WELCOME Dear Reader, You might notice that our CSR report is looking a bit slimmer this year. That’s because we have listened to our stakeholders’ feedback on how we communicate our CSR activities and subsequently decided to take a fresh approach. This year’s report still informs you of our CSR strategy, focus areas and related activities in the reporting year according to the GRI standard. To gain a complete story of our CSR journey, we would encourage you to visit the CSR section of our website. We also participated in a United Nations Development Programme (UNDP) initiative called SDG Accelerator. The pilot programme supports businesses in boosting their engagement in the business opportunities presented by the SDGs. As a result, we have fast tracked our development of a durable anti-fog coating for industrial food packaging. This helps to maintain food freshness for a longer time in the supermarket fridge, increasing its shelf-life, thus helping to reduce food waste. A year of achievements We are excited to share that we have reached our 2020 goal of CO2-neutrality across all of our production sites two years ahead of schedule. This helps us to meet the needs of our environmentally conscious customers, as well as help minimise the effects of climate change. We have experienced significant company growth in 2018, expanding our employee number by 8% from the previous year. Employee well-being and motivation continues to be a priority for Palsgaard – we have a strong history of positive results from our employee satisfaction and motivation survey. To strengthen our efforts in building our employees, a management development course was introduced, which aims to empower them in their roles. It is an ongoing commitment, where managers complete short courses as deemed appropriate. An increased focus on Environmental Health and Safety (EHS) has paid off and almost halved the frequency of workplace accidents. This is an improvement, and we will remain focused on reducing this number further. Achieving CO2-neutrality status ahead of schedule, along with substantial company growth, has given us an extra burst of stamina to continue making a difference. We hope that our position and approach to sustainability influences even more positive changes in the food industry. Our commitment to RSPO-certified ingredients, for example, has already shown that we can make an impact among our stakeholders. There will be more CSR opportunities awaiting - it is an everlasting journey and with the strong backing of our company's dedication to local communities, we will continue to take part in further addressing the sustainability challenges of the world. Our Group CEO, Birger Brix stepped down from his role in 2018. Birger contributed to building a strong foundation, which has helped to develop our position in the industry and support our growth. On behalf of everyone at Palsgaard, we thank him for his dedication throughout the years. Palsgaard has been a UNGC signatory since 2011, having committed to adopting the ten UNGC principles in our strategy, culture and day-to-day operations. By valuing transparency and accountability to our stakeholders and the world, we have committed to reporting annually on our progress. Anders Brix Group CEO Schou Foundation Palsgaard 30 April 2019 Jakob Thøisen CEO Palsgaard A/S Palsgaard 30 April 2019 Our journey to the 2020 targets Figure 1 Core CSR figures and targets CO2 emission (kg CO2 per kg finished product) Energy consumption (gross) (kWh per kg finished product) Water consumption (l per kg finished product) Accident frequency (per million working hours) 2014 2015 2016 2017 2018 Target 2020 0.17 0.12 0.12 0.11 0 0 1.36 1.34 1.27 1.21 1.12 1.05 4.13 3.52 3.74 3.36 3.34 3.17 16 18 13 20 11 3 We have excluded our goal on raw material consumption because raw materials are also used to manufacture intermediate products, which can be used again in another process. Therefore, the measurement of raw material consumption does not truly reflect what is being measured. Our waste water emissions goal has been replaced with a water consumption goal because our ability to accurately measure waste water emissions is hindered by a number of operational factors. The vast majority of our products do not contain water and we lose some water due to evaporation, especially from cooling systems. Water consumption is a better measure of resource utilisation than waste water emissions. 5
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