluate them in accordance with the national, European or international frames of reference for each field. This should include information on the impacts that have been identified, giving a breakdown of these impacts, in particular on the main risks in the short, medium and long term.
GRI 102-11, GRI 102-15 Pag. 3-7, 21-22
Corruption and bribery
− Measures to prevent corruption and bribery GRI 103-2 Pag. 21-22
− Measures to combat money laundering. GRI 103-2 Pag. 21-22
− Contributions to foundations and non-profit entities.
GRI 103-2, GRI 201-1, GRI 203-3. GRI 415-1
Pag. 22
Information on society
Policies
Policies applied by the group, including the due diligence procedures applied to identify, assess, prevent and mitigate significant risks and impacts, and for verification and control, as well as the measures that have been adopted.
GRI 103-2, GRI 103-3 Pag. 22-23
Main risks
Main risks related to those issues linked to the group's activities, including, where relevant and appropriate, its commercial relations, products or services that may have negative effects in those areas, and how the group manages those risks, explaining the procedures used to identify and evaluate them in accordance with the national, European or international frames of reference for each field. This should include information on the impacts that have been identified, giving a breakdown of these impacts, in particular on the main risks in the short, medium and long term.
GRI 102-11, GRI 102-15 Pag. 3-7, 21-26
The company's commitment to
sustainable development
− Impact of the company's activity on employment and local development.
GRI 203-1, GRI 203-2, GRI 204-1, GRI 413-1, GRI 413-2
Pag. 14, 22-23
− Impact of the company's activity on local populations and territory.
Pag. 14, 22-23
− Relationships maintained with local communities.
GRI 102-43, GRI 413-1 Pag. 22-24
− Association and sponsorship actions. GRI 102-13, GRI 203-1, GRI 201-1
Pag. 23-24
Subcontracting and suppliers
− Inclusion of ESG issues in the purchasing policy.
GRI 102-9, GRI 103-3, GRI 407-1, GRI 409-1, GRI 414-2
Pag. 25
− Consideration in relations with suppliers and subcontractors of their social and environmental responsibility.
Pag. 21-22,25
− Supervision systems and audits and their results.
Pag. 25
31
Contents of Law 11/2018 NFIS Standard used Page of the Report
Consumers
− Measures for the health and safety of consumers.
GRI 103-2, GRI 416-1, GRI 416-2, GRI 417-1
Pag. 25-26
− Complaints and complaint management system.
GRI 102-17, GRI 103-2, GRI 418-1
Pag. 26
Tax information
− Profits obtained by country. GRI 201-1
Pag. 26
− Income tax paid. Pag. 26
− Public grants received. GRI 201-4 Pag. 26
The Directors of Grupo Osborne, S.A., having met on 24 April 2019 and in
compliance with the requirements established in article 253.2 of the Consolidated
Text of the Spanish Enterprise Act and article 37 of the Spanish Commercial Code,
proceeded to prepare the Non-Financial Information Statement for the financial
year between 1 February 2018 and 31 January 2019.
Mr Ignacio Osborne Cólogan
Chair
Mrs Sofía Osborne Coloma
Vice-Chair
Mr Fernando Terry Osborne
Managing Director
Mr Tomás Osborne Gamero-Cívico
Board member
Mr Jorge Osborne Cólogan
Board member
Mr Rafael Osborne Fernández
Board member
Mrs Blanca Osborne Fernández
de Peñaranda
Board member
Mr Enrique Osborne Sanz-Magallón Vice-
Secretary Director
Ms Beatriz Osborne Osborne
Board member
Mr Fernando Osborne Blanco
Board member
Mr Francisco Ballester Almadana
Board member
And for the record, I sign this Document in El Puerto de Santa Maria (Cádiz) on
24 April 2019.
Ms Adela Lario Rivas
Secretary (non-director) of the Board of Directors