2011 Corporate Social Responsibility (CSR) Report

Cheminova A/S P.O. Box 9 Tel. +45 9690 9690 [email protected] DK-7620 Lemvig Fax. +45 9690 9691 www.cheminova.com HELPING YOU GROW

Corporate Social Responsibility Report 2011 2 Corporate Social Responsibility Report 2011 Corporate Social Responsibility Report 2011

Contents

3 Introduction 18 The impact of climate Appendixes: changes on Cheminova’s 4 About the report business 30 Action plan

5 Openness and dialogue 19 Biological diversity 32 Management statement

6 Fulfilling CSR targets for 20 Profile of Cheminova’s sub- 33 Assurance statement 2011 sidiary in China 34 GRI reporting 2011 8 CSR targets for 2012 and 22 Sales and product steward- beyond ship for plant protection 38 UN Global Compact products 9 Cheminova’s business area 40 Glossary 24 Production 10 Village projects in India 42 Special references 26 REACH - New EU chemicals 13 Banana project in Brazil regulation

14 Biology determines the 27 Supplier management products of the future 28 Human Resources 16 Registration of chemical plant protection products is based on science

Front page picture: Harvesting rice in Thailand. Date of issue: March 14, 2012. The report is a translation of the Danish original edition. Contact: Lars-Erik Kruse Pedersen ([email protected]) Corporate Social Responsibility Report 2011 3

Introduction ”We have reached many important goals and initiated significant activities. We are now working on setting new long-term goals. The targets will ensure that Cheminova’s mission continually is translated into higher food production through more efficient, safe and environmentally friendly plant protection.”

Kurt Pedersen Kaalund

Helping you grow - Chemistry with care The CSR Report for 2011 is in full our annual reporting In order to better visualize how Cheminova’s mission is required of members of the Global Compact. This report reflected in a long-term CSR perspective, we will during 2012 describes our progress towards implementing the principles elaborate on the target “Helping you grow - Chemistry with of the UN Global Compact and consequently Cheminova’s care”. contribution to the elimination of hunger and poverty, which is We will through our product range contribute to increase a key objective of the UN Millennium Development Goals. food supplies, reduce exposure to chemical products and use In this year’s report we have among other articles chosen fewer resources to produce products. We will therefore in- to convey the impression of how our company in China is creasingly address and make transparent our initiatives related involved in CSR work, as well as an article describing the pro- to one of the world society’s biggest challenges which is to cedure for approving the industry’s products. These approvals feed the earth’s growing population. The idea is to develop an are based on a scientific basis with ever increasing demands index that can actually measure and illustrate the momentum that contribute to reduce the risk of using plant protection on this and other goals, like we do on our other strategic and products. financial goals. Already in this report we present an article on Our many stakeholders have in 2011 shown great interest in how we develop new products in regard to “Helping you grow our work on CSR and the dilemmas and challenges associated - Chemistry with care”. with it. The dialogue has given us valuable input and inspira- A recurring theme in previous CSR reports has been the tion to our efforts on this part of our business. implementation of Cheminova’s ambitious plan to phase out It is my colleagues’ and my wish that this report will be the most toxic products, known as WHO class I, in developing well received and will create a basis for a continued positive countries. dialogue on CSR. We are the first company in the industry that has completed such an ambitious phase-out plan and have subsequently been able to focus on new tasks. Among these are our village projects which in line with our mission aims at demonstrating Kurt Pedersen Kaalund that living conditions for common people in rural areas can President & CEO be improved with modern agricultural techniques and proper Cheminova A/S product use. 4 Corporate Social Responsibility Report 2011 About the report

This report provides a status on Chemi- nova’s work within the area of Cor- porate Social Responsibility (CSR) in 2011 and thereby fulfils the reporting requirements set out in Section 99a of the Danish Financial Statements Act (Årsregnskabsloven) in accordance with the exception in paragraph 7. The CSR report provides information about Cheminova A/S, all subsidiaries and joint venture companies with an ownership of more than 50%. The target audience of this report are employees, future employees, the authorities, shareholders, customers and suppliers as well as any individuals and organisations who may have an interest in Cheminova. It is our wish that the report with its detailed articles on specific activities Exchange of experience with an Indian subcontractor. from 2011 will provide the reader with insight and understanding of the scope reporting on our CSR activities within a Dilemmas and shared responsi- of our CSR work, and how these ac- number of important areas. bility tivities are an integrated part of the day The inspiration for selecting the It is Cheminova’s mission to contribute to day business of the company. specific issues addressed in the present to the world’s food supply. Efficient agri- report is based on input and feedback culture is one of the prerequisites for Global Reporting Initiative (GRI) from the stakeholders which have achieving the UN goal ‘End poverty 2015 and Global Compact shown an interest in Cheminova’s CSR – The Millennium Development Goals’, The specific reporting on GRI indicators activities throughout the year. which among other things are about is undertaken at level B and provides a reducing hunger, poverty, child mortality systematic overview of our activities. Content of the report and improving public health. Neverthe- Furthermore, the report provides an up- The report includes facts and short sec- less, Cheminova faces a number of date on our progress under each of the tions on fulfilment of set targets. Fur- dilemmas as a supplier of products ten principles of UN’s Global Compact. thermore, the report contains detailed to societies and countries where the These items are reported in separate articles on progress in selected focus conditions are significantly different chapters of the report. areas from 2011 and special initiatives from those in Denmark, in particular with importance to our business area. when it comes to safety and correct Organisation of the CSR work The CSR targets and focus areas for use of the products. As a company we Organisationally, the CSR work is rooted 2012 and onwards are presented as an have a shared responsibility to improve in Cheminova’s top management, the overview table and as a detailed action environmental and working conditions, Global Executive Committee (GEC), with plan for the individual focus areas. especially in connection with our own whom the CSR work has been agreed Additional information on Cheminova’s production in developing countries, and who has approved this report. The CSR activities including progress on but also through supplier control and focus areas are selected by the CSR the 2011 focus areas and the targets product stewardship. The CSR report steering group with the objective of pro- for 2012 is available on our home page describes how we address such issues. viding an enlightening and systematic www.cheminova.com. Corporate Social Responsibility Report 2011 5 Openness and Dialogue

There was great interest and inquisitive- ness at the open house arrangements in 2011.

Cheminova strives to ensure and en- In 2011, three open house days were with Cheminova in promoting product gages in a continued dialogue with its held at the headquarters in Denmark stewardship and environmental respon- neighbours, e.g. the local community, and additionally we had several groups sibility among farmers. Information on authorities, educational institutions and of visitors (students, organisations etc.). the safe use of products – as mentioned politicians, while observing the limita- Altogether more than 1,900 people in the section on product stewardship tions due to stock exchange rules, pro- visited the premises. – is an integrated part of the marketing tection of sensitive personal information Further, several politicians including of products to end-users in developing and general data protection rules etc., ministers have visited our headquarters countries. as well as legislation and competition with the purpose of discussing energy Suppliers are audited with focus on rules impose on openness. We do of taxes and their implication on energy the environment, safety and labour stan- course engage in a continued and open demanding environmental protection dards in accordance with the company’s dialogue with the relevant authorities in facilities. With the purpose of improving Supplier Code of Conduct which forms the countries where we operate. conditions for people and companies in the natural basis for a constructive The company actively strives to keep the local area several items were dis- dialogue. well-informed within the many subject cussed with Danish politicians in 2011 areas of relevance to its operations on local, regional and national level, e.g. Employees as well as current and potential busi- location of a new hospital, pre-hospital In 2011, there has been focus on inte- ness areas. Via open literature as well response and infrastructure/highway. gration of the company values in the as scientific publications and trade Our operation in India has collabo- everyday activities. A range of examples sources, the press, specific searches rated with the Gujarat Pollution Board have been pulled together to illustrate on topics and the internet, information on a seminar on plume reduction. A how the values live in the daily busi- and expressions of opinion in respect of number of industry leaders participated ness. These cases will be compiled in CSR related issues are sought. Particu- in the meeting, which had Cheminova’s a value leaflet, at first in English and larly concerning product properties, side pioneering efforts in this area as basis Danish. The leaflet will be distributed effects and applications, and, in general, for the discussions. throughout the organisation in 2012 and issues linked to dilemmas and contro- is meant to address the impact of the versies within the company’s sphere of Investors company values on specific working interest. Of primary interest to stock market situations for the individual employee. analysts, a number of investor meetings Like last year, monthly newsletters Local engagement are held both physically and online and including topics on CSR related issues Cheminova is an important part of the are thus accessible to all stakeholders, were sent to employees in all subsid- local society where we operate facili- including the more than 7,500 share- iaries in 2011. CSR is regularly discussed ties and employ people. We contribute holders of the parent company Auriga. throughout the global organisation in to the local economy and offer a wide Shareholders also receive shareholder relation to the daily business both at the range of job opportunities. We make a letters which, like the investor presenta- local level and at the headquarters in point of good neighbour relations and tions, provide updates on CSR activities. Denmark, e.g. the works council in Den- participation in local cultural life and This material is publicly available on mark has had the company’s policies, activities. This is of particular impor- Auriga’s and Cheminova’s websites. general wellbeing of employees and tance in geographical areas considered continued education on the agenda. less developed in Denmark and India Customers and suppliers where we operate. The influence on the CSR forms part of the dialogue with environment from production plants is the company’s customers, many of described elsewhere in this report. whom appreciate to cooperate actively 6 Corporate Social Responsibility Report 2011 Fulfilling CSR targets for 2011

Overview of targets and fulfilment. Fulfilment of the specific areas is described in the paragraphs ”Follow up on targets” in the individual sections of the report.

Target Fulfilment Product stewardship FAO’s Code of Conduct shall be included as part of the general sales Implemented by Cheminova A/S. The subsid- conditions. Compliance with FAO’s Code of Conduct will be an inte- iaries are in the process of translating to local grated part of Cheminova’s general sales conditions languages and adjusting to country specific statutory requirements Further country/market specific improvement/adjustment of the safe- The safe-use film has been improved and use film adjusted according to input from subsidiaries Village projects India: The projects in the nine selected villages will be continued in Continued as planned 2011-12 with implementation of adjustments based on the experience gained India: Impact assessments and implementation of specific improve- Accomplished as planned ments identified to be undertaken in two villages India: Project ’Aakash Ganga’ on water conservation to be initiated in Project initiated in one village five villages India: Project ’Saheli’ on women empowerment on safety, health and Initiated as planned livelihood to be initiated in four villages Brazil: Project among small-scale banana farmers in the state of Continued as planned Goias to be continued in 2011-12. Brazil: A new project on community development and safe and envi- Delayed because of flooding ronmentally friendly control of plant diseases to be launched among small-scale banana farmers in the state of São Paulo in 2011

Production India: The environmental management system of the production at Certificates received the Technical Division will be certified in relation to ISO 14001 and OHSAS 18001 India: Reduction of energy consumption at the Technical Division by Energy consumption reduced by 36% per 3% per produced volume produced volume India: Reduction of water consumption at the Technical Division by Water consumption reduced by 32% per 5% per produced volume produced volume India: Reduction of the COD emission from the Technical Division COD emission reduced by 8% per produced and the intermediate plant by 5% per produced volume compared to volume 2010 Denmark: Certifying of the company’s environmental management External audit accomplished in September. system in relation to ISO 14001 and OHSAS 18001 to be maintained Three small nonconformities corrected Corporate Social Responsibility Report 2011 7

Target Fulfilment Production Denmark: Continuous optimization of energy consumption through External audit accomplished in September. retention of the certified energy management system according to One small nonconformity corrected DS/EN 16001 and compliance of the Danish Energy Agency’s demands on energy management according to DS/EN 16001 Denmark: Education and training of the employees’ attitude and Accomplished as planned behaviour in order to achieve fewer accidents and errors Australia: Reduction of absenteeism due to accidents No accidents in 2011

Australia: Environmental certification according to ISO 14001 to be External audit accomplished in September. maintained Two small nonconformities corrected Australia: Obtain a safer behaviour among the employees. The policy Accomplished as planned is updated and training programmes for all permanently employed are accomplished Australia: Quantity of waste for recycling to be increased by 5% Quantity reduced from 194 to 160 tonnes. The part of waste for recycling has been reduced from 80.2% to 77.6% of the total quantity of waste REACH – New EU chemicals regulation Registration of the pre-registered substances that have to be regis- Plan is followed tered before the end of 2013 Supplier management In each of Cheminova’s regions the supplier management will be Persons have been selected and trained ex- rooted with a person with a technical background cept for Region International Human Resources Whistleblowing: Spread the knowledge of the whistleblower func- Updated ’Code of Business Principles’ has tion to all employees of the global organisation been distributed to all employees of the group

Mission, vision and values: Maintain the knowledge of the com- Leaflet planned to be published in 2011 will be pany’s mission, vision and values among the employees of the global published in 2012 in Danish and English organisation and ensure that the values ’live’ in the daily life

Anti-corruption: Communication of the company’s anti-corruption Special efforts have been made to com- policy will be accomplished in selected subsidiaries municate and assess the knowledge of our anti-corruption policy in three countries: India, Mexico and Russia 8 Corporate Social Responsibility Report 2011 CSR targets for 2012 and beyond

New targets have been established for the years to come. The targets are described in greater detail in the action plan on page 30. The work on the targets which were not achieved in 2011 will continue in 2012.

Village projects products compared to the area of • The energy consumption for produc- farm land treated. tion of an insecticide will be reduced India • At least 20 formulations with low con- by 8% in 2012. • In 2012, further 12 hectares will tent of volatile organic solvents will be be included in the project “Aakash developed in the period 2012-14. Australia Ganga” – conservation of rain water • Lower average toxicity of newly devel- • The water consumption in the manu- that otherwise would be lost through oped formulations measured through facturing cleaning process will be run-off. classification of the formulations in minimized in 2012 as part of the site’s • The project “Saheli” on women the years 2012-14. Water Conservation Programme. empowerment on safety, health and • It will be ensured that external con- livelihood will be increased with five Production tractors in 2012 work in compliance villages in 2012. with site health, safety and environ- • Impact assessment of village projects India ment requirements. will be increased with two model vil- • The energy consumption for the pro- lages in 2012. duction of three large products will be REACH – New EU chemicals reduced by 3% per produced volume regulation Brazil in 2012. • Registration of the pre-registered • The project among small-scale banana • The frequency and seriousness of substances that have to be registered farmers in the state of Goias will be both incidents and accidents at work before the end of 2013. continued in 2012. will be reduced by 5% in 2012. • In 2012, a project on community de- • The production at the Intermediate Supplier management velopment plus safe and environmen- Division will be certified in relation • In 2012, the supplier management tally friendly control of plant diseases to ISO 14001 and OHSAS 18001 not in Region International will be rooted will be launched among small-scale later than mid-2013. with a person with a technical back- banana farmers in an environmen- ground. tally sensitive area in the state of São Denmark Paulo. • Re-certification of the company’s Human Resources environmental management system • A leaflet with narratives about the “Helping you grow - Chemistry in relation to ISO 14001 and OHSAS company’s values will be distributed with care” 18001. Certifications to be maintained to all employees of the group in 2012. • Long-term targets will be prepared in 2013-14. • In 2012, all managers in Denmark will on the basis of one or more of the • Certification of the company’s energy implement the company’s values to below: management system in relation to own employees through meetings or o An index illustrating the farm land ISO 50001 in 2012. Certification to be other activities. where the crops and thus the food maintained in 2013-14. • In 2012, a global HR strategy for 2012- production is protected by Chemi- • Education and training of employees 2015 will be prepared. The strategy nova’s products. in better attitudes and safer behaviour will support the business strategy for o An index illustrating the quantity of according to the programme SAFE is Cheminova. Cheminova plant protection prod- spread to the global organisation in • In 2013, an employee survey will be ucts used per area unit. 2012-13. accomplished in the global organisa- o An index illustrating selected, es- • The quantity of hazardous waste from tion to investigate employees’ know- sential resources used by Chemino- the production of a fungicide will be ledge of the company’s values. va to manufacture plant protection reduced by half in 2012. Corporate Social Responsibility Report 2011 9 Cheminova’s business area

Cheminova’s primary activities are the development, production, marketing and sale of chemical products for the protection of agricultural crops world-wide.

The framework for the company’s busi- Products ness activities is Cheminova’s Code of The company produces herbicides, in- Business Principles and Cheminova’s secticides and fungicides. The products mission, vision and values. These sup- are sold primarily as ready-to-use plant port and are consistent with the UN protection products under our own Global Compact, the Danish version brands, own registrations (use permits) of the European Chemical Industry and labels. Registration work is detailed Council’s (CEFIC) Responsible Care pro- in a separate article (see page 16). On gramme and the FAO Code of Conduct. Cheminova’s website a brief description of the general approval conditions for Need for plant protection plant protection products can be found. UN’s Agriculture and Food Organiza- Cheminova also supplies active tion FAO estimates that by 2050 70% ingredients which are used for further more food than today has to be pro- processing to produce ready-to-use duced - at roughly the same agricultural plant protection products. Moreover, we area, which is already under cultivation. also manufacture and sell a number of The yield per hectare should increase fine chemicals for industrial use as well significantly just to keep pace with the as micronutrients for agriculture. growing population. A consequence will Cheminova is a member of various be an increasing need to protect crops, professional organizations like CropLife, which falls well within our mission and resistance management groups under business area. CropLife, The Confederation of Dan- ish Industry and The Process Industry Association as well as local industry organizations.

Our products are primarily used for plant protection in professional farming. Development, testing - and a lot of agricultural products at a local market. 10 Corporate Social Responsibility Report 2011 Village projects in India

About 455 million people in India (about Village” with an objective of making Ajit Inamdar, Chief 38%) live on less than 1 USD per day, available the scientific knowledge of Finance Officer and CSR responsible in a poverty line defined by the World modern agricultural practices and faci- Cheminova India Bank. litating support in a small way in basic gives his account Cheminova India has selected a few needs in education, health, hygiene of the impact as- remote villages across agro climatic and empowerment of women. sessment. regions projected as ”Cheminova Model

Assessment of the village Pabdara made by The Royal Danish Embassy:

Model villages – impact Activities Impact assessment Cheminova India’s model villages are 1) Training: • Increase in outreach of farmers with 40%. developed with the objective of add- Training on safe use and handling • Considerable improvement in practices for safe handling ing value to socio-economic aspects of crop protection products was evident. of the farming community. Our focus • Women stores chemicals in lofts beyond reach of children. • Recommended dose of chemicals only. is on 3 key aspects, advisory services, • Farmers are more likely to stop smoking while spraying in education-health-hygiene and safe use the fields. of pesticides under our model vil- • 25% reduction in cost of cultivation. lage activities. Besides these, specific • Seeing value in Cheminova’s packages of practices. women empowerment initiatives have 2) Distribution of safe-use kits • 60% farmers have been benefitted. also been initiated in the villages. The / medical kits • Farmers would continue to use personal protection. programmes have brought in a change • No burning sensation in eyes and hands now. in the practices and have improved the • Stopped mixing chemicals with bare hands. image of the company in the eyes of the 3) Trials and demonstrations done • Created visibility for Cheminova. stakeholders. on more crops in 2011 • More acceptance of Cheminova recommendations. • 100% farmers have accepted that improved output is External impact assessment attainable. The recent impact assessment accom- 4) Soil testing • Helped to reduce fertilizer input cost. plished in two of the model villages has brought out interesting insights and 5) Health: Provided medical unit • Students expressed happiness and benefits. the opportunities for improvements. in the local school Two evaluations, one each in the model 6) Support in student education • Children and local families benefitted and associated with villages of Ksheerasagar in Andhra by providing books Cheminova. Pradesh and Pabdara in West Bengal, were completed for the activities of 7) Community development • Community is self-motivated to keep the surroundings clean. 2011. The Pabdara assessment was done activity - keep the village • Mosquito nuisance is reduced. clean campaign • Want to continue. by the Royal Danish Embassy while the Ksheerasagar evaluation was done by 8) Saheli launch - 30 women • Women appreciated their learning and are aware of N.G. Achraya, Ranga Agricultural Univer- participated in the safety precautions to be taken. sity. The findings and recommendations training programme • Will ensure that the men use personal protection. are briefed here: 9) Medical camp for • More than 250 women participated and benefitted. The village Pabdara gynaecological and The assessment was made based on paediatric problems the benchmark from 2010 in the areas 10) Education on livelihood • More than 100 women participated. of economic conditions, political and • Shown confidence in Cheminova and eager to learn more institutional, sociocultural and environ- to improve their livelihood. mental. The findings from Pabdara are provided in the table. Corporate Social Responsibility Report 2011 11

With the village projects we are supporting more of the UN Millennium Development Goals: UN’s Millennium Development Goals

”Reduce by half extreme poverty and 1) Reduce by half extreme poverty and hunger hunger by 2015”, ”Achieve universal by 2015 primary education”, ”Promote gender 2) Achieve universal primary education equality and empower women” and ”Reduce child mortality rates”. 3) Promote gender equality and empower women 4) Reduce child mortality rates 5) Improve matenal health 6) Combat HIV/AIDS, malaria and other diseases Key recommendations: 7) Ensure environmental sustainability • To a greater extent make the community a partner to plan activities in 8) Develop a global partnership for co-operation with them. • Formation of farmer groups. development • Review of the project on quarterly basis to plan a smooth exit process for Cheminova.

Assessment of the village Ksheerasagar made by N.G. Achraya, Ranga Agricultural University:

The village Ksheerasagar in Andra Pradesh

• All farmers were interested in getting advice from Cheminova staff on vege-table cultivation.

• 49% of farmers moved from low/medium knowledge to high level, indicating that the project benefitted them in better understanding of pests and diseases, pest management practices, fertilizer management and overall crop management practices.

• Advisory services helped 59% of farmers to move from low to medium/high level of adoption of improved practices.

• Per acre return was increased with the cost benefit of 1:1.35. There are potentials to improve this ratio further.

• The project helped in the adoption of safety practices. All the respondents were using face mask and about 88% used head gear and 54% used gloves and shoes.

• 72% of farmers are burying the used containers in the field and the rest have started Though the assessors have not given cleaning them before disposing. any specific recommendations for • All respondents have reported improved knowledge of sprayer upkeep and maintenance. Ksheerasagar we will work to improve the activities from our learning • All villagers have expressed their desire to continue the practices of the project and and implement relevant initiatives in meant that they have understood the pitfalls of their farming practices and would this direction. overcome with Cheminova’s assistance. 12 Corporate Social Responsibility Report 2011

”Farm women empowerment (Saheli) ”Prospects of conserving water Dairy at village level operated - a Cheminova India initiative” in rainfed agriculture”,” by women. > Read the artikle on www.cheminova.com > Read the artikle on www.cheminova.com

Farm Women Empowerment pro- Prospects of conserving water in gramme (SAHELI) rainfed agriculture Saheli is an initiative towards Respon- Cheminova India is looking at the sible Care to educate the rural women prospects of conserving rain water for on safety, health and livelihood. We have growing better crops by demonstrating innovatively coined the name Saheli tak- simple techniques of water conserva- ing the first two letters from each of the tion. To create an interest, farmers were three core areas Safety, Health and Live- made aware that water lost as run-off lihood. In Hindi Saheli means a friend, belongs to them. particularly a woman. In any society, “It is your water that goes down the women are always well wishers of their drain. Save it to gain more” was the ap- families. They have an emotional con- proach adopted. The project implement- Dr. Gangadharan Shankar, nection with everyone in the family and ed in the pulse growing belt of Gulburga Senior General Manager, are most concerned about the wellbeing was more than an eye opener to many Business Development, of everyone in the family. Saheli aims at farmers. When the farmer harvested tells about two projects. spreading the message of safety to the more with a cost benefit ratio of 1:12.8, men through the women in the com- the project helped us to conserve an munity. In addition to safety, we educate estimated quantity of 50 million litres of them in the areas of personal health, water. Dr. Gangadharan Shankar, CSR cleanliness, hygiene, animal husbandry, Coordinator in 2011, briefly describes child nutrition, saving for the future, etc. the project and its outcome in the article to provide them with a comprehensive “Prospects of conserving water in rain- knowledge which would empower the fed agriculture” which can be found on women. Read more in the article ”Farm our website. woman empowerment (Saheli) – a Cheminova India initiative” which can be found on our website. Corporate Social Responsibility Report 2011 13 Banana project in Brazil

The environmentally benign application of the fungicide flutriafol shows promise as an important tool for improved cultivation of bananas in the small-scale farmers communities in Brazil.

The vast majority of Brazil’s appr. ing the fungicide directly to the plants to be able to control the disease also in 500,000 hectares of banana crop is without diluting and mixing the product environmentally sensitive areas along grown on small family farms that are this method combines safety in applica- streams and rivers. Here the new tech- considered relatively low-tech and often tion and protection of the environment nology with direct application of flutriafol with less than 10 hectares of land. with agronomical and economic sound to the axils of the plants is expected to Use of fungicides is vital to the produc- plant protection. Safe handling and use make a significant defence in disease tion in large part of the area. State agro- of pesticides as well as correct use control in an environmentally benign nomic advisers consider the two fungal of personal protection equipment are way. This will contribute to improving diseases yellow and black sigatoga integrated parts of the project. the quality of life in this particular farm- as the two highest ranking economic ing community. important diseases infesting banana The new technology helps the plantations. Particularly the black siga- farmers The technology has been tested toga is in many areas not only a threat During 2011, the first full year of the Before launching the project with the to the quality of the crop but also posing project, covering the end of the 2010/11 local farmers the technology has been at serious risk that the banana harvest season and the first part of the 2011/12 tested and validated and recommended could be destroyed altogether. season the project has been running as by local experts in plant pathology and planned. During this period the farm- agronomic technology from Universi- Project in the state of Goias ers have gained experience with using dade Estadual Paulista and Agencia Pau- In 2010, Cheminova initiated a co-oper- the new application method and have lista de Tecnologia dos Agronegocios. ation with the local farmers association already seen some improvement of the Due to heavy rains and flooding it was, and governmental consultants in plant yield and quality of the crop. Although however, not possible to start the proj- protection. The purpose being demon- no quantifiable data is available the par- ect at farmer level as originally planned strating to the farming community ticipation in the project and the already in 2011. The project will be launched in that improved agronomic practice with observed efficacy of the product has 2012. environmentally friendly control of plant made the farmers very optimistic about diseases would help to promote com- the coming harvest being less affected Follow-up on targets munity development and the quality of by yellow sigatoga. • The project in Goias is proceeding as life among the small scale farmers. planned. The project is based on new applica- Project in the state of São Paulo • The project in São Paulo is delayed tion technology recently developed by In the identified project area the very ag- due to flooding, but the initial techni- Cheminova: With a simple hand-held gressive disease black sigatoga is preva- cal evaluation has been performed. lancet device a few drops of the fungi- lent. If the control of this disease fails cide flutriafol can be applied precisely on there is a very high risk that the banana the individual banana plant. By target- plants die. It is therefore very important 14 Corporate Social Responsibility Report 2011 Biology determines the products of the future

Extensive biological testing ensures that Cheminova’s new products are benign for human health and the environment, while still being efficient tools for control of weeds, insect pests and fungal diseases.

Development of environmentally friendly Agronomists work closely with tech- The products products is one of Cheminova’s overall nicians on tests in the biological labora- have to be stable strategic goals. This includes products tory. Product candidates are tested in and mixable with with a better WHO classification and assays with insects, weeds or infected water of varying products with a reduced content of vola- plants in pot trials, petri dishes and on quality. tile organic solvents, meaning that unde- microtiter plates. We have the option sirable side effects on human health and to test products on a wide range of the environment are reduced. plant diseases and weeds and sucking, stinging and biting insects. New assays Efficacy and crop safety is opti- are constantly being developed in order mized in the same product to match the desired development of In our efforts to develop environmen- Cheminova’s product portfolio. tally safe products, we do not jeopar- One or more candidates are selected dize our standards for crop safety and from the laboratory tests for further efficacy of the products against insect testing in the field. This is done in pests, weeds and fungal diseases. It collaboration with Cheminova’s subsid- is important that we deliver products iaries, who have detailed knowledge that contribute to increased yield and about local conditions and contacts to better quality of agricultural produce. independent field trial stations and offi- All products are therefore tested during cial institutes, who conduct the trials for the development phase, first under us. In Europe, the products will always controlled conditions in our biological be tested at field trial stations that can laboratories and greenhouses, later con-duct the trials in compliance with under natural conditions in the field in Good Experimental Practice (GEP). different parts of the world. The results from these tests are compiled and used Mixtures can give a better effect as documentation in the process of get- with less active ingredient ting approval by regulatory authorities in Global Biological Development is also in- the countries where we wish to market volved when ideas for new products are our products. developed. It can be mixtures of two or The biological development activi- more active ingredients. The reason be- ties are coordinated from Cheminova’s hind mixtures can be synergy between headquarters in Denmark by the Global the active ingredients, which will make Biological Development department. it possible to reduce the total amount Corporate Social Responsibility Report 2011 15

Field tests on chili crops in India.

of active ingredient per hectare for the lation meets the criteria for low or no Sprouting pollen from tobacco plants benefit of the environment at the same content of volatile organic solvents. This has turned out to be a good test model time as a high efficacy is maintained. is a widely recognized standard method, for eye irritation on mammals. In this Another reason for using mixtures can which is being used by the California way we are able to test a large number be the need to prevent development of Department of Pesticide Regulation. of test products and identify the best resistance in insects, fungal diseases We mainly develop formulations that candidates for further development or weeds towards certain plant protec- either do not contain or have a very low without using test animals. tion products. Resistance can result in content of volatile organic solvents. The significant loss of yield for the farmers. preferred formulation could be solid or Cheminova participates actively in IRAC water based or contain less than 20% (Insecticide Resistance Action Com- organic solvents. mittee) whose mission it is to promote communication of and knowledge about The goal is to improve product insecticide resistance. Another impor- classification tant part of the work is promotion of During formulation development we do management strategies to maintain the in general attempt to meet the need for efficacy of products and thereby support efficient products with mild co-formu- sustainability in agriculture and improve lants and technologies. It is our goal to public health. improve the average classification of our product portfolio. In the development Development of ready-to-use work we use the WHO classification products (formulations) scheme, but in the future we will take Biological efficacy as well as safe prod- into account the new and more detailed uct handling are taken into consideration classification tool provided by the CLP in developing modern formulations. At classification scheme (Classification, the same time, it is our goal to minimize labelling and packaging of chemicals – the use of volatile organic solvents in EU Regulation 1272/2008 – which will our future plant protection products. be fully implemented in 2015). In this This is mainly due to the unwanted side way we wish to improve the products effects of these compounds on human when it comes to worker safety and health and the environment. We use the handling. method “Estimation of Volatile Emission Potential of Pesticides by Thermogravi- metry” in order to evaluate if a formu- 16 Corporate Social Responsibility Report 2011 Registration of chemical plant protection products is based on science

“Cheminova supports the establish- ment of sound, safe and sustainable policies that bring effective products to the market while protecting farmers, workers, handlers, consumers and the environment. Above all, we believe in an on-going and intensive dialogue that is open to all parties interested in feeding our ever-growing world population.”

By Diane Allemang, Executive Vice President, and Brad Chalk, Communications and North America, Non-Crop Business Manager

The products that Cheminova provides have been thoroughly reviewed through are carefully evaluated by regulatory a process the public can have confi- agencies around the world which have Benefit for farmers and dence in. Furthermore, all companies a common mission: To provide farm- consumers wishing to register a crop protection ers with tools that improve their ability Cheminova respects and supports the product face the same high regulatory to feed and clothe the population with need to work closely with regulatory hurdles. This screens out organizations minimal risks to them, their workers, agencies to help them perform what is a with resources that are inadequate to consumers and the environment. As an difficult but essential task. What we and determining just how effective and safe example, the regulatory authorities in most other registrants seek is a clear their product candidate may be. The the USA requires more than 100 tests and open dialogue based upon sound playing field is rigorous but it is level. requiring many years and millions of dol- science. Ultimately, all parties involved Risk assessment forces a continu- lars to establish efficacy and safety of a benefit, including the companies that ous improvement upon the capabilities new compound. Some would argue that invest the enormous amount of time of an organization to generate data this is too expensive, too time consum- and money required to register their that demonstrate product efficacy and ing and that much of the data generated products. safety. These efforts have a secondary are unnecessary to protect the public Consumers benefit because there is benefit of improving understanding of and the environment. Others would take nothing more important to them than just how the compound under investiga- the opposite argument and some would a safe source of nutritious food for tion works, leading to the development ban all crop and public health protec- their family. And they want this food to of even more effective products in the tion products all together – despite be readily available, attractive, enjoy- future. Improved knowledge of modes the catastrophic impact on the general able and affordable. Farmers, agricul- of action enables scientists to enhance population. tural workers and those people who activity using less active ingredient, and What is most clear is that the seven handle crop protection products benefit that is an important goal of regulatory billion humans on our earth today because they are given guidance on agencies around the world. depend upon the agriculture sector to how to mix, apply and dispose of these Ideally, a pesticide would simply provide them with food. The anticipated products with minimal impact on them disappear immediately after controlling population increase will put even greater and the environment. its target fungus, insect or weed, but demand on the agricultural sector. The in reality most compounds linger in the pressure to determine an appropriate A driver for development environment. Where do they go? Many balance of risk versus needs has never Registrants also benefit from such a risk assessment tests are designed to been higher. process since the result is products that answer that question. Some compounds Corporate Social Responsibility Report 2011 17

Test on fish is part of the environmental assessment of plant protection products. break down into harmless residuals The approval process follows that quickly dissipate with no impact development of science on soil, water or air. Others may pose a As a result of these enormous improve- potential threat. To register a product, a ments in our ability to understand crop company must fully understand the fate protection candidates, it is natural to and be able to measure the threat. want to employ them to improve our understanding of products approved be- Extremely sensitive methods are fore they were available. In the U.S. and applied in Europe among others, the authorities Current technical standards dwarf those have been mandated to do just that and in place just a few decades ago. Risk re-evaluation of existing compounds assessment can now detect residues has been underway for years. Not all to a sensitivity in the range of parts per veteran products make the cut. trillion where, just a few years ago, the most sensitive tolerances were measured in parts per billion and not long before that, the most attainable goal was expressed in parts per million. The difference in these levels of sensi-tivity can be best understood when applied to time. One million minutes ago, in 2009, the most powerful leader in the world was Barack Obama while one billion minutes ago, that leader would have been the Emperor Trajan. The year was 108 A.D. There was no world leader one trillion minutes ago for the simple reason that there was no organized society. The authorities approve the text of the labels. 18 Corporate Social Responsibility Report 2011 Impact of climate changes on Cheminova’s business

Flooding, drought and climate 120 CO2 emission changes in general make agri-

cultural production unstable CO2 emission from the production sites in India and Denmark. The many places in the world. At 60 significant reduction in 2010 and 2011 the same time we experience is mainly due to reduced production in an increased demand for food. Denmark.

CO2 0 2006 2007 2008 2009 2010 2011

Cheminova is a global supplier of prod- hand what the society can do, on the We can of course better control the ucts for the main agricultural markets other hand what an individual company energy consumption related to our own all over the world. The overall realm of can do. production processes, and the company our business is therefore the total size Cheminova’s efforts can be divided has made significant efforts to reduce of food production in the world. As the into two areas. One is development of the energy consumption and is commit- world population and the standard of new products requiring fewer resources ted to continue these efforts. Reference living are expected to grow in the future, for manufacture per treated crop area. is made to the section on Production. we expect the potential for our busi- Another area is reduing consump- (p. 24).

ness to grow as well. More food has to tion of energy in manufacturing our Development in the CO2 emission be produced from an agricultural area products. We are, however, subject in the period 2006-2011 from our own that is constant or even decreasing on a to international competition, with the companies with production of active global level. implication that an increasing part of the ingredients is shown in the figure above. productions will be sourced from toll It relates to the production facilities in Global warming has high local manufacturers, where we as a company India and Denmark. These two facilities impact do not have the same influence on represented 98% of the total energy The situation looks different if we leave the energy consumption related to the consumption in the company. the global view and go to regional level. production. The market for plant protection products has always been closely linked to the regional climatic conditions. Variable climate conditions are not a new phe- Flooded farm in Australia. nomenon, but according to the climate researchers it is expected that the variations will be more severe and that we can expect a global sea-level rise. Much of the agricultural land in the world is in lowland areas such as river deltas, where transient as well as permanent sea-level rises may result in huge flooding events and loss of crops. We have seen examples of problems in recent years in Southeast Asia and Australia. Seen in this perspective, the global warming may have a negative impact on Cheminova’s business on a local level.

Cheminova reduces CO2 emission Like other companies Cheminova is engaged in the consideration on how to reduce global warming. On the one Corporate Social Responsibility Report 2011 19 Biological diversity

The dilemma is to satisfy food requirements from the Earth’s rapidly growing population while preserving natural habitats from cultivation. One of the major threats to biodiversity is loss of natural habitats due to expansion of farmland.

In 2011, a discussion of the concept of An efficient agriculture is The Danish ambassador in India, Mr. biodiversity in relation to agriculture was necessary Freddy Svane, hands over a sapling centred on the EU Biodiversity Strategy UN’s food and agriculture organization, to one of the students from the 2020 which aims to counteract the loss FAO, estimates that agricultural produc- university in Mumbai. of biodiversity due to loss of habitats for tion must increase by 70% by 2050, a rich flora and fauna. and this objective largely be achieved by In addition to nature with many spe- making production more efficient on ex- cies being of great value in itself, biodi- isting farmland. This is a great challenge. versity is considered a valuable resource But if we continue to farm the most for future generations, although this fertile areas among others in Europe, may be difficult to assess in economic wild nature elsewhere can thereby be terms. preserved and leave room for diversified habitats for biological organisms. Trees for tomorrow Evolution Although agricultural areas contain In 2011, Cheminova’s subsidiary in India launched Habitat changes and species become varying levels of biodiversity, this is a campaign for planting trees entitled “Trees for extinct while others emerge, is a condi- normally far greater in non-cultivated tomorrow”. The campaign was inaugurated by the tion of life which can be summarized landscapes. Therefore it is important to Danish Ambassador Mr. Freddy Svane, which co- as the concept of evolution. This is the preserve these. incided with the World Wetlands Day on February engine that created the current living 2. Mr. Svane presented the first few trees to the nature. More effective and gentler students of Garware Institute of Agribusiness There will always be an ethical debate products about the extent to which human activ- In order to minimize the agricultural im- Management, Mumbai University. While Cheminova ity is allowed to change and exploit pact on the non-cultivated areas there is provided the saplings the students volunteered to nature. This debate has many aspects, a need for continued use of agronomic plant them in their University Campus. In addition, one of the more tangible ones relates and technical knowledge. One of these an estimated 2,500 trees have been planted in and to industrial society’s and agriculture’s areas is better plant protection products. around our model villages with the involvement of impact on the environment in general By using improved products, the farmer channel partners, associates and stakeholders. and biodiversity in particular. can apply less chemistry and still obtain Further, Cheminova was engaged in mega tree That the land is cultivated and the better effect with less environmental im- planting activities surrounding the manufacturing natural vegetation is replaced by agri- pact. Cheminova is dedicated to develop facility located in the State of Gujarat. Saplings cultural crops, is in any case a serious our product range to protect more crop were provided by the Department of Environment interference with the natural order. area by less chemistry applied. Under and Forest and planted by Cheminova employees. Since Cheminova’s business is to the heading “Helping you grow - Chem- In all, 5,000 trees were planted at three factory supply plant protection products for use istry with care”, this is one of our goals in efficient farming, the consideration of for the future. locations and another 5,000 trees on roadside of biodiversity is of concern to Cheminova Specific activities and goals for prod- the manufacturing facilities. and also our industry as a whole. uct development are detailed in article Read more about natural resorts on biology and future products on page (Ramsar resorts) close to production 14. sites on our website. 20 Corporate Social Responsibility Report 2011 Profile of Cheminova’s subsidiary in China

- CSR assessment of suppliers and Quality Control

The CSR-assessment of Chinese QC laboratory in Shanghai. In 2011, suppliers of active ingredients and Cheminova has carried out more than intermediates is further supported in 20 visits and performed more than quality control analysis of the produc- 3,000 analyses. tion conducted at Cheminova’s new

By Roger Ding, Office Manager, Cheminova China

China has around 1,800 agrochemical and intermediates and we performed The laboratory is equipped with mod- producers, among these 500 are pro- one CSR audit, visited 11 new factories ern instruments, such as HPLC and GC ducers of active ingredients, and they and made ten visits at factories we and other minor apparatuses, including produced 2,262,000 metric tonnes of already know. Karl Fischer titrator and Chloride titrator. agrochemical products in 2010. The total The main focus is analysis of active number of employees in this segment is Introduction of Shanghai QC ingredients in order to ensure that the around 160,000. (Quality Control) laboratory products comply with specifications With respect to Corporate Social Re- Cheminova opened a quality control prior to shipment from China. sponsibility (CSR) we can still see chal- laboratory in Shanghai in 2010. The Analytical methods for quality control lenges when it comes to issues such as laboratory is headed by Dr. Yolanda Ke, of more than 30 products have so far low safety awareness of workers and who has 10 years of experience with been transferred from the quality control how the management of Chinese facto- analytical chemistry, and she has 2 as- laboratory in Denmark and implemented ries deals with safety for human health sistants working with her. The laboratory in the Shanghai laboratory. Quality and the environment. We visit many has one room for analytical equipment, factories and unfortunately we still see one room for samples pretreatment, Cheminova chemists visit the manu- examples of unprotected workers and one room for packing and one room for facturers in order to collect samples of unsafe handling of harmful chemicals retaining samples. even if the trend is descending. active ingredients for QC analysis at the Cheminova China does not have own Shanghai QC laboratory. production of agrochemicals. However, we require our suppliers to fulfil the Cheminova CSR standards. We will run a first step screening of the manufacturer based on a general impression and as a second step we will send our specialist from the Shanghai office or experts from Denmark for a more detailed audit. Finally, we will provide feedback to the manufacturer on which items they need to improve before we can start our co-operation. We will also visit suppliers unannounced in order to follow up on agreed actions and in order to continue the dialogue on compliance with our Supplier Code of Conduct. In 2011, we have worked with more than 30 suppliers of active ingredients Corporate Social Responsibility Report 2011 21

History of Cheminova Chinas

• Cheminova Shanghai Representative Office was founded in Shanghai in 1997 with only one employee. • Cheminova China Ltd was founded in Shanghai in January 2010 with totally nine employees. The company is a pure sourcing subsidiary, mainly doing the consultancy for headquarters and subsidiaries. • Cheminova opened its own QC laboratory in Shanghai in January 2010 to meet the increasing demands for quality control analysis of pre-shipment samples and quality screening of products from potential new suppliers.

control analyses are carried out on both Increased attention to CSR active ingredients and intermediates. An We see there is great improvement in Agriculture in China average of more than 200 analyses was Chinese agrochemical industry. In early performed each month in 2011. years, it was difficult to find suppliers With an area of 9,601,400 km2 China is There is a constant exchange of who shared Cheminova’s consciousness one of the largest countries in the world. knowledge between Cheminova’s QC for CSR. Now we can see that more The area available for agriculture is laboratories in Shanghai and in Denmark and more Chinese companies are pay- about 1.1 billion hectares, but only 128.2 in order to ensure the reliability of QC ing a lot of attention on CSR issues. Of million hectares of land is cultivated. The results. All staff in the Shanghai QC la- course there is still room for improve- average farm size is 0.1 hectares. The boratory has an educational background ments. There are two drive forces for total population of China is 1.33 billion in chemistry and have also been well this development: The multinationals and around 700 million farmers live in the trained in laboratory health and safety. like Cheminova push Chinese compa- villages. China has experienced Rural Po- The chemical waste from the quality nies a lot on the improvement of CRS, pulation Urbanization at a rate of almost control laboratory is collected by profes- and central government pushes a lot 1% per year over the past decade. sional waste treatment companies for mainly because of the heavy influence The Chinese economy has grown proper destruction. of chemical production on the environ- consistently by more than 10% for the ment. We will keep pushing suppliers last 20 years. Agriculture makes up 17.1% in China for them to understand and of the Gross Domestic Product (GDP), but comply with our CSR standards. keep going down with 1% reduction in recent years. The total domestic agrochemical market in China is around 3.9 billion USD in 2010, corresponding to about 8.8% of the world market. The market in China for plant protection products is divided in this way: Insecticides 36%, fungicides 23%, herbicides 29%. Yolanda Ke, Head of the Shanghai China increased the total grain output QC laboratory, and Klaus Nygaard from 132 million tons to 546.41 million Jørgensen, coordinating analytical tons of food grains from 1950 to 2010. chemist from the QC laboratory in The population increased from 0.55 Denmark, are constantly exchanging billion to 1.30 billion in the same period. know-how on analytical methodo- China can almost support the whole coun- logy and quality control procedures try based on the domestic grain output. to ensure reliability of QC results from the Shanghai laboratory. 22 Corporate Social Responsibility Report 2011 Sales and product stewardship for plant protection products

Information about safe and correct use of the products is part of the marketing.

Cheminova’s sales in 2011 Overview of which class I ready-to- In 2011, training and guidance on correct Cheminova’s sales of plant protection use products Cheminova sold in and safe use of Cheminova’s products products include supplies of both active 2011 and where have been an integrated part of the daily ingredients and ready-to-use formula- Country Product marketing activities in developing coun- tions to more than 100 countries. In tries. Labelling and instructions for use, 2011, Cheminova’s subsidiaries handled Australia Methyl parathion EC personal contact with distributors and 89% of sales. Methomyl EC users plus participation in campaigns For further comments on sales, are some of the tools employed to pro- distribution between product types and Omethoat EC mote safety. The quarterly reporting to geography, please refer to Auriga’s an- USA Methyl parathion EC the CSR steering committee on product nual report. stewardship from countries and regions Spain Fenamiphos EC has been continued in 2011. Twice a year Sales of the most toxic products EC = Emulsion concentrate the Global Executive Committee meets With the phase-out of the most toxic to discuss CSR activities. products in developing countries an Product stewardship During 2011, the insecticide endo- important milestone has been reached The underlying principle for Cheminova’s sulfan has been phased out of Chemi- in Cheminova’s CSR work as all these stewardship of plant protection products nova’s product programme. Endosulfan products have been replaced by less is risk reduction. The cornerstones are: has never been produced by Cheminova toxic plant protection products. Products 1. Observance of national legislation but has been sold as third party product belonging to WHO’s class Ia ’extremely concerning approval, marketing and in few countries. The substance has hazardous’ and Ib ’highly hazardous’ are sale of plant protection products in been included in the Stockholm Conven- no longer sold to farmers in developing all countries where Cheminova’s tion list of persistent organic pollutants, countries. products are sold. In addition, export and therefore it has to be phased out is subject to EU legislation and the globally during a no more than five year WHO classification of pesticides rules of the Rotterdam convention period starting in 2012. based on acute risk concerning ”prior informed consent” The following highlights the risk Class Ia Extremely hazardous (PIC), reducing activities in the developing Class Ib Highly hazardous 2. Affiliation to the rules of FAO’s Code countries Brazil and India where the last of Conduct, class I products were sold in 2010. Class II Moderately hazardous 3. Membership of national/regional Class III Slightly hazardous trade associations engaged in risk Brazil reduction in connection with the use In Brazil, Cheminova’s sales of methyl U Unlikely to present acute of plant protection products, and parathion in the form of WHO class hazard 4. Phase-out of all products belonging I products have stopped and been In 2011, the total sales to all countries to WHO Class Ia and Ib outside the replaced by less toxic insecticides, such of class I products were reduced to USA, Canada, EU, Australia and as micro-encapsulated methyl parathion appr. 1% of total Cheminova sales. The Japan. (WHO class II) used in the growing of breakdown of products by countries can soybeans and cotton at professional be seen in the adjacent table. large-scale farms. Sales of this product Salg fordelt på rige Salg fordelt på rige Corporate Social Responsibility Report 2011 23 og fattige lande og fattige lande 2010 2011

2011

High income countries 52%

Upper middle income countries 36%

Lower middle income countries 12%

Low income countries 0% Salg fordelt på rige Salg fordelt på rige og fattige lande og fattige lande 2010 2011

2010

High income countries 56% Countrywise sales broken down by national income Upper middle income countries 33% Sales of plant protection products broken Lower middle income countries 11% down according to the World Bank categories of gross national income per capita. Low income countries 0% Source: World Development Indicators, database World Bank

exclusively takes place in large pack- demonstrations and hand out of perso- Safe-use film:The safe-use film has aging which are not attractive to small- nal protection kits and first aid kits. The been improved and adjusted according scale farmers, and sales are limited to activities are carried out in collaboration to input from subsidiaries. Version 3.0 is states where soybeans and cotton are with local authorities wherever possi- now available on the Marketing Portal as grown by professional farmers. ble. The programme is being continued well as on DVD. Furthermore, a special Cheminova’s Brazilian subsidiary is while new CSR activities are focused on IT-version of the film is available to sub- connected to a hotline open around the village projects described on page 10. sidiaries on inquiry, making it possible clock for reporting and first aid informa- to adjust the sound recording and add tion in case of spillage and accidents. Other developing countries speak and/or subtitles in local language. In 2011, a series of 89 farmer and In all other developing countries sales Subsidiaries are constantly encouraged customer meetings with all together and marketing was in 2011 accompanied to upload safe-use material to the Portal 4,394 participants were conducted. The by safe use activities as mentioned un- and during the year presentations, po- meetings had a.o. focus on safe and der the four bullet points above. These sters, film, etc. have been uploaded. correct use of plant protection products activities are continued at the same Activities in Indian villages: The CSR and personal protection equipment. level or higher despite the completed projects covering a variety of activities Cheminova’s subsidiary has continued phase-out of the most toxic products. In in several Indian villages have been suc- its partnership in the organisation inpEV future, the attention to avoid misuse or cessfully launched. Further information whose purpose it is to promote proper inappropriate product handling vs. FAO’s can be found in the article on page 10. disposal of used crop protection product Code of Conduct will be continued. Activities among small-scale banana containers. The organisation reports a producers in Brazil: Along with educa- more than 9% increase in the tonnage Follow-up on targets tion and training in safe use, the new of containers collected in 2011. In ad- FAO’s Code of Conduct: FAO’s Code application technology has been intro- dition to these activities projects among of Conduct has been included in the duced and come into use by the far- banana farmers have continued, see general sales conditions applicable as mers. The project in the state of Goias page 13. of January 1, 2012. The sales conditions is proceeding satisfactorily. Because of have been implemented by Cheminova flooding in the project area in the state India A/S. The subsidiaries are in the pro- of São Paulo, the work with introduction The extensive safe use programme with cess of translating to local languages of environmentally friendly control of training af dealers and farmers has been and discussing adjustment to country fungi along streams has been delayed. further expanded to include more than specific requirements in the new sales See the article on page 13. 350,000 persons in 2011. The program- conditions. me also includes posters, video shows, 24 Corporate Social Responsibility Report 2011

India (left): Seminar on plume reduction. Production United Kingdom (right): Production of micro nutrients.

The Cheminova group owns the following production companies We are constantly working on im- Name Production Country Location Chemical synthesis, formulation Cheminova A/S Denmark Rønland, Lemvig proving environment, health and and filling safety at all production sites. Chemical synthesis, formulation Cheminova India Ltd. India Panoli north of Mumbai and filling Stähler Deutschland Formulation and filling Germany Stade west of Hamburg GmbH & Co. KG San Colombano, Althaller Italia Formulation and filling Italy south of Milano Headland United Formulation and filling Deeside, North Wales Agrochemicals Ltd. Kingdom Cheminova MFG Pty. Formulation and filling Australia Wyong north of Sydney Ltd.

Data on environment, health and safety surroundings. In 2010, Cheminova Note 3: Several companies have incre- for the above companies appear from has entered into an agreement with ased the quantity of ordinary waste for the table on the next page. Well over the Danish Environmental Protection recycling. Typically, we are dealing with half of the activities measured as turn- Agency to dismantle the deposit over iron and metal, corrugated cardboard over of raw material takes place at the a period of time. Dismantling of the and plastic. company in Denmark and almost 1/3 at deposit which will take place during a Note 4: The heavy reduction in the the company in India. All producing com- number of years will be initiated in 2012. quantity of ordinary waste for depositing panies are included in the statements is due to lower production and changed for 2009, 2010 and 2011. Comments on the development product mix in Denmark. More detailed data for the produc- from 2010 to 2011 Note 5: The quantity of hazardous tion in Denmark (the green accounts) The development from 2010 to 2011 waste for recycling has increased signifi- including historical data is available is characterized by the fact that the cantly which is due to higher production, on the website of the Danish Environ- production measured on consumption change of cleaning methods and change mental Protection Agency. The data of raw materials has been reduced of classification of raw materials in the have to be updated every year not later by 12% with large fluctuations from United Kingdom as well as changed than May 31. (http://www.mst.dk/NR/ company to company. For instance the product mix in Germany. rdonlyres/DDF068A0-2986-46F6-86C5- consumption of raw materials in Den- Note 6: Behind the increase in 096249DAD5B2/0/Cheminova_VVM_ud- mark has been reduced by 27% while quantity of hazardous waste for incine- videlse.pdf). in India it has increased by 36%. As the ration are large variations from company Detailed information for the other production in Denmark represents 53% to company. Generally, changes in companies included in the statement of the total production the changes in product mix is the primary reason for can also be found on www.cheminova. Denmark result in essential changes of the increase. com. And so can the applied accounting the reported figures. The consumption Note 7: The quantity of hazardous principles. of raw materials expresses the volume waste for depositing is primarily due to The significant emissions of treated of the production and therefore it has, the activities in India where we have waste water take place from the produc- all things being equal, an influence on all succeeded in reducing the quantity of tion plants in Denmark and India where other parameters than accidents at work waste in spite of increased production. it is lead to the North Sea and Gulf of and absenteeism due to accidents. Note 8: In 2011, all companies had Khambhat, respectively. Note 1: In 2010, consumption of fewer spillages than in 2010. In more On Cheminova’s factory site in Den- natural gas has changed from 385 to companies, attitude and behaviour has mark is an authorized waste deposit 386 GWh. The change was caused by been in focus in order to reduce the containing sulphur, sand and concrete correction of an error in the statement. number of spillage. contaminated with low concentrations Note 2: The emission of nitrogen with Note 9: The largest reduction in of organophosphorous chemicals and the waste water in Denmark has incre- number of accidents is seen in Denmark mercury. The deposit is confined and ased because of lower degree of treat- where in 2010 there were unusually does not constitute any danger to the ment during the Christmas holidays. many accidents at work. Frequency and Corporate Social Responsibility Report 2011 25

Fact box: Environment, health and safety

Unit Note 2 011 2010 2009

3 Energy savings Water consumption: Cooling Million m 31 34 46 98% of the energy consumption Processes + ord. consump. Thousand m3 682 821 885 in the producing companies of the Energy consumption: Natural gas GWh 1 337 386 447 group takes place in Denmark and Electricity GWh 67.2 76.9 79.9 India where active ingredients for the plant protection products are Fuel oil GWh 2.7 1. 8 16.3 manufactured by means of chemi- Materials: Raw material consumption 1000 tonnes 103 116 137 cal synthesis which is very energy Discharge of waste water: COD Tonnes 206 289 154 intensive. The main part of the Nitrogen Tonnes 2 31 16 19 electricity is produced with natural gas as primary energy source, the Phosphorus Tonnes 9 9 11 remainder is produced with oil as Air emissions: Particles Tonnes 4.5 5.2 5.5 primary energy source. There is an CO2 1000 tonnes 71 79 106 ongoing process of energy optimi- Ordinary waste: Recycling 1000 tonnes 3 3.7 3.3 3.3 zation at the production plants in Denmark and India where the Incineration 1000 tonnes 0.47 0.47 1. 11 largest saving potential is. In the Depositing 1000 tonnes 4 15.8 21.1 34.2 period 2009-2011 energy saving proj- Hazardous waste: Recycling Tonnes 5 579 145 486 ects with a total effect of 29 GWh/ Incineration 1000 tonnes 6 7. 4 6.8 14.4 year have been implemented. Depositing 1000 tonnes 7 2.28 2.39 2.44 Spillage Number 8 19 70 35 Accidents Number 9 20 34 15 Accident frequency – 9 4.0 8.8 3.6 Absence from work due to accidents – 10 0.9 3.6 3.2

absence is defined in the accounting • COD emission from Technical Division attitude and behaviour in connection principles and intermediate plant will in 2011 be with planning and completion of work. Note 10: Fewer and less serious acci- reduced by 5% per produced volume. Since then further appr. 200 emplo- dents have resulted in a large reduction Comment: COD emission was redu- yees have been involved in the work. in absence from work due to accidents ced by 8% per produced volume. Australia Follow-up on targets for 2011 Denmark • Absenteeism due to accidents at In the following, the targets are stated • Certifying of the company’s environ- work will be reduced in 2011. with the degree to which they have mental management system in rela- Comment: There was no accident at been fulfilled. tion to ISO 14001 and OHSAS 18001 work in 2011, but an accident in 2010 will be maintained in 2011. caused large absenteeism in 2011. India Comment: External audit was accom- • Certifying according to ISO 14001 will • In 2011, the production in Technical plished in September, and three minor be maintained in 2011. Division will be certified in relation to nonconformities were corrected. Comment: Audit accomplished in Sep- ISO 14001 and OHSAS 18001. Certificates have been maintained. tember with minor nonconformities Comment: Certification accomplished • In 2011, the energy consumption will which have been corrected. mid-2011 as planned. continuously be optimized through • In 2011, the company’s policy for • Energy consumption at Technical retention of the certified energy safe behaviour will be updated, and Division to be reduced by 3% per management system according to DS/ training programmes for all employees produced volume in 2011. EN 16001 and compliance with the will be accomplished. Comment: Energy consumption re- Danish Energy Agency’s demands on Comment: Accomplished as planned. duced by 36% per produced volume. energy management according to DS/ Training accomplished by external The large reduction is due to an EN 16001. supplier. essentially higher production volume Comment: External audit was ac- • The quantity of waste for recycling than originally planned together with a complished in September, and one will be increased by 5%. fall in energy consumption of 3.5%. minor nonconformity was corrected. Comment: Measured in absolute • Water consumption at Technical Di- Certificate maintained. quantities, target has not been vision will in 2011 be reduced by 5% • In order to achieve fewer accidents reached because of an essential fall in per produced volume. and errors at work a programme for production and changed product mix. Comment: Water consumption redu- education and training of employees’ The part of waste for recycling has ced by 32% per produced volume. attitude and behaviour will be organi- been reduced from 80.2% of the total The large reduction is due to an zed and accomplished. quantity of waste in 2010 to 77.6% in essentially higher production volume Comment: In May, about 80 emplo- 2011. Measured in relation to con- than originally planned together with yees with relation to the Health & sumption of raw materials, quantity only 2% increase of water consump- Safety organisation were trained to of waste for recycling has increased tion. take a dialogue with colleagues about from 4% in 2010 to 9% in 2011. 26 Corporate Social Responsibility Report 2011 REACH – EU chemicals regulation

REACH – EU’s chemicals regulation in REACH terminology are named ”in tured at our subsidiary Headland in the came into force on June 1, 2007. The place isolated intermediates” and 14 United Kingdom. registration work itself for the many substances are named ”transported As regards the substances which have chemicals has been divided into three isolated intermediates”. For these stand been registered there is an on-going phases of time. The first phase in- that the data requirement is limited work preparing risk assessments for the cluded chemicals which the companies as the substances are handled only in different applications of the chemicals. produced or imported in quantities of closed systems and therefore are not These must be attached to the safety more than 1,000 tonnes per year. This spread in the environment. In addition, data sheet and forwarded to the cus- phase was completed at the end of full registration of seven substances tomer in connection with deliveries of 2010. Phase two, which we are in now, are expected. Five of these substances the product for any application. is running until the middle of 2013. It are so-called flotation agents used in comprises chemicals which the compa- the mining industry to separate metals nies produce or import in quantities of from the ore when it has been crushed. more than 100 tonnes per year. These flotation agents are manufactured During this period Cheminova at Cheminova’s factory in Denmark. The expects to make 31 registrations. two additional substances are micro Ten of these are substances which nutrients used as fertilizer and manufac-

Packagings with transport labels including warning symbols. Corporate Social Responsibility Report 2011 27 Supplier management

Today, the supplier management is in our purchasers are trained in making in each region except for Region Interna- principle fully integrated in Cheminova’s CSR screenings of potential new sup- tional where a person will be appointed purchasing policy, both at the parent pliers from a CSR point of view when in 2012. company Cheminova A/S and at the visiting existing suppliers. At actual In India, where we have a consider- subsidiaries. and formal audits of suppliers they are ably larger organisation than in the other Purchase at the parent company is assisted by the Safety, Health, Environ- subsidiaries plus own manufacturing of organisationally divided in two department & Quality department. active ingredients, the daily CSR work ments. One department takes care of The Project Sourcing department has is fully handled locally by our Indian so-called ordinary purchasing managed technical employees trained to handle all subsidiary. by the Purchasing Department, the aspects of our CSR policy. In the departments at headquarters other is the Project Sourcing Depart- If we look at the supplier manage- and in the subsidiaries, the CSR work ment which deals with outsourcing of ment work in the subsidiaries the CSR takes place in close co-operation with services rendered in the form of toll work in relation to ordinary purchasing the global Safety, Health, Environment production of active ingredients for is managed by the subsidiaries them- & Quality department who is respon- plant protection and toll production of selves in the countries where we have sible for preparation of CSR policies formulation and packaging of active producing companies. In relation to ser- and continuous training of staff in CSR ingredients. vices rendered in the form of primarily themes. Furthermore, it is supervised In the purchasing department our toll formulation and filling, the CSR work that the company’s own organisation is Supplier Code of Conduct is an inte- is coordinated by a technical responsible following the CSR policies. grated part of purchasing contracts, and person who has in 2011 been appointed

In October 2011, representatives from Cheminova made a CSR audit at a supplier north to Shanghai in China. 28 Corporate Social Responsibility Report 2011 Human Resources

Continued activities on integration of our company values in the daily business promote job satisfaction as well as the strategic business goals.

Mission, vision and values challenge in a global organization with our CSR report, conducted a range of Implementation of Cheminova’s mis- widely different cultures and the result- interviews with local staff from our sion, vision and values has been an ing differences in ways of interpretation operations in India, Mexico and Russia, important focus area in 2011 and will of rules and regulations. A useful tool and with selected collaborators in these continue to be so for the coming years. is an efficient and trustworthy whistle- countries. Part of the goal has been to We have an important mission, which blower function, which is well-known get an update on the knowledge about means that everyone in the organization, to the entire organization. Cheminova’s our anti-corruption policy with our own regardless of job, background, company, Code of Business Principles was up- employees and with our collaborators, culture etc. has every right to be proud dated in 2011 with a description of the and to ensure that anti-corruption is of making a contribution to improved liv- new whistleblower function as an effort high on the agenda in our operations in ing conditions for the world’s population. to make the function known throughout these countries. The result of the survey Our values have been discussed the organization. An updated leaflet with is that the knowledge about our anti- throughout the organization during our Code of Business Principles and the corruption policy and the procedures in the year, and we have collected good new whistleblower function has been relation to this is generally satisfactory examples on how our values live in exposed widely to the entire organiza- among our employees, but that im- our daily activities everywhere in the tion. provement in certain areas is desirable. organization. The true value of the com- The whistleblower function, which With respect to our business partners, pany values plays out when they make is managed by an independent exter- the result is less clear cut, some have a a difference in our behavior. We have nal supplier, has proven to work as good knowledge and some have a very therefore communicated such examples intended. The setup provides everyone limited knowledge. Another purpose of globally. During the year we have com- with an opportunity to point at poten- the survey activity was to ensure that piled the best specific examples on the tial breaches to our Code of Business anti-corruption is high on the agenda, impact of the values on daily activities, Principles, and it ensures everyone a and we expect improvement in situa- and these are to be published as a respectful and competent treatment by tions where the knowledge is limited. leaflet. Editing of the leaflet has been the supplier. There have been two calls completed and it will be published, at during 2011. Competence development first in Danish and English, in 2012 to be It is very important that we currently distributed to all employees. In relation Anti-corruption develop our skills and competences to distribution, we have set targets for Cheminovas Code of Business Prin- throughout the global organization. In how the leaflet shall be distributed and ciples have been distributed to all this way we make sure that employees disseminated, see p. 31. subsidiaries. The anti-corruption policy and managers are able to handle the has been highlighted in subsidiaries in tasks that follow from the strategic Code of Business Principles and countries where the risk of corruption is goals in a manner that is in compliance whistleblower function considered high. with our values and our Code of Busi- Ensuring compliance with the accepted As a supplement to this we have ness Principles. rules and regulations is essential for with help from the accounting company A wide range of competence develop- any organization. This is in particular a PriceWaterhouseCoopers, who reviews ment activities for employees as well as Corporate Social Responsibility Report 2011 29

Mission We help improve quality of life for the world’s population by supplying products that help farmers increase yields and quality of crops to satisfy the global demand for food, feed, fiber and energy.

Vision We create results for our customers by being a sustainable and innovative world-class supplier of a broad range of quality crop protection products. Value creation shall match the best among peer companies to the benefit of all stakeholders.

Values • We achieve ambitious goals • We are innovative • We decide and we act In 2011, Cheminova was awarded with the ”Apprenticeship Award of the Year” • We recognize results after nomination by the company’s union representatives. The award was given • We are good corporate citizens for the speical initiative for adult apprentices in the production department.

for managers was carried out in 2011 As a parallel activity, the participants Follow-up on goals throughout the global organization. The receive individual coaching, and they The whistleblower function has been activities included individual training carry out a strategic task for their disseminated globally to all employees courses as well as activities for depart- company. The programme is designed during 2011. Code of Business Prin- ments, companies or management to provide the best opportunity for per- ciples with a description of the whistle- teams. sonal development for the participants blower function has been prepared in An example is a manager training and at the same time provide the best 13 languages and was distributed to all day, which was arranged for all 130 possible contribution to the business. employees in the global organisation. managers with staff responsibility in The programme will form a basis for The whistleblower function has also the Danish organisation. The goal was further discussion of global initiatives been exposed on the intranet in Den- to strengthen the competences of the with respect to the global HR Strategy, mark as well as in the global newsletter. individual manager in the process of cf. action plan for 2012. Mission, vision and values have been making the Cheminova values come exposed during the year in the global alive and be clear to the employees in Education awards newsletter, the intranet in Denmark and their daily work. The managers were Cheminova’s Danish operation received the employee magazine in Denmark. also trained in how to break down goals two education awards in 2011. “Ap- During the year we have compiled and KPIs for the individual department prenticeship Award of the Year” (Årets specific examples on the impact of the and support the development of a PraktikPladsPris) and a local “Apprentice values on daily activities for the purpose stronger performance culture. of the Year” award (Årets lærling i Midt- of publication as a leaflet. Edition of the In addition to the global initiatives to og Vestjylland). The first mentioned leaflet has been completed in 2011, and embed our mission, vision and values award was presented to the manage- the leaflet will be published in 2012. in our daily activities, the CSR initiatives ment of the production facilities on Anti-corruption: We have dissemi- have resulted in a number of separate June 8 based on a nomination from the nated the anti-corruption policy through activities, e.g. our subsidiary in United union representatives at Cheminova. three subsidiaries in 2011: Activities in Kingdom had an initiative on prevention The background for rewarding Chemi- India included two sales offices and of cross contamination, and an internal nova was the special initiative for adult two suppliers, activities in Mexico in- training course on how communication apprentices in the production. 65 out of cluded the subsidiary and two suppliers and good management practice support 224 employees are being trained. Ten and activities in Russia included two the values and the Code of Business percent of all process operators in Den- sales offices and two suppliers. Principles was held at the production mark have been trained at Cheminova. facility in Australia. This is an impressive development, We have developed a talent/manage- which was rewarded with the Appren- ment training programme in collabora- ticeship Award of the Year. tion with five other international com- Further a laboratory technician ap- panies. The programme is being tested prentice received the reward as the in 2011/2012. The programme consists Apprentice of the Year in Mid-West of five modules with concluding exams. Jutland. 30 Corporate Social Responsibility Report 2011 Action plan

Village projects

Focus Area Target/activity Timetable Success criteria India Extention of the “Aakash Ganga” water conservation project 2012 Further 25 hectares included in the project Continuation of the project “Saheli” on women empowerment on 2012 Further five villages included in the project to safety, health and livelihood cover totally nine villages Impact assessment of village projects to be expanded with two 2012 Villages have been identified and assessment model villages accomplished Brazil: Develop- The project among small-scale banana farmers in the state of Goias 2012-13 Project keeps momentum, and focus on quality of ment of village will be continued the crop is established community based on environmentally A project on community development plus safe and environmentally 2012 Project has been initiated friendly control of friendly control of plant diseases will be launched among small-scale banana diseases banana farmers in an environmentally sensitive area in the state of São Paulo

’Helping you grow – Chemistry with care’

Focus Area Target/activity Timetable Success criteria Chemistry with care With selected years from the period 2000-2010 as baseline, an index 2012 An index based on controllable data is available will be prepared illustrating the area of farm land where the crops and thus the food production is protected by Cheminova’s products With selected years from the period 2000-2010 as baseline, an index 2012 An index based on controllable data is available will be prepared illustrating the quantity of Cheminova plant protection products used per area unit With selected years from the period 2000-2010 as baseline, an index 2012 An index based on controllable data is available will be prepared illustrating selected, essential resources used by Cheminova to manufacture plant protection products compared to the area of farm land treated Development of at least 20 formulations with a low content of 2012-14 Recipes filed at Cheminova A/S or Cheminova’s volatile organic solvents subsidiary in India Lower average toxicity of newly developed formulations measured 2012-14 By each year the average WHO classification of through the classification of the formulation newly developed formulations must be lower than the average classification of Cheminova’s plant protection products. Only plant protection products, where the active ingredient is owned by Cheminova, are included

Production

Focus Area Target/activity Timetable Success criteria India Energy consumption for the production of three large products to be 2012 Total energy consumption for production of the reduced by 3% per produced volume products reduced by at least 3% per produced volume compared to 2011 Frequency and seriousness of incidents and accidents at work to be 2012 In each of the categories incidents at work (i.e. reduced by 5% incidents without absenteeism after 48 hours) and accidents at work (i.e. accidents with absenteeism after 48 hours) both frequency and absenteeism have been reduced by 5% compared to 2011 The production at the Intermediate Division to be certified in relation Mid-2013 Certification company has forwarded confirmation to ISO 14001 and OHSAS 18001 of certification Corporate Social Responsibility Report 2011 31

Focus Area Target/activity Timetable Success criteria Denmark Re-certification of the company’s environmental management sys- 2012-14 New certificates received in 2012. tem according to ISO 14001 and OHSAS 18001 Retention of certificates in 2013-14

Certification of the company’s energy management system accord- 2012-14 New certificate received in 2012. ing to ISO 50001 Retention of certificate in 2013-14 Education and training of employees in better attitudes and safer 2012-13 At the end of 2012 at least 50% of all employees behaviour according to the programme SAFE is spread to the global must be involved. In first half of 2013 all employ- organisation ees must be involved Quantity of hazardous waste from production of a fungicide to be 2012 Quantity of hazardous waste measured in relation reduced by half to the produced volume has been reduced by half. Reduction demonstrated in relation to average for 2009 and 2010 Energy consumption for the production of an insecticide to be 2012 Energy consumption in relation to produced vol- reduced by 8% ume has been reduced by at least 8% in relation to 2009 Australia The water consumption in production cleaning processes will be 2012 Investigation undertaken and associated action minimized as part of the plant’s water saving programme plan implemented It will be ensured that external contractors work in accordance with 2012 Dissemination of a Contractor HSE Manual to our demands on health, safety and environment 80% of the contractors regularly utilised by site

REACH - EU chemicals regulation

Focus Area Target/activity Timetable Success criteria Chemical safety Registration of the pre-registered substances that have to be regis- 2013 Receipts for the registrations received tered before the end of 2013

Supplier management

Focus Area Target/activity Timetable Success criteria Global organisation In Region International, the supplier management will be rooted with 2012 The person has been appointed and trained for a person with a technical background the task

Human Resources

Focus Area Target/activity Timetable Success criteria Mission, vision and Maintain knowledge of the company’s mission, vision and values 2012 The leaflet is available in Danish and English and values Activity: A leaflet with stories about the company’s vision will be has been communicated to all employees through distributed to all employees of the group. the management The leaflet will be published in Danish and English at first Implementation of values to all employees in Denmark 2012 The meetings/activities have been conducted Activity: All managers have at meetings or other activities worked with implementation to the employees Accomplishment of an employee survey in the global organisation. 2013 Employee survey accomplished and reported. The The investigation will give a survey of the employees’ knowledge employee survey is expected to show an improve- of the company’s knowledge. The survey may be part of another ment in relation to the above activity (implementa- investigation tion in Denmark in 2012) Global HR strategy Preparation of a global HR strategy to ensure increased and more 2012 The strategy plan has been worked out with structured focus on Human Resources in the group. The strategy will proposals of HR activities to be rolled out in the consist of elements which support Cheminova’s business strategy individual years up to 2015. The activities planned up to 2015 and it is expected to be rolled out during the next years for 2012 have been accomplished 32 Corporate Social Responsibility Report 2011 Management statement

Anton Bro Rico T. Christensen Mats Edh Kurt Pedersen Kaalund Senior Vice President, President, President, President & CEO Development & Registration Region North America Region International

Jaime Gomez-Arnau Niels Morten Hjort Jesper Barslund Jacobsen Berit Nørskou Pedersen President, Senior Vice President, Senior Vice President, Vice President, Region Europe Production & Logistics Finance & Support HR Development

On February 20, 2012, the company’s top management, the Global Executive Committee (GEC), considered and approved the CSR report for 2011. Cheminova’s CSR work is founded on UN’s Global Compact and GRI (Global Reporting Initiative) which are internationally approved codes together with Responsible Care which is the chemical industry’s own code. Internally, The CSR work is rooted in Cheminova’s Code of Business Principles and the practical application as described in a Global QC and CSR Manual. GEC has the overall responsibility for Cheminova’s subsidiaries and regions as well as all the company’s other activities, Cesar Rojas Jens Thorsen including CSR. President, Vice President, It is GEC’s view that the CSR report for 2011 provides an Region Latin America Portfolio Management accurate picture of the company’s CSR activities in the areas described. Corporate Social Responsibility Report 2011 33 Assurance Statement

Assurance Statement for Chemi- our work, to express a conclusion on the been assessed from inquiries concern- nova A/S’s stakeholders from information contained in the CSR Report ing procedures for calculation and independent auditor regarding goal attainment and financial measurement of the concrete data. We have assessed Cheminova A/S’s data as well as on the Report as a COP Furthermore, we have performed techni- 2011 CSR Report for the purpose of Report. cal accounting analyses of reported data expressing a conclusion on the descrip- and have reviewed selected documenta- tions of goal attainment and non- Scope of our work tion. financial data contained in the Report as We planned and performed our work We have reviewed the Report with a well as its capacity as Communication in accordance with the International view to assessing its informative value of Progress Report (COP Report) oc- Auditing Standard ISAE 3000 (assur- in relation to expectations for a COP Re- casioned by Cheminova A/S’s affiliation ance engagements other than audits or port. Through interviews with Manage- with the UN Global Compact. review of historical financial information) ment and selected key employees, we for the purpose of obtaining moderate have gained insight into Management’s Criteria applied assurance that commitment and status of embedding The criteria for CSR-related goal attain- • the status of attainment of estab- of the UN Global Compact and Chemi- ment are stated in the 2010 CSR Report, lished CSR goals for 2011 on pages nova A/S’s values with relating specific in which goals as well as success 6-7 is in accordance with the listed activities. criteria for the focus areas, Product criteria for CSR goals, which were We have noted the strategic manage- Stewardship, Village Projects, Produc- published in the 2010 CSR Report; ment level of ambition and have on a tion, EU’s New Chemical Policy, Supplier • the environmental and occupational sample basis tested the existence of Management and Human resources, are health and safety data stated on local management awareness. presented. page 25 have been recognised in ac- As agreed with Cheminova A/S Man- The criteria for preparation of non- cordance with the criteria stated for agement, we have not performed any financial data contained in the CSR preparation of the non-financial data procedures relating to the reliability of Report are evident from the accounting of the CSR Report; the GRI reporting for 2011. policies described on the company’s • the CSR Report in its entirety is website. These contain information consistent with the Company’s CSR Conclusion concerning which of the Group’s busi- activities and progress with a view to Based on our review, nothing has come nesses and activities are included in supporting the UN Global Compact. to our attention that causes us to be- the types of data reported as well as lieve that the descriptions covering the Management’s reasons for selecting The assurance obtained is limited as status of the attainment of CSR goals environmental and occupational health compared to that of an audit. Our work for 2011 on pages 6-7 are not accurate. and safety data. has therefore, based on an assessment Furthermore, nothing has come to of materiality and risk, primarily included our attention that causes us to believe Responsibilities inquiries concerning goal attainment, that the environmental and occupa- Cheminova A/S Management is respon- including on a judgemental sample-basis tional health and safety data stated on sible for preparing the CSR Report, obtaining documented confirmations page 25 have not been recognised in including for setting up registration and regarding goal attainment from local accordance with the criteria stated for internal control systems with a view to managements, interviews with selected preparation of the non-financial data of ensuring reliable reporting. Company key managerial employees responsible the CSR Report. Management is furthermore respon- for the goal attainment and review of We confirm that the CSR Report sible for specifying acceptable reporting selected documentation. serve as Cheminova A/S’s COP Report, criteria as well as selecting data to be Moreover, our interviews included and based on the total work performed, collected. the production sitescompanies in India nothing has come to our attention Moreover, Cheminova A/S Manage- and Denmark, and we paid visits to the that causes us to believe that the CSR ment is responsible for preparing a subsidiaries sales companies in India Report in its entirety is not based on COP Report presenting Cheminova and China. specific activities and thus Cheminova A/S’s progress in respect of supporting The criteria stated concerning state- A/S’s progress with a view to supporting the UN Global Compact sustainability ment of environmental and occupational the UN Global Compact. principles. health and safety data, as described in Our responsibility is, on the basis of the accounting policies, have primarily

Copenhagen, March 12, 2012 PricewaterhouseCoopers Birgitte Mogensen Jens Pultz Pedersen Statsautoriseret Revisionspartnerselskab State Authorised Public Accountant MSc (Engineering), Diploma (Business Economics) 34 Corporate Social Responsibility Report 2011 GRI reporting 2011

The page numbers refer to the relevant sections of this report, and AR refers to page numbers in Auriga’s Annual Report 2011.

F = Fully reported; P = Partially reported.

Information about the company Links and comments Page

1. Strategy and analysis 1. 1 Statement from the president, CEO and the Global Executive Com- http://www.auriga.dk/en/finance/annual_reports/ F 3 and 32 mittee 1. 2 Description of essential impacts, risks and opportunities http://www.auriga.dk/en/finance/annual_reports/ - AR 2011 p. 14 F 16 and 19 2. Organisational profile 2.1 Name of the organization - F 1 2.2 Primary brands, products, and/or services http://www.cheminova.com/en/products__innovation/products__ F 9 innovation.htm 2.3 Operational structure of the organization, including main divisions, http://www.auriga.dk/en/auriga_industries/corporate_structure/ F - operating companies, subsidiaries, and joint ventures 2.4 Location of organization’s headquarters - F 44

2.5 Number of countries where the organization operates, and names http://www.auriga.dk/en/auriga_industries/corporate_structure/ F - of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form http://www.auriga.dk/en/investor_relations/share_information/ F - share_capital.htm 2.7 Markets served http://www.auriga.dk/en/finance/annual_reports/ F 22

2.8 Scale of the reporting organization http://www.auriga.dk/en/finance/annual_reports/ AR2011 p. 4 + F - notes p. 34-55 2.9 Significant changes during the reporting period regarding size, http://www.auriga.dk/en/finance/annual_reports/ F 4 structure, or ownership 2.10 Awards received in the reporting period - F 29 3. Report parameters Aspect: Report profile

3.1 Reporting period for information provided http://www.cheminova.com/en/sustainability/data_and_summa- F - ries/accounting_policies_csr.htm 3.2 Date of most recent previous report March 29, 2011 F - 3.3 Reporting cycle http://www.cheminova.com/en/sustainability/data_and_summa- F - ries/accounting_policies_csr.htm 3.4 Contact point for questions regarding the report or its contents - F 2 Report scope and boundary 3.5 Process for defining report content - F 4 3.6 Boundary of the report - F 4 3.7 Limitations on the scope or boundary of the report. - F 4 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, n.a. F - outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations 3.9 Data measurement techniques and the bases of calculations, http://www.cheminova.com/en/sustainability/code_of_conduct/ F - including assumptions and techniques underlying estimations ap- management_approach_to_csr_management.htm plied to the compilation of the indicators and other information in http://www.cheminova.com/en/sustainability/data_and_summa- the report ries/accounting_policies_csr.htm Corporate Social Responsibility Report 2011 35

Information about the company Links and comments Page

3.10 Explanation of the effect of any re-statements of information provid- n.a. F - ed in earlier reports, and the reasons for such re-statement 3.11 Significant changes from previous reporting periods in the scope, n.a. F - boundary, or measurement methods applied in the report 3.12 Table identifying the location of the Standard Disclosures in the - F 34 report 3.13 Verification - F 33 and 34 4. Governance, commitments and engagement

Aspect: Governance

4.1 Governance structure of the organization, including committees http://www.auriga.dk/en/auriga_industries/management_02/ F 35 under the highest governance body responsible for specific tasks, board_of_directors.htm such as setting strategy or organizational oversight http://www.auriga.dk/en/auriga_industries/management_02/execu- tive_board.htm 4.2 Indicate whether the Chair of the highest governance body is also http://www.auriga.dk/en/auriga_industries/management_02/ F - an executive officer board_of_directors.htm http://www.auriga.dk/en/auriga_industries/management_02/execu- tive_board.htm 4.3 For organizations that have a unitary board structure, state the http://www.auriga.dk/en/auriga_industries/management_02/ F - number of members of the highest governance body that are board_of_directors.htm independent and/or non-executive members http://www.auriga.dk/en/auriga_industries/management_02/execu- tive_board.htm 4.4 Mechanisms for shareholders and employees to provide recom- - F 5 mendations or direction to the highest governance body 4.5 Linkage between compensation for members of the highest gover- http://www.auriga.dk/download/generalforsamling/2011/remunera- F - nance body, senior managers, and executives (including departure tion_policy_2011.pdf arrangements) and the organisation’s performance (including social http://www.auriga.dk/en/auriga_industries/corporate_governance/ and environmental performance) report_on_corporate_governance.htm 4.6 Processes in place for the highest governance body to ensure http://www.auriga.dk/en/auriga_industries/corporate_governance/ F - conflicts of interest are avoided report_on_corporate_governance.htm 4.7 Process for determining the qualifications and expertise of the http://www.auriga.dk/en/auriga_industries/corporate_governance/ F - members of the highest governance body for guiding the organisa- report_on_corporate_governance.htm tion’s strategy on economic, environmental, and social topics 4.8 Internally developed statements of vision, values, principles etc. http://www.auriga.dk/en/auriga_industries/mission_and_vision/ F 28 and their implementation http://www.cheminova.com/en/sustainability/code_of_conduct/ code_of_business_principles.htm http://www.cheminova.com/en/sustainability/code_of_conduct/ supplier_code_of_conduct.htm 4.9 Procedures of the Board for overseeing the organisation’s eco- http://www.auriga.dk/en/auriga_industries/corporate_governance/ F - nomic, environmental and social management and performance report_on_corporate_governance.htm http://www.auriga.dk/en/finance/annual_reports/ - AR 2011 p. 15 4.10 Processes for evaluating the Boards own performance http://www.auriga.dk/en/auriga_industries/corporate_governance/ F - report_on_corporate_governance.htm http://www.auriga.dk/en/finance/annual_reports/ - AR 2011 p. 15 Aspect: Commitments to external initiatives

4.11 Explanation of whether and how the precautionary approach or - F 3, 14,16 principle is addressed by the organisation and 22 4.12 Externally developed economic, environmental, and social charters, - F 38 and principles, or other initiatives to which the organisation subscribes 42 or endorses 4.13 Memberships in associations - F 9 Aspect: Stakeholder engagement

4.14 List of stakeholder groups engaged by the organizations - F 5 4.15 Basis for identification and selection of stakeholders with whom to - F 5 engage 4.16 Approaches to stakeholder engagement, including frequency of There is a current and open dialog with our stakeholders F 5 engagement by type and by stakeholder group 36 Corporate Social Responsibility Report 2011

GRI reporting 2011, continued

Information about the company Links and comments Page

4.17 Key topics and concerns that have been raised through stakeholder http://www.mst.dk/NR/rdonlyres/DDF068A0-2986-46F6-86C5- F 16 and engagement, and how the organisation has responded 096249DAD5B2/0/Cheminova_VVM_udvidelse.pdf 18 Climate change and potential harm from plant protection products are focus areas among our stakeholders

Indicators of company’s CSR Links and comments Page Economics

Management approach F -

Aspect: Economic performance

EC1 Direct economic value generated and distributed, including rev- http://www.auriga.dk/en/finance/annual_reports/ - AR 2011 p. 4 F - enues, operating costs, employee compensation, donations and and 34-55 other community investments, retained earnings, and payments to capital providers and governments EC3 Coverage of the organization’s defined benefit plan obligations http://www.auriga.dk/en/finance/annual_reports/ - AR 2011 p. F - 46-47 http://www.auriga.dk/download/generalforsamling/2011/remunera- tion_policy_2011.pdf Aspect: Market presence

EC7 Procedures for local hiring and proportion of senior management http://www.cheminova.com/en/sustainability/data_and_summa- F - hired from the local community at locations of significant operation ries/labour_practices.htm Environemnt

Management approach http://www.cheminova.com/en/sustainability/code_of_conduct/ F - management_approach_to_csr_management.htm Aspect: Materials

EN1 Materials used by weight or volume - F 25 Aspect: Energy

EN3 Direct energy consumption by primary energy source - F 25 EN4 Indirect energy consumption by primary source F 25 Aspect: Water

EN8 Total water withdrawal by source - F 25 Aspect: Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent http://www.cheminova.com/en/sustainability/related_articles/pro- F 19 to, protected areas and areas of high biodiversity value outside duction_sites_and_natural_resorts.htm protected areas EN12 Description of significant impacts of activities, products, and servic- http://www.cheminova.com/en/sustainability/related_articles/pro- F 19 es on biodiversity in protected areas and areas of high biodiversity duction_sites_and_natural_resorts.htm value outside protected areas Aspect: Emissions, effluents and water

EN16 Total direct and indirect greenhouse gas emissions by weight - F 25 EN21 Total water discharge by quality and destination - F 25 EN22 Total weight of waste by type and disposal method - F 25 EN23 Total number and volume of significant spills - P 25

Aspect: Products and services

EN26 Initiatives to mitigate environmental impacts of products and ser- http://www.cheminova.com/en/about_us/understanding_chemi- F 16 and vices, and extent of impact mitigation nova/safety_and_health.htm 22 Corporate Social Responsibility Report 2011 37

Indicators of company’s CSR Links and comments Page Labour practices and decent work

Management approach http://www.cheminova.com/en/sustainability/code_of_conduct/ F 5 management_approach_to_csr_management.htm Aspect: Occupational health and safety

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, Only for the manufacturing companies P 25 and number of work-related facilities by region LA8 Education, training, counselling, prevention, and risk-control pro- http://www.cheminova.com/en/sustainability/data_and_summa- F - grammes in place to assist workforce members, their families, or ries/labour_practices.htm community members regarding serious diseases Human rights

Management approach http://www.cheminova.com/en/sustainability/code_of_conduct/ F - management_approach_to_csr_management.htm Aspect: Freedom of assiciation and collective bargaining

HR5 Operations identified in which the right to exercise freedom of http://www.cheminova.com/en/sustainability/data_and_summa- F - association and collective bargaining may be at significant risk, and ries/labour_practices.htm actions taken to support these rights http://www.cheminova.com/en/sustainability/code_of_conduct/ management_approach_to_csr_management.htm Aspect: Child labour

HR6 Operations identified as having significant risk for incidents of child http://www.cheminova.com/en/sustainability/data_and_summa- F - labour, and measures taken to contribute to the elimination of child ries/labour_practices.htm labour http://www.cheminova.com/en/sustainability/code_of_conduct/ management_approach_to_csr_management.htm Aspect: Forced and compulsory labour

HR7 Operations identified as having significant risk for incidents of http://www.cheminova.com/en/sustainability/data_and_summa- F - forced or compulsory labour, and measures to contribute to the ries/labour_practices.htm elimination of forced or compulsory labour http://www.cheminova.com/en/sustainability/code_of_conduct/ management_approach_to_csr_management.htm Society

Management approach http://www.cheminova.com/en/sustainability/code_of_conduct/ F 42 management_approach_to_csr_management.htm Aspect: Community

S01 Impacts of operations on communities, including entering, oper- - F 5 ating, and exiting Aspect: Corruption

SO3 Percentage of employees trained in organisation’s anti-corruption http://www.cheminova.com/en/sustainability/code_of_conduct/ P - policies and procedures management_approach_to_csr_management.htm Aspect: Public policy

SO5 Public policy positions and participation in public policy develop- - F 5 ment and lobbying Product responsibility

Management approach http://www.cheminova.com/en/sustainability/code_of_conduct/ F 42 management_approach_to_csr_management.htm Aspect: Customer health and safety

PR1 Life cycle stages in which health and safety impacts of products http://www.cheminova.com/en/about_us/understanding_chemi- F - and services are assessed for improvement, and per-centage of nova/safety_and_health.htm significant products and ser-vices categories subject to such procedures Aspect: Product and service labelling

PR3 Type of product and service information required by procedures, http://www.cheminova.com/en/about_us/understanding_chemi- F 16 and percentage of significant products and services subject to such nova/safety_and_health.htm information requirements Covering all plant protection products 38 Corporate Social Responsibility Report 2011 UN Global Compact Progress report on the implementation of the principles of the UN Global Compact

Cheminova has supported the United Nations Global Compact since 2009. We support the endeavors to make globaliza- tion more socially and ecologically compatible and to raise standards in the fields of human rights, labour rights and environmental protection and in the fight against corruption. The following table shows the activities and management systems at Cheminova that support the 10 principles of the Global Compact and the results which were achieved in the period under review. Information on the Global Compact can be found at www.unglobalcompact.org.

Systems Measures 2011 Achievements 2011 Human Rights: Principle 1: Support of human rights Principle 2: Exclusion of human rights violations • Code of Business principles (p. 42) • In 2011, the knowledge of the company’s mission, vision and values will be • Executed (p. 7) • Supplier Code of Conduct (p. 42) spread and maintained among all employees of the group • CSR management of suppliers and toll • In 2011, the knowledge of the whistleblower function will be spread to all • Executed (p. 7) producers (p. 42) employees of the global organisation • Human Rights Position (p. 42) • The project ”Saheli” on women empowerment on safety, health and liveli- • Executed (p. 6) hood will be initiated in four villages in India in 2011 Labour Standards: Principle 3: Observance of the right to freedom of association Principle 4: Abolition of all forms of forced labour Principle 5: Abolition of child labour Principle 6: Elimination of discrimination • Code of Business Principles (p. 42) • In 2011, the knowledge of the company’s mission, vision and values will be • Executed (p. 7) • Supplier Code of Conduct (p. 42) spread and maintained among the employees of the group • CSR management of suppliers and toll • In 2011, FAO’s Code of Conduct shall be included as a part of the general • Executed (p. 6) producers (p. 42) sales conditions. Compliance with FAO’s Code of Conduct will be an inte- • Labour Protection Position (p. 42) grated part of Cheminova’s general sales conditions • FAO’s Code of Conduct (p. 42) • The modular films with safety instructions will be extended to more coun- • Executed (p. 6) • HSEQ management systems (p. 42) tries and markets. In 2011, these films will be available for Cheminova’s marketing and CSR employees • Production at the Technical Division in India will in 2011 be certified in rela- • Executed (p. 6) tion to OHSAS 18001 Environment: Principle 7: Precautionary environmental protection Principle 8: Specific commitment to environmental protection Principle 9: Diffusion of environmentally friendly technologies • Code of Business Principles (p. 42) • In India, the project ”Aakash Ganga” on water conservation will be initiated • Executed (p. 6) • Responsible Care (p. 42) in 2011 • Supplier Code of Conduct (p. 42) • The project among small-scale banana farmers in the state of Goias in • Executed (p. 6) • HSEQ management systems (p. 42) Brazil will be continued in 2011-12 • CSR management of suppliers and toll • A new project on community development and safe and environmentally • Implementation plan producers (p. 42) friendly control of plant diseases will be launched among small-scale is followed (p. 6) • FAO’s Code of Conduct (p. 42) banana farmers in the state of São Paulo in Brazil in 2011. • The production at the Technical Division in India will in 2011 be certified in • Executed (p. 6) relation to ISO 14001 • The energy consumption at Technical Division in India will in 2011 be • Executed (p. 6) reduced by 3% per produced volume • The water consumption at the Technical Division and the intermediate plant • Executed (p. 6) in India will in 2011 be reduced by 5% per produced volume • The COD emission from the Technical Division and the intermediate plant • Executed (p. 6) in India will in 2011 be reduced by 5% per produced volume Corporate Social Responsibility Report 2011 39

Systems Measures 2011 Achievements 2011 Anti-corruption Principle 10: Measures to fight corruption • Code of Business Principles (p. 42) • In 2011, the knowledge of the whistleblower function will be spread to all • Executed (p. 7) • Anti-corruption Position (p. 42) employees of the global organisation • Supplier Code of Conduct (p. 42) • In 2011, communication of the company’s anti-corruption policy will be • Executed (p. 7) • CSR management of suppliers and toll accomplished in selected subsidiaries producers (p. 42) General CSR issues

• Code of Business Principles (p. 42) • The already initiated projects in the nine selected villages in India will be • Plan is followed (p. 6) • Responsible Care (p. 42) continued in 2011 and 2012 • FAO’s Code of Conduct (p. 42) • Impact assessments and implementation of specific improvements identi- • Plan is followed (p. 6) fied will be undertaken in two villages in India 40 Corporate Social Responsibility Report 2011 Glossary

Active ingredient: GC: OHSAS 18001: Active chemical in its pure or technical form. Gas Chromotography - a common type of International environmental certification chromatography used in analytical chemistry covering the working environment. Auditing: for separating and analysing compounds that Omethoate: Review of accounts. can be vaporized without decomposition. Insecticide among others used to control BNP: GDP: mites in Australia. GDP (Gross Domestic Product). Gross Domestic Product. Pesticides (plant protection products): Chemical synthesis: GEC: Collective name for insecticides, herbicides Proces, where chemical compounds react Global Executive Committee. Cheminova’s and fungicides. with each other so that new compounds are top management group. formed. PIC: Global Compact: Prior Informed Consent (Prior informed Class I product: A UN initiative giving ten general principles consent that has to be established before a A product , which according to WHO’s rec- for companies’ work with corporate social product from the PIC list is exported). ommended guidelines is classified as highly responsibility hazardous or extremely hazardous. Product stewardship: GRI: Overall description of responsible manage- CLP: Global Reporting Initiative with guidelines for ment of a company’s products. Classification, Labelling and Packaging. The reporting on CSR. CLP Regulation ensures that the hazards Ramsar areas: presented by chemicals are clearly com- HPLC: Wetlands where wildlife is protected ac- municated to workers and consumers in the High-performance liquid chromatography – a cording to the convention of wetlands of European Union through classification and very common analysis method of chemical international importance, particularly as labelling of chemicals. compounds. habitats for birds. COD: ISO 14001: REACH: Chemical Oxygen Demand - measure for the International environmental certification Registration, Evaluation and Authorisation content of organic compounds in water. covering the surrounding environment. of Chemicals (Common EU regulation on documentation requirements concerning KPI: CSR: chemicals). Corporate Social Responsibility. Social, Key Performance Indicator. Registration data: environmental and ethical demands made Low VOC: between companies, customers, interested Test results and documentation that must Low Volatile Organic Compound, defined as parties and collaboration partners. be submitted to the authorities in order to maximum 20% evaporation at 115°C in 60 obtain sales permissions. Emulsifiable concentrate: minutes cf. Estimation of Volatile Emission Mixture of a liquid active ingredient, solvents Potential of Pesticides by Thermogravimetry, Responsible Care: and surfactants that enable the product to California Department of Pesticide Regla- Objectives concerning responsible conduct, be diluted with water to a low concentrate tion, February 9, 2005. adhered to by Cheminova. spray fluid. Marketing Portal: SAFE: FAO: An internal website with useful information Safe Attitude (behaviour) For Everybody. The UN’s Food and Agriculture Organisation. concerning marketing. Saheli: FAO’s Code of Conduct: Methomyl: Saheli is formed taking the first two letters FAO’s international guidelines concerning Insecticide, in Mexico mostly used in cotton from each of the three core areas Safety, the distribution and use of pesticides. and vegetables. Health and Livelihood. Fenamiphos: Methyl parathion: Suspension concentrate: Insecticide used against soil-living pests Insecticide mostly used in cotton. An active ingredient in solid form suspended (nematodes). Microcapsules (microcapsule formula- in water with surfactants which enables the product to be diluted with water to a low Formulation: tion): concentrate spray liquid. Active ingredient to which has been added Fluid product where the active ingredient is accessory agents that make the product encapsulated in microscopic capsules which Third-party products: ready-to-use as control agent. are dispersed in water. Sales products not produced by Cheminova 3 but bought from other suppliers. Fossil fuel: Nm : Coal, oil and gas. Normal cubicmeter (volume at standard WHO: pressure and temperature). World Health Organisation. Corporate Social Responsibility Report 2011 41 42 Corporate Social Responsibility Report 2011 Special references

Previous CSR reports have included a number of appendixes in full length. This year we have decided to publish some of these appendixes only on Cheminova’s website. Below is shown where these documents can be found.

Reference Explanation Where to find it Ownership and organisation An overview of Cheminova’s global organisation, http://www.cheminova.com/en/about_us/man- regions, ownership and anchoring of CSR in the agement_and_structure/corporate_structure.htm organisation

Responsible Care The European Chemical Industry Council’s (CEFIC) http://www.cheminova.com/en/sustainability/ Responsible Care programme for continuous improve- production/responsible_care.htm ment within safety, health and environment

Code of Business Principles A description of the company’s Code of Business http://www.cheminova.com/en/sustainability/ Principles which must be complied with by all em- code_of_conduct/code_of_business_principles. ployees and which support responsibility in relation to htm management, cooperation and society

Principles for Code of Conduct for suppliers The fundamental principles which Cheminova’s suppli- http://www.cheminova.com/en/sustainability/ ers have to comply with code_of_conduct/supplier_code_of_conduct.htm

CSR Accounting Principles The principles for data collection on environment, http://www.cheminova.com/en/sustainability/ safety and health data_and_summaries/accounting_policies_csr. htm

FAO’s Code of Conduct Voluntary international standards of responsibility http://www.fao.org/ag/magazine/mso35C.pdf and behaviour concerning distribution and use of pesticides

FN’s Millennium Development Goals UN’s 8 goals for reduction of poverty before 2015 http://www.un.org/millenniumgoals/

Management approach to CSR Management Summary of principles and procedures on CSR http://www.cheminova.com/en/sustainability/ management code_of_conduct/management_approach_to_ csr_management.htm

Principles for good corporate management The statutory report on Corporate Governance 2011 http://www.auriga.dk/en/auriga_industries/ – comments on recommendation on good corporate corporate_governance/report_on_corporate_gov- management ernance.htm

Assessment of field tests in rice in India. Corporate Social Responsibility Rapport 2011 43 Cheminova is a global supplier of chemical crop protection. Cheminova A/S is 100% aHELPING company in YOU GROW owned by Auriga Industries A/S.

Cheminova A/S Headquarters: P.O. Box 9 Thyborønvej 78 Tel. +45 9690 9690 [email protected] DK-7620 Lemvig DK-7673 Harboøre Fax. +45 9690 9691 www.cheminova.com