WELCOME CEO statement 2021 Dear Reader, It is now over two years since the emergence of the Coronavirus pandemic in early 2020. A worldwide crisis which started in one territory, but which rapidly affected every corner of the globe. During these years our highly interconnected world has been challenged across many fronts, from addressing public health emergencies to maintaining stretched supply chains. What is evident is the ability of the global population to work collectively together across borders, faiths and beliefs for the better good of our fellow global citizens. The development and rollout of Covid-19 vaccine programmes and support systems shows the astonishing results we can achieve when there is a collective will. Whilst the past two years have been challenging for Palsgaard as a business and as a place of work, we believe that our deep-rooted values and our century of experience have enabled us to support our employees, their families, our partners, and customers in finding solutions and new ways of working which support both the business and the individual during a heavily disrupted period. During 2021 we continued to focus on employee well-being and their health and safety in the workplace. Our bi-annual Employee Satisfaction Survey indicated significant areas for improvement in employee engagement and well-being, particularly at our Danish site. We have made immediate corrective actions in this area and hope to report a noted improvement in results before the publication of our 2022 CSR report. Our investment in a Biogas facility has also seen ground broken on the project. The planned solar park project, together with a collective of other companies from the Juelsminde area, is progressing through the local authority approval process. Other initiatives such as a ground-breaking wastewater recovery system at our new Mexico site; a movement into hybrid and electric vehicles for our company car fleet, and the establishment of e-charging stations for employees are small but significant actions which all contribute to the journey we are on to reaching CO2-neutral status, and limit our negative impact on our environment where possible. Palsgaard has been a UNGC signatory since 2011, with a commitment to adopting the ten UNGC principles in our strategy, culture and day-to-day operations. We will continue to report annually on our progress and supporting the UNGC. We are proud of our achievements highlighted in this document, which were made during challenging circumstances. If the past two years have shown anything, it is that Palsgaard is a highly resilient global company and able to meet new challenges head-on, whilst maintaining our focus on our obligations to our employees, society and our natural environment. In our “Good Growth Strategy 2025” document we have the ambition of becoming a CO2-neutral enterprise by the end of 2025. This will require investments and innovations, and we are pleased to report that 2021 saw us take further steps in the right direction in this area. Anders Brix Group CEO Schou Foundation Palsgaard 22 May 2022 Jakob Thøisen CEO Palsgaard A/S Palsgaard 22 May 2022 Our journey to the 2021 targets We are proud to report that Palsgaard has met most of our core targets for 2021. Maintaining CO2 neutrality across production sites, and meeting targets for energy and water consumption are all accomplishments to be proud of. One area of concern is the increase in accident frequency, and this will be a domain of heightened focus for us going forward. Figure 1 Core CSR figures and targets CO 2 -emission (kg CO 2 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) 2017 2018 2019 2020 2021 0.11 0 0 0 0 1.21 1.12 1.07 1.01 1.04 3.36 3.34 2.92 2.88 2.81 20 11 9 8 17 Target 2021 0 1.05 3.17 5 Target 2022 0 1.03 3.0 5 5
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