Report of the cooperative
Members and shares
Letter from the Chairman and the CEO*
Corporate social responsibility*
Cosun at Work
Report of the Supervisory Board
Members of the Board, Supervisory Board, Executive Board and Works Council
* These sections constitute the Directors’ Report within the meaning of article 2:391 of the Dutch Civil Code
Cosun is active in a variety of agro-industrial markets in several countries and has to contend with
strategic, operational, financial and compliance risks that are inherent in its activities. Its strategy is
to control these risks and exploit opportunities wherever possible by maximising the value it extracts
from its raw materials, by means of operational excellence, a targeted product/market strategy, new
product/market combinations and cooperation with growers, customers and suppliers, among the Cosun
businesses themselves and with knowledge centres and educational institutions. We will limit the risks
wherever possible but also take advantage of all the opportunities.
Cosun recognises the importance of risk management to identify and where possible mitigate risks at an early stage. All business groups periodically identify, analyse and evaluate potential material and immaterial risks with regard to both their likelihood and their impact. This process is periodically repeated, with specific attention being paid to quantifying and evaluating the main risks during the budget cycle. The results of these analyses are used to define actions to mitigate the main risks wherever possible.
The progress made implementing these actions is reported to the Executive Board. As part of a four-year cycle, a comprehensive risk analysis was made in 2016 with the aid of a detailed framework to assess all risks and their impact on the business groups’ activities. Our decision to opt for a portfolio with five core activities has had a positive impact on maintaining Cosun’s results even in times of low sugar prices.
The analyses have led to improvements in a number of areas:
With our risk management and internal control systems we seek the right balance between entrepreneurship on the one hand and an acceptable risk profile on the other.
RISK MANAGEMENT STRATEGY
Our internal control system is designed to:
IMPROVEMENTS IN THE RISK MANAGEMENT SYSTEM
Safety and safe working conditions have high priority within Cosun. The measures we have taken are reflected in a decline in the number of incidents. We will continue to invest in prevention. Aviko’s position risk has been reduced by an increase in fixed price hedging of potatoes. Further investments have been made to strengthen a structured and systematic approach to innovative projects. The pension scheme is a defined contribution scheme. However, Cosun has given a guarantee until 2023 to finance the accrual and partial indexation of the scheme, whereby the amount of the contribution is influenced by interest rate movements.
Primary responsibility for the internal control system lies with the boards of the business groups themselves. The Executive Board and the Board have final responsibility for Cosun’s risk management and internal control systems.
At Cosun we apply the Cosun Principles. They direct our actions and conduct and are periodically brought to the staff’s attention. Cosun has also introduced a whistle blower scheme and the Cosun Speak Up line so that staff can report cases that might conflict with the Cosun Principles, anonymously if they prefer. Cosun adheres to accounting principles and has prepared financial and control instructions that include detailed guidelines on financial reporting and accounting. The business groups’ financial managers report functionally to Cosun’s Chief Financial Officer.