WELCOME TO OUR 2016 CSR REPORT Dear Reader, 2016 was a year of steady progress on the sustainability front for Palsgaard. As the inventor of the modern, vegetable-based emulsifier, and a foundation-owned enterprise with a long history of social responsibility, we have continually expanded our pioneering agenda to help lead the way in CO2 emission reductions, sustainable palm oil production and more. Palsgaard’s sustainability agenda has always focused on maximising the benefits of our activities for the world, while minimising the impact of our necessarily energy-intensive production. We continue to support the UN Global Compact and, more recently, we considered our food technology capabilities in light of the organisation’s 17 Sustainable Development Goals (SDGs). 2016 PERFORMANCE Thanks to focused efforts and investments, we became the first and only company of our kind to offer a full range of RSPO SG-certified products. The year also put us on track for several of our 2020 targets, with a reduction in work-related accidents and successful CO2-neutrality at Palsgaard Mexico. We also increased investments in our polymers business, supporting food safety and potentially helping to reduce global food wastage. By streamlining plants and production flows, CO2 emission per kg of finished product remained the same, despite increased production volumes. Total energy consumption fell 5%, creating a net win. Waste water increased, a temporary effect due to insufficient cooling capacity for re-using technical water, and actions are underway to meet this challenge. GOING FORWARD We are a constantly growing company, which challenges energy use and other sustainability targets. We also need to recruit and train many new employees, and bring new production facilities, product types and capabilities on line. Despite such challenges, we continue to plan and introduce new activities to achieve CO2-neutrality at all production facilities by 2020. We will also continue to identify greener fuel alternatives and more sustainable sources of electricity, and refine waste-handling, water usage and waste emissions. Palsgaard remains a dedicated partner to our customers, innovating to bring them sustainable advantages and supporting the wider community wherever possible. Birger Brix Group CEO Schou Foundation Palsgaard 28 April 2017 Jakob Thøisen CEO Palsgaard A/S Palsgaard 28 April 2017 Figure 1: CORE CSR FIGURES AND TARGETS CO2 emission (kg CO2 per kg finished product) Target 2012 2013 2014 2015 2016 2020 0.18 0.17 0.17 0.12 0.12 0 Energy consumption (gross) (kWh per kg finished product) 1.17 1.11 1.36 1.34 1.27 1.05 Waste water emissions (l per kg finished product) 1.53 1.39 1.64 1.42 1.56 1.00 Raw material consumption (kg per 100 kg finished product) 106.49 107.37 108.39 107.71 107.11 104.00 RSPO-certified palm oil (%, Denmark) – – 8 100 100 100 Accident frequency (accidents with absence per million working hours) 14 11 16 18 13 3 CO2 emissions from production increased slightly, despite lower total energy usage. This was due to increased production volume and, therefore, greater CO2 emissions at Palsgaard Malaysia, along with the fact that these emissions cannot be counter-balanced by the energy savings at our already CO2-neutral sites. 4
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