CEO STATEMENT Make the change If food manufacturers all around the globe used sustainably sourced and produced emulsifiers, we could go much further toward solving some of the world’s most important food supply issues and environmental challenges. Dear Reader, Palsgaard has consistently been at the forefront of sustainability in the food ingredients industry. We continue to move closer toward our goal of global carbon neutrality in 2020 and to lift performance in responsible sourcing, employee well-being, and other sustainability focus areas. 2017 performance The year saw continued economic growth for Palsgaard and production optimisation efforts during the year certainly paid off, with reductions in energy consumption, waste water and water consumption per kilogram of finished product across all of our production sites. Our effort to promote and supply Roundtable on Sustainable Palm Oil (RSPO) SG-certified emulsifiers was further solidified by our ability to offer a full product range of these from Denmark. This year, we experienced considerable growth in the sale of these products and it is satisfying to observe the increase in customer purchasing trends for SG-certified emulsifiers. The latest employee survey revealed an increase in overall employee satisfaction and motivation, and in the level of satisfaction of substance in their jobs. We are pleased that we have a highly satisfied workforce and identified an area for improvement to provide clear processes and tools to support employees in doing their job. Regretfully, despite considerable effort to reduce the number of work accidents, 20 accidents with absence, per million working hours, were reported. This of course, is unacceptable and has spurred us to create a global QEHS department focused on health and safety projects to significantly reduce these numbers. Towards the end of 2016, Palsgaard acquired a majority share of a leading Brazilian food ingredients company. The activities of this new entity, Palsgaard Candon, are now within reporting scope for our CSR report. Going forward We aim to steadily and transparently continue toward achieving our set goals, within the frame of our company values and CSR targets. Due diligence processes will be further developed and adapted as we grow, aligning with requirements from regulatory authorities. We will continue to support the UN Global Compact (UNGC) and also extend our support of the UN Sustainable Development Goals (SDGs), focusing even more on human rights and product innovation. Birger Brix Group CEO Schou Foundation Palsgaard 26 April 2018 Jakob Thøisen CEO Palsgaard A/S Palsgaard 26 April 2018 3
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