2013 Corporate Social Responsibility (CSR) Report

HELPING YOU GROW

Corporate Social Responsibility Report 2013 OUR VISION We create results for our customers by being a sustainable and innovative world-class supplier of a broad range of quality crop protec- tionCorporate products. Value creation shall Social match the best among peer companies to the benefit of all stakeholders. Responsibility Report 2013

Contents

Introduction 3 Activities in Indian villages 24 About the report 4 Banana projects meet increasing participation from banana farmers in Brazil 26 Fulfilling CSR objectives for 2013 5 Production 28 CSR targets for 2014 and beyond 7 Supplier management 31 Cheminova’s business activities 8 People 32 Plant protection 9 Action plan 35 Product Stewardship 10 Action plan 36 Handling of used packaging 12 More information 38 Portrait of Cheminova Deutschland 14 Management statement 39 Plant protection products are investigated in a broad range of tests 16 Assurance statement 40 Chemical production in Denmark - UN Global Compact 41 75 years with environmental development 18 GRI Reporting 2013 43 Openness and dialogue 20 Special references 48 Chemistry with Care 21 Glossary 49 More plant protection, less chemistry, fewer resources 22

Date of issue: March 6, 2014. The report is a translation of the Danish original edition. Contact: Lars-Erik Kruse Pedersen ([email protected])

2 Corporate Social Responsibility Report 2013 Introduction

”Our long-term target is more plant protection through better products with less impact on the environment and reduced use of resources.”

Jaime Gomez-Arnau

Dear reader,

A key challenge is resting on farmers all Safety, sustainability and responsibility more detail with the purpose of providing over the world namely to provide enough are prerequisites for our business and a broader impression of our activities. food for the growing human population. daily conduct in our global organization. The demand for the agricultural produce, Corporate social responsibility is about Our employees are well known for their food, feed and fiber will be further incre- addressing such questions. technical skills and great commitment asing in the years to come. which is reflected in a continuous im- Our CSR strategy is ambitious and points provement culture covering all our ac- Our mission is to supply plant protection at increased food production through tivities. It is therefore my hope that the products to help farmers improve yields more plant protection with less chemi- present report will illustrate how our ac- and quality of their crops. Our business stry and fewer resources. In short: Hel- tivities in CSR have led to progress on a is based on continuous development of ping you Grow – Chemistry with Care. number of challenges and dilemmas in new and improved products to be manu- 2013. factured and supplied to farmers in more Again in 2013 a dialogue with Chemino- than 100 countries. However, manufac- va’s many stakeholders has given valua- Jaime Gomez-Arnau ture and use of needed chemical prod- ble input and inspiration for targets and CEO ucts admittedly have a potential to leave activities. Cheminova A/S an undesired impact on humans as well as the environment. Our business - like In addition to specific reporting on fulfill- most other human activities - is not with- ments on targets the report also contains out such challenges and dilemmas. articles that feature selected subjects in

Corporate Social Responsibility Report 2013 3 About the report

This report provides a status on Chemi- nova’s work within the area of Corporate Social Responsibility (CSR) in the calen- dar year 2013 and thereby fulfills the reporting requirements set out in Section 99a of the Danish Financial Statements Act (Årsregnskabsloven) in accordance with the exception in paragraph 8. The present report constitutes in full the communication of progress in relation to the UN Global Compact. 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 is employees, the authorities, shareholders, customers and suppliers as well Members of the CSR committee are Rune Søndergaard, Director, Executive Support & Com- as any individuals and organizations who pliance, Søren Nørby Pedersen, Vice President, Safety, Health, Environment & Quality, Niels may have an interest in Cheminova. Morten Hjort, Senior Vice President, Production & Logistics, Jens Thorsen, Senior Vice Presi- dent, Portfolio Management, Jakob Lyngsø Andersen, Senior Vice President, Human Resour- ces & Communication, Uffe Stephansen, Manager, Safety & Health, and Lars-Erik Pedersen, It is our intention that the report with Vice President, Corporate Communication. its detailed articles on specific activities from 2013 will provide the reader with Focus areas have been selected by the Additional information on Cheminova’s insight and understanding of the scope CSR committee with the purpose of pro- CSR activities including progress on the of our CSR work, and how these activities viding an informing and systematic repor- 2013 focus areas and the targets for 2014 are an integrated part of the day to day ting concerning essential points of our is available on our home page www.che- business of the company. CSR activities. minova.com.

Global Compact and Global Reporting The inspiration for selecting the specific Dilemmas and shared responsibility Initiative (GRI) issues addressed in the present report It is Cheminova’s mission to contribute to Cheminova has supported UN’s Global is based on input and feedback from the world’s food supply. Efficient agricul- Compact since 2009, and this report the stakeholders which have shown an ture is one of the prerequisites for achie- provides an update on our progress un- interest in Cheminova’s CSR activities ving the UN Millennium Development der each of the ten principles of Global throughout the year. Goals, which among other things are Compact. GRI indicators are reported at about reducing hunger and poverty and level B and give a systematic overview of Content of the report improving public health. Nevertheless, our activities. Both reportings are inde- The report includes facts and short sec- Cheminova faces a number of dilemmas pendent sections of the CSR report. tions on fulfillment of targets. Further- as a supplier of products to societies and more, the report contains detailed ar- countries with diverse conditions parti- Organization of the CSR work ticles on progress in selected focus areas cularly on safety and correct use of the Organizationally, the CSR work is rooted from 2013 and special initiatives with products. As a company we have a shared in Cheminova’s day-to-day top manage- importance to our business area. The responsibility to improve environmen- ment, the Global Executive Committee CSR targets and focus areas for 2014 and tal and working conditions, especially in (GEC), that defines the scope of CSR ac- onwards are presented as an overview connection with our own production in tivities and approves the CSR report. The table and as a detailed action plan for the developing countries, but also through CSR committee undertakes coordination individual focus areas. supplier management and product ste- of the daily work and reporting with refe- wardship. The CSR report describes how rence to the GEC. we address such issues.

4 Corporate Social Responsibility Report 2013 Fulfilling CSR targets for 2013

Overview of targets and fulfillment. Fulfillment of the specific areas is described in the paragraphs ’Follow up on targets’ in the individual sections of the report.

Target Fulfillment Village projects India: In 2013, further 25 acres will be included in the project Aakash Project extended by 101 acres in the states Karna- Ganga – conservation of rain water that otherwise would be lost taka and Andhra Pradesh through run-off India: In the Saheli project on women empowerment on safety, The project Saheli continued and new activities health and livelihood establishment of self-help groups will be sup- supported by Cheminova ported India: The effect of the project activity will be evaluated for two vil- Impact assessed. Exit strategy established lages and a plan will be made how the project can continue without the participation of Cheminova Brazil: The project among small-scale banana farmers in the state Momentum of the project kept and dialog with of Goias will be continued in 2013 and so will the dialogue with the the ministry continued as required Ministry of Agriculture with the purpose of establishing a closer cooperation Brazil: The project on safe and environmentally friendly control of Momentum kept and area expanded plant diseases will in 2013 be extended to more banana farmers in an environmentally sensitive area in the state of São Paulo Helping you Grow – Chemistry with Care More plant protection: An index illustrating the area of farm land Index implemented where the crops and thus the food production is protected by Che- minova’s products will be implemented in 2013 Less chemistry: An index illustrating the quantity of non-sustainable Index implemented chemicals applied in Cheminova’s plant protection products per area unit will be implemented in 2013 Less resources: An index illustrating the consumption of fossil fuel for Implemented. The index covers the total energy manufacturing products at Cheminova’s production sites in India and consumption Denmark will be implemented in 2013 At least 20 formulations with low content of volatile organic solvents 14 formulations were developed in 2013 (12 for- will be developed in the period 2012-14 mulations in 2012) Lower average toxicity of newly developed formulations measured The formulations developed in 2013 have a lower through the classification of the formulation in the years 2012-14 average toxicity compared to existing formulations Product Stewardship India: Cheminova takes part in a project where the opportunities to Cheminova participated in the project initiative return used packaging are examined with focus on environmentally by CropLife India correct disposal Production India: The energy consumption for the production of two large Energy consumption was reduced by 2.5% com- products to be reduced by 2% per produced volume in 2013 pared to 2012 India: The content of COD in the treated waste water will be reduced COD emission was reduced by 32% in 2013 com- by 3% in 2013 pared to 2012 Corporate Social Responsibility Report 2013 5 Target Fulfillment Production India: The frequency and severity of incidents at work will be re- Frequency was reduced from 19.9 to 18.0 acci- duced by 2% in 2013 dents per million manhours (9.5%), severity was reduced from 14.13 to 11.10 mandays per million manhours (21%) India: In 2013, the production at the Intermediate Division will be Certification achieved certified in relation to ISO 14001 and OHSAS 18001 Denmark: Operation of the biological waste-water treatment plant Two waste-water streams changed in 2013. Pro- will be reassessed in 2012-15 so that the potential of the plant is ject runs according to schedule utilized in the best possible way Denmark: The quantity of waste per produced unit and Cheminova’s Quantity of waste per produced unit increased total costs for treatment of hazardous waste will per year in 2012-14 4% - target was a decrease of 10%. Costs have de- be reduced by 5% and 10% respectively creased by 13% - target was 19% Australia: Obtain certification of the company‘s environmental man- Management system prepared and ready for cer- agement system according to OHSAS 18001 in 2014 tification in 2014 Australia: In 2013, the waste-water treatment will be improved, and Studies on the waste water are completed. Sub- renewed permit for discharge will be applied for mission to authorities planned for 2014 United Kingdom: In 2013, environmental and safety conditions will Work accomplished as planned. Necessary au- be reassessed and application for changes will be sent to the authori- thority approvals achieved ties Germany: In 2013, a filter to reduce the emission of dust from the Dust filter installed production will be installed Supplier management In 2013, a number of the company’s employees will be trained to 18 employees from the global organization were audit suppliers trained in supplier audit Human Resources In 2013, a global policy and procedure describing how Cheminova Global Recruitment policy and recruitment pro- can attract the best match for each position will be established cedure are prepared and communicated

In 2013-14, a new appraisal system will be developed and imple- Appr. 80% of all appraisals globally have been car- mented. The system will among others be linked to the KPIs and val- ried out. Planned activities continue in 2014 ues of the company. All employees will have minimum one appraisal per year In 2013, visible and successful career paths will be established glob- All job positions from above a certain level are ally. Also a new title and benefit structure will align role and respon- classified and the basis for defining career paths, sibilities of each specific key position bonus programs and benefits has been established and will be rolled out in 2014 During 2013-14, a mapping for establishing a country based clas- Initiatives to strengthen anti-corruption accom- sification of risk of corruption is carried out. Training activities for plished as planned. Planned activities continue in selected employees are planned 2014 In Denmark the program SAFE will be continued to ensure that all 75% of employees are trained, the target was employees are educated and involved by the end of the year 100% ultimo 2013. The program continues in 2014

6 Corporate Social Responsibility Report 2013 CSR targets for 2014 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 36.

Village projects India • Good agricultural practices and the use of low dose chemicals are promoted in 2014. • The Saheli project on women empowerment on safety, health and livelihood will be continued in 2014. • The water conservation project Aakash Ganga will be expanded further in 2014. Brazil Production Supplier management • The project among small-scale banana India • In 2014, a global audit management farmers in the state of Goias and the • The content of COD in the treated system for filing audits and sharing ex- dialogue with local agronomists will be waste water will be reduced in 2014. perience and knowledge will be estab- continued in 2014. lished. • The production at the Formulation Di- • The project with focus on safe and en- vision 1 & 2 will be certified according Human Resources vironmentally friendly control of plant to ISO 9001, ISO 14001 and OHSAS • In 2014, it is required that at least once diseases among banana farmers will be 18001 in 2014-15. continued and expanded in 2014. a year all employees and their direct Denmark superior conduct a performance and • In 2014, a project with axil application • Operation of the biological waste- development review. among banana growers in the state of water treatment plant will be reasses- • In 2014, a global Employee Engage- Santa Catarina will be initiated. sed in 2012-15 so that the potential of ment Survey will be prepared. the plant is utilized in the best possible • In 2014, a base line for measuring gen- Helping you grow – Chemistry with care way. der diversity in the general workforce • Index I: More plant protection, to be • Consumption of steam at a plant for and managerial positions will be pre- reported as a rolling 12 months index. pared. recovery of an organic solvent will be • Index II: Less chemistry, to be reported reduced. • In Denmark, implementation of the as a rolling 12 months index. program SAFE will be continued in Australia 2014. The purpose of the program is • Index III: Fewer resources, to be re- • Obtain certification of the production to foster a positive safety culture and ported as a rolling 12 months index. according to OHSAS 18001 in 2014. behavior. • At least 10 formulations with low con- • Reassessment of environmental and • In 2013-14, mapping will be performed tent of volatile organic solvents to be safety performance to meet an up-to- on the basis of which a classification developed in 2014. date high standard in 2014. of country-based corruption risks can • Lower average toxicity of newly devel- be made in order to educate selected United Kingdom oped formulations measured through employees. classification of the formulations du- • Continuous improvement of occupatio- ring 2012-14. nal safety and health.

Corporate Social Responsibility Report 2013 7 Cheminova’s business activities

Mission: Vision: Values: We help improve quality of We create results for our life for the world’s population customers by being a sus- by supplying products that tainable and innovative help farmers increase yields world-class supplier of a and quality of crops to satisfy broad range of quality crop the global demand for food, protection products. feed, fiber and energy. Value creation shall match the best among peer companies to the benefit of all stakeholders.

Increased yield from the field means more food.

8 Corporate Social Responsibility Report 2013 Plant protection

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

The framework for the company’s busi- sumption with the growing middle class. of the products is described on Chemi- ness activities is Cheminova’s Code of One of the consequences of this will be nova’s website. Furthermore, an article Business Principles and Cheminova’s mis- an increasing need to protect the crops on page 16 offers an insight into the sion, vision and values. These support which falls well within Cheminova’s mis- methods used to investigate the proper- and are consistent with the UN Global sion and business area. For example as ties of the plant protection products with Compact, the European Chemical Indu- seen in an impartial report from Novem- regard to reducing the risk of harmful stry Council’s (CEFIC) Responsible Care ber 2013 published by Humboldt Forum effects on the learning ability. These cir- program and the FAO Code of Conduct. In for Food and Agriculture e.V. (HFFA). Here cumstances are included in the authori- addition, Cheminova is a member of vari- it is shown that productive agriculture in ties’ risk assessment which is the basis of ous global, regional and local professio- Europe contributes essentially to food approving the products. nal organizations like for instance Crop- safety, resource-efficiency, financial sta- Life and resistance management groups bility, improved bio-diversity and reduced In addition to ready-to-use plant protec- under CropLife. CO2 emission (http://hffa.info/index.php/ tion products, Cheminova also supplies resources/download-publications/publi- active ingredients to industrial customers Need for plant protection cations/working-paper-5.html). for further processing to produce plant UN’s Agriculture and Food Organization, protection products. Moreover, we also FAO, estimates that by 2050 70% more Products manufacture and sell a number of fine food than today has to be produced – The company primarily produces herbi- chemicals for industrial use as well as mi- on roughly the same agricultural area, cides, insecticides and fungicides. The cronutrients for agriculture. which is already under cultivation. The products are sold mainly as ready-to-use yield per hectare should increase signifi- plant protection products under our own Read more about the activities in Auriga’s cantly just to keep pace with the growing brands, own registrations (use permits) Annual Report on www.cheminova.com. population and the increasing food con- and labels. The work underlying approval

Healthy crops is the visible result of plant protection.

Corporate Social Responsibility Report 2013 9 Product Stewardship

Information about correct use of the products increases the safety of the users.

Reduction of risks are covered by our stewardship activities Overview of which class I ready-to-use The underlying principle for Cheminova’s - as an example the herbicide paraquat, products Cheminova sold in 2013 and stewardship of plant protection products which we have already phased out from where they were sold usage in backpack sprayers. According is risk reduction. The cornerstones are Country Product observance of national legislation con- to the WHO, paraquat may be very haz- Australia Methomyl EC cerning approval, marketing and sale of ardous if the concentrated product is in- plant protection products in all countries gested or spread on the skin. By the end Omethoate EC where Cheminova’s products are sold. of 2014 this product will be phased out Spain Fenamiphos EC from Argentina and Mexico, and in the In addition, export is subject to EU le- EC = Emulsion concentrate gislation and the rules of the Rotterdam future paraquat will only be sold under convention concerning ’prior informed the same restrictions as we have in force consent’ (PIC). Furthermore we comply for the WHO class I products. Brazil with the rules of FAO’s Code of Conduct, In Brazil, Cheminova’s sales of methyl pa- and we are members of national/regional Similar to previous years, our products rathion in the form of WHO class I prod- trade associations engaged in risk reduc- are used in more than 100 countries. ucts have stopped and been replaced tion in connection with the use of plant by less toxic insecticides, such as micro- protection products. Further, we have For further comments on distribution encapsulated methyl parathion (WHO phased out products belonging to the between product types and geography, class II ‘moderately hazardous’) used in World Health Organization (WHO) Class please refer to Auriga’s Annual Report on the cultivation of soybeans and cotton Ia ”extremely hazardous” and Ib ”highly www.cheminova.com. at professional large-scale farms. Sales hazardous” outside the USA, Canada, EU, of this product exclusively take place in Australia and Japan. Sales of the most toxic products make large packaging which are not attractive up less than 1% of sales to small-scale farmers, and sales are li- Cheminova’s sales in 2013 After the previous year’s phase-out of mited to states where soybeans and cot- In 2013, training and guidance on correct the most toxic products in developing ton are grown by professional farmers. and safe use of Cheminova’s products countries sales have been replaced by have been an integrated part of the daily less toxic plant protection products. Cheminova’s Brazilian subsidiary is con- marketing activities in developing coun- nected to a hotline open around the tries. Labels and instructions for use, per- In 2013, the total sales to all countries of clock for reporting and first aid informa- sonal contact with distributors and users class I products made up less than 1% of tion in case of spillage and accidents. plus participation in campaigns are some total Cheminova sales. The breakdown of of the important tools employed to pro- products by countries can be seen in the In 2013, a series of 199 farmer and custo- mote safety. The quarterly reporting to table below. mer meetings with all together 4,950 par- the CSR committee on Product Steward- ticipants were conducted. The meetings ship from countries and regions contin- had a.o. focus on safe and correct use of ued in 2013. plant protection products and personal protection equipment. Also the so-called third party products, supplied from other companies and be- Cheminova’s subsidiary has continued its ing part of Cheminova’s product portfolio, partnership in the national organization

10 Corporate Social Responsibility Report 2013 for handling of used packaging (inpEV) posters, video shows, demonstrations ”The most toxic whose purpose it is to promote proper and hand out of personal protection kits disposal of used crop protection product and first aid kits. The activities are carried products have containers, see page 12. In addition to out in collaboration with local authorities been phased out these activities projects among banana wherever possible. The CSR activities in farmers have continued, see page 26. the villages are described on page 24. In from developing addition, the subsidiary takes an active countries.” India share in a two-year pilot project concer- The extensive safe use program with ning secure disposal of used packagings, training of dealers and farmers has been see the article on page 12. further expanded to include 665,000 persons in 2013. The program also includes

Information about correct use of the products is part of our marketing.

Corporate Social Responsibility Report 2013 11 Handling of used packaging

We participate in programs for organized collection and disposal of used packaging.

We support national initiatives for col- the Indian authorities recommend triple In addition to the above, Cheminova also lection and proper management of used rinse and puncture of used containers, participates in Campo Limpio programs in pesticide containers through national but an organized collection and proper Argentina, Colombia and Peru. industry associations all over the world. destruction would provide additional We consider this a very important stew- safety and be a major step forward. The US program for recycling of empty ardship activity. Most important is collec- containers is managed by the Ag Contai- ting the empty containers from the farms An important stewardship activity in ner Recycling Council (ACRC). The ACRC in an organized manner to avoid contami- many countries could celebrate its 20th anniversary in nation. In a number of countries the con- One of the most successful programs for 2012, and since the beginning this re- tainer management programs have been collection and recycling is the Brazilian cycling program has been extremely taken a step further and the rinsed pla- program, which has been run by the In- successful. The total plastic collected stic containers are shredded and the plas- situto Nacional de Processamento de and recycled in these past 20 years ex- tic material can be reutilized for certain Emballagens Vazias (inpEV) since 2002. In ceeds 57,000 tons. The recycled plastic types of products. 2005, the official National Campo Limpo goes into the manufacture of approved (Clean Field) day was introduced to help end-use products such as field drain A pilot project in India set focus on proper disposal of empty pipes. Cheminova’s subsidiary in the USA In collaboration with farmers CropLife containers from the farming commu- is a member of ACRC. India is running a 2-years pilot project nities. According to the inpEV website, on safe handling of empty pesticide con- almost 280,000 tons of empty pesticide Among other national programs which tainers in a village in Andra Pradesh. As containers have been collected in the Cheminova supports either directly or a member company we participate in period from 2000 to 2012, and more through national industry associations this important stewardship activity. The than 94% of the plastic containers are re- are the drumMUSTER in Australia, Clean empty containers are picked up in an or- cycled. Cheminova Brazil is a joint owner FARMs in Canada and the PAMIRA pro- ganized manner and transported safely of inpEV. gram in Germany. for proper destruction. So far approximately 40% of the used containers are Cheminova Mexico supports the ”Campo collected, and although this is a very Limpio” (or Clean Field) program which is good result, there is still potential for coordinated by the business association further improvements. Together with our Amocali C.A. We are sending two trucks industry colleagues in CropLife India we monthly to collect empty containers from are gathering useful experience through the collection centers. The empty pesti- the ongoing project, and the results will cide containers are transported to their be evaluated in 2014. final destination where they are processed for recycling or incineration. Che- There have been little tradition for col- minova Mexico has collected a total of lecting used pesticide containers in India, about 20 tons of empty containers. The and the ongoing project aims to avoid main objective for the program is eli- the unfortunate situations where used mination of empty pesticide containers containers are reutilized in the household from the farming communities in order to for storage of water or food. CropLife and avoid contamination of the environment.

12 Corporate Social Responsibility Report 2013 ”Cheminova Mexico has collected a total of about 20 tons of empty containers.”

Removal of empty containers from the farms contributes to safety and a better environment.

Corporate Social Responsibility Report 2013 13 Portrait of Cheminova Deutschland

Looking for new solutions.

Cheminova Deutschland in Stade pro- colleagues in Denmark. care in collaboration with seed breeding vides solutions for plant protection: Prod- companies. The expertise in the Stade ucts, technology and technical advice. The filling lines in Stade are flexible and formulation development team is highly The company has been focused on soluti- can handle container volumes from 40 valuable for Cheminova’s global business ons since 1900 when it was founded, and ml to 1,000 liter (IBC), and there is capa- in this segment. as a member of the Cheminova family city for packing of twin-packs where two since 2008 it is a front runner in seed care different products are packed together in With constant care solutions, manufacture of suspension one cardboard box. Prevention of cross contamination is in- concentrates and innovative packaging. tegrated in the work flow since a wide A broad range of formulation types can variety of formulations are produced in A modern formulation and filling facility be handled but the main focus is on sus- Stade, both Cheminova products and Cheminova Deutschland in Stade is the pension concentrates (SC) and special toll formulation for third parties. Clear- home office for marketing of Chemi- products for treatment of seeds. Suspen- ly visible red tags on pipes, valves and nova’s products in Germany, with sales sion concentrates are water based and handles show what is inside and provide representatives located in various parts easy to handle for farmers in the field. documentation for the level of cleaning of Germany. The site in Stade is also the The team in Stade has expertise with on the spot. A color code, where green is location of a modern formulation and fil- both scale-up and large-scale production for herbicides and red is for insecticides ling facility, which is supported by its own of SC formulations. and fungicides, is used as an additional quality control unit as well as a develop- measure to prevent cross contamination. ment team and a GLP laboratory, both of Cheminova Deutschland has developed a which work in close cooperation with the range of sophisticated solutions for seed The production in Stade operates under a quality management system which is certified according to ISO 9001:2008. Within the requirements for the ISO certification there is an encouragement for constant improvements of procedures, and an external auditor comes in on a regular basis and challenges the staff on progress and adherence to procedures, e.g. whether written instructions are available and followed, if they correspond to actual practice, and how processes are documented. Staff training is documented as an integrated part of the quality management system.

Out of the total of 153 permanent staff employed by Cheminova in Germany 130 are located at the Stade site. An additional 30- 40 contract workers work at the production site during peak season. The site in Stade has received several awards for education of laboratory technicians.

14 Corporate Social Responsibility Report 2013 The site in Stade has well established procedures for handling of chemical waste where normal procedures for Ger- man industry are followed. Waste water is collected in a tank and picked up once or twice a week by an authorized company for incineration. Cheminova Deutschland carries out inspections of the disposal chain in order to be able to present documentation if so requested.

Keeping an eye on energy consumption The energy consumption at the Stade site is in the form of natural gas for heating of buildings and electricity for the formulation process, i.e. for stirring and milling and also for melting of emulsifiers and semi-solid active ingredients.

Automated gates which open and close quickly have been installed to minimize the loss of heat from the production area and warehouses where trucks are dri- Development of new products demand a systematic support from the laboratories. ving in and out. This has led to significant energy savings, because gates are not left Seed care solutions open by truck drivers who want to save time. Cheminova Deutschland offers complete seed care solutions with product, technology and technical advice to seed breeding companies. The recipes include stickers About Cheminova Deutschland GmbH and powders to give the perfect seed dressing with no dust and freely flowing Cheminova Deutschland took on the Che- seeds. Tests are conducted to make sure the dressing has no adverse impact on minova name in 2013. The former Stähler germination. group was incorporated into the Chemi- nova group in the period 2008 to 2012. Timing is an important parameter in seed treatment and is therefore specified in The present facility in Stade was estab- the recipe as well as the ingredients. The formulation chemists work in close co- lished by Stähler in 1975. operation with the seed breeding companies, so the seed care solution is adjusted to fit the equipment to allow for the best product. The company was originally founded in 1900 by August Schacht who joined Drift of dust from treated seeds into neighboring fields presents a potential hazard forces with Oskar Stähler in 1913 and to crops and environment and is strictly regulated under German law. The seed the company Stähler GmbH was formed. care technology which is offered by Cheminova Deutschland helps seed breeders Stähler became a well-established brand produce seeds that comply with the requirements for dust reduction. in crop protection not only in Germany.

Corporate Social Responsibility Report 2013 15 Crop protection products are investigated in a broad range of tests

The authorities perform a comprehensive risk assessment before our products can be marketed.

When reading headlines in the media or health, agriculture and environment. For A wide range of tests articles in scientific journals one can from example in Europe the evaluations are Crop protection products are tested in time to time get the impression that crop carried out by EFSA (the European Food a range of standardized tests which are protection products are not properly in- Safety Authority), whereas the actual ap- meant to elucidate the possible health vestigated for possible effects on human proval is the responsibility of the Com- effects of the products – both acute and health. However, if one takes a closer mission Directorate General for Health chronic. Specific examples of chronic ef- look at the requirements for approval and Consumers (SANCO) and the indivi- fects are testing if rats develop cancer if of crop protection products, it becomes dual EU member states. Likewise in the they are exposed to the test substance clear that the possible effects on human USA it is the responsibility of the EPA (En- through their food for a period of two health are in fact thoroughly tested be- vironmental Protection Agency) in colla- years, or if the reproductive ability of fore the products are placed on the mar- boration with the individual states. the rat is affected if it is exposed to the ket and in connection with periodic re- test substance through the food. Specific evaluations. The approval of a crop protection prod- examples of acute effects are testing if uct is based on an assessment of the risk rats show signs of poisoning after inhala- A comprehensive risk assessment associated with use of the product, both tion of the test substance or if there are Crop protection products are used in in terms of impact on the environment clear signs of skin irritation after expos- farming and we can be exposed to the and on human health. In this article we ure to the test substance. products through our work, through want to give a short presentation of the residues in our food or by staying in or diversity of tests that are required as do- The test program is defined in the legis- near areas where the products are used. cumentation for the possible impact on lation and includes approximately 25 Before we as producers of crop protec- human health. In connection with re-as- specific investigations which are typically tion products are allowed to market our sessments or if more knowledge is nee- conducted on rats, but can be extended products, they must be approved by the ded in certain respects the requirements to include additional types of tests, if ad- authorities in the country, where they are for documentation may be increased. The ditional properties need to be studied. going to be used, and the approval is sub- results from the many different tests are The table below provides an overview of ject to periodic re-evaluation typically af- used to establish reference values which the tests, which are typically required by ter five or ten years. The approval process are used in the risk assessment. the authorities for approval of crop pro- will often involve authorities for human tection products.

Acute effects Long term effects Other effects Special studies Acute toxicity by digestion, inhala- Toxicity from daily intake Absorption, distribution, metabolism Effect of metabolites tion and through skin over longer period: and elimination in the body 3 months study 2 years study Skin and eye irritation Mutagenicity Endocrine disrupting properties Special impact on off-spring Sensitization Impact on reproduction Impact on immune system Effect on development of the nervous system Absorption through skin Cancer Damages to nervous system

16 Corporate Social Responsibility Report 2013 Our products are thoroughly tested and help farmers grow healthy food crops.

We do not conduct these tests our- In this way the authorities can set limits Crop protection products are thoroughly selves. The investigations are carried out by for how much of a substance one can safe- investigated specialized laboratories with permission ly digest every day through food from Organophosphate (OP) insecticides have to conduct toxicology testing, and the agricultural produce throughout an en- been on the market for more than 50 tests are performed according to inter- tire life without adverse effect on health. years and are among the most carefully nationally recognized guidelines, e.g. the studied substances, i.e. because manu- OECD harmonized guidelines for testing Special studies facturers throughout the years have re- of chemicals and guidelines for Good La- A test for impact on learning ability is sponded to society’s increasing demand boratory Practice. Interpretation of the among the special studies, which are for solid knowledge about the chemical observations made in such investigations used when there is a need to investigate substances in our surroundings. The OP and tests requires a high level of scienti- whether a given substance may have an insecticides have among other things fic knowledge and experience, e.g. to be impact on development of the central been tested for possible effects on the able to decide if a tumor is malign or be- nervous system. There are several stand- nervous system because of the specific nign or if an observed effect is caused by ard tests, one of which is the Morris Wa- mode of action for these substances. The the test substance or by other factors. ter Maze test where the ability to learn results from this type of testing are there- how to navigate through a water pool by fore included in the reference values Safety factors provide increased means of distal cues is tested. The test has which are used by the authorities, e.g. protection proven useful for assessment of whether the EPA in the USA, when they evaluate if Results from all the different tests are ta- the formation of new nervous junctions OP insecticides can still be used in a safe ken into consideration when the author- in the brain is adversely affected, in par- manner or when new uses are approved. ities, e.g. the EFSA and the EU Commis- ticular in the hippocampus which plays sion, establish the reference values to be a role in memory and the ability to navi- Several authorities who are involved in used in risk assessments. As a first step gate both in humans and in rats. approval of crop protection products it is established how the substances may make the evaluations on which the ap- impact human health, and as a second If rats, which have been dosed with the provals are based publicly available, e.g. step the magnitude of the doses which test substance, demonstrate impaired the USA and the EU. Information about are necessary to bring about the effect is ability to navigate and to learn how to the general requirements for documen- derived. A safe dose which does not re- find their way, this may be an indication tation as well as evaluations of individual sult in any health effects (the NOEL, No that the test substance have destroyed or crop protection products is available on Observed Effect Level) can also be de- decreased the ability of the rat to develop the EPA and EU Commission websites, re- rived from the individual tests. new nervous junctions in hippocampus. spectively. This means that the brain is adversely Literature: CFR Title 40 Part 158 Subpart F Data requirements The reference values are normally set at affected. The regulatory authorities may for pesticides – Toxicology. a level 100 times lower than the lowest require an investigation of whether ad- Commission Regulation (EU) 283/2013 Setting out data requirements for active substances in ac- NOEL found in the entire test program. verse effects may be due to exposure cordance with Regulation (EC) No 1107/2009 of the This additional safety factor is used to ac- of the foetus. For this purpose the test European Parliament and the Council concerning the placing of plant protec-tion products on the count for the difference between humans may be conducted in parallel with rat off- market. and laboratory animals and the fact that spring which has been dosed directly or NIH Morris water maze: Procedures for assessing spatial and related forms of learning and memory. not all humans are completely alike. All indirectly through dosing of the mother http://ec.europa.eu/food/plant/pesticides/in- together it provides a wide safety margin. animal during gestation. dex_en.htm http://www.epa.gov/pesticides/index.htm

Corporate Social Responsibility Report 2013 17 Chemical production in Denmark – 75 years with environmental development

Cheminova was founded in 1938 and over the past 75 years the percep- tion of appropriate treatment of waste from chemical production has changed significantly as the general knowledge about the impact on the environment has increased. Our ability to handle chemical waste in an environmentally responsible manner has also changed significantly.

Cheminova has had production plants in At that time it was in general accepted for various types of chemical waste, and Denmark for 75 years, and through all the as the appropriate way for disposal of Cheminova was also advised to use it for years we have developed the technology chemical waste and even recommended disposal of chemical waste. The dump for handling the environmental aspects by the authorities. In 1970 after the site was used until 1962. related to chemical production. When was taken over by another company, the Cheminova started chemical production question of a possible ground water con- In the 1980’es the major part of the in Denmark in 1938, it was at a time where tamination was raised. Cheminova of- buried chemicals was moved from the the scientific knowledge about treatment fered to establish a facility which could dump to a mine in Germany. Later on, in of waste emissions, both water, air and purify the ground water, with the inten- 2006, the regional environmental autho- solid waste, was rather limited. It was tion that the local authorities should rities (Region Midtjylland) have encap- thought that once emitted to the atmos- operate the facility. Unfortunately, it was sulated the contaminated area to avoid phere, to the sea or buried in the ground, not possible to come to an agreement. leaching to the North Sea. A pilot project any contaminants would be diluted or Today the task of pumping and treat- with in situ clean-up of contaminated simply disappear, e.g. the waste water ment rests with the regional authorities sand has been initiated by the regional from Copenhagen was lead directly into (Region Hovedstaden). authorities with support from the EU the sea at that time. Today we know that (North Pest Clean). Cheminova supports whatever waste we produce it will not Harboøre Tange in Western Jutland and the project by taking care of the exten- disappear without proper treatment. Groyne 42 sive sample analysis work which is neces- Cheminova moved the production facility sary for documentation of the clean-up. The early days of production to Harboøre Tange in 1953. The general Cheminova’s analytical laboratories have (1938 – 1953) recommendation for handling of waste many years of experience analyzing for Cheminova’s production in Denmark has from chemical production was still bury- the type of substances which are found taken place at four different locations. ing in the ground or discharge directly in the sand. By making scientific expertise The first site near Gladsaxe was only into the sea. This approach resulted in and laboratory capacity available we con- in operation for a few years and in rea- a contamination of the area where the tribute significantly to the project, since lity only for laboratory scale productions plant was first located and Cheminova is this work would otherwise represent a with limited generation of waste. The still engaged in remediation measures by significant cost for the project. production was moved to a new location pumping. The water is directed to Chemi- near Måløv in 1946, and the new plant nova’s waste-water facility. The general In the 1960’es the manufacturing plant allowed for large-scale production. The recommendation for burying chemical was established at its current location chemical waste from Cheminova’s pro- waste also lead to the establishment by at Rønland, in the beginning primarily duction of a wide range of chemical prod- the Danish state of a dump on the west for manufacture of OP insecticides. One ucts at the facility in Måløv was to some coast of Denmark. The dump is known challenge related to this production was extent buried at the manufacturing site. in Denmark as Groyne 42. It was a dump disposal of sulfur containing waste, and

18 Corporate Social Responsibility Report 2013 The large waste-water treatment plant was put into operation in 1988, The discharge of phosphorus to the North Sea (stated as tons of and it is a prerequisite for operation of the production plant. phosphorus per year) from Cheminova’s production plant decreased dramatically, when the biological waste-water treatment plant was taken into operation. The discharge was 7 tons in 2013 compared to 1,050 tons in 1980. a new deposit facility made of concrete have adapted so they are able to degrade publicly owned facility Nord was establis- was constructed at the plant site. Today, a wider range of organic contaminants hed in 1971 (then under the name Kom- sulfur is efficiently recovered directly by originating from a more diverse produc- muneKemi). All types of chemical waste means of modern technology and re- tion. The microbiological degradation is could be forwarded for safe disposal used in our production and for industrial combined with chemical pre-treatment against a fee, and Cheminova has since manufacturing of sulfuric acid, among and/or boiling of the process waste water, then made use of this option for safe dis- others. The old sulfur deposit at Rønland depending on the nature of the contami- posal of chemical waste which cannot be is no longer in use and the content has nants. The final discharge is carefully mo- properly treated at the current environ- been removed (see page 28). nitored to make sure the permitted maxi- mental facilities at Rønland. mum limits for individual compounds are A period with solutions not exceeded when the purified waste Environmental accounts The Danish legislation on protection of water reaches the North Sea, 500 m off In the same way as we publish our finan- the environment went into force in 1974 the coast of Jutland. A dedicated waste cial results with a balance of costs and with a requirement for companies to use water incineration plant was taken into earnings, we have also since 1995 pub- the best available technology. Over the operation in 1994 as a supplement to the lished our environmental results. We ac- following years, technology evolved and biological treatment plant. count for all emissions and products and Cheminova worked determinedly with match it up with the consumption of raw development of suitable technology and Air incineration materials. with establishment of environmental The process air incineration plant was plants to handle waste water and process also established during the late-eighties. The full environmental approval 25 years air from the production. The total invest- The process air is incinerated at high tem- ago was an important milestone for Che- ment was more than half a billion Danish perature whereby organic contaminants minova, since it was the license to ope- kroner (appr. 90 million USD). Develop- are decomposed. After incineration the rate the chemical manufacturing plant at ment of suitable waste-water treatment air is passed through a so-called scrubber Rønland, the backbone in our production procedures have for many years been a where water-soluble contaminants are activities. significant element in the development trapped before final emission of the air of new chemical processes. All emissions to the atmosphere. The content of spe- are today controlled and must meet fixed cific components in the emission gas is criteria established by the authorities. monitored and held against a set of permitted maximum limits. Cheminova elsewhere Waste water treatment Cheminova has chemical production The first investigations of the possibilities Process air from specific production facilities in Denmark and India. Be- for establishment of a biological waste plants contain residues of volatile organic sides, Cheminova has formulation and water treatment plant were initiated in solvents, e.g. hexane, which can be reco- filling facilities in Australia, Germany, 1982. The aim was in particular to re- vered before incineration of the air and Italy and the United Kingdom. Chem- move phosphorus containing compounds re-utilized in the production. ical waste from these facilities are originating from the production of or- handled either by means of external ganophosphate insecticides, and the Solid waste or internal incineration under strictly plant turned out to be very successful in Concurrent with the increasing demands controlled and regulated conditions this respect (see figure at the top). The in the Danish society for safe disposal of or treatment in biological waste-wa- plant was set into operation in 1988. chemical waste the need for a central ter treatment units according to local Over time, the micro-organisms in the specialized chemical waste treatment standards. biological waste-water treatment plant plant became apparent, and the then

Corporate Social Responsibility Report 2013 19 Openness and dialogue

We receive important input to our business and CSR from an open dialogue with Cheminova’s many stakeholders.

Cheminova values a continued dialogue job opportunities. We make a point of Customers and suppliers with its neighbors, the local community, good neighbor relations and participa- CSR forms part of the dialogue with the authorities, educational institutions, po- tion in local cultural life and activities. company’s customers, many of whom liticians and others. We observe the limi- The influence on the environment from appreciate to co-operate actively with tations to openness from stock exchange production plants is described elsewhere Cheminova in promoting product stew- rules, protection of sensitive personal in- in this report. ardship and environmental responsibility formation, general data protection rules among farmers. Information on the safe and regulations as well as competition In 2013, two open house arrangements use of products – as mentioned in the law. We do of course engage in a con- were held at the headquarters in Den- section on product stewardship – is an in- tinued and open dialogue with the rele- mark and additionally we had several tegrated part of the marketing of produ- vant authorities in the countries where groups of visitors (politicians, students, cts to end-users in developing countries. we operate. organizations etc.). Altogether more than 2,500 people visited the premises. Suppliers are audited with focus on the A dialogue with the company’s many environment, safety and labor standards stakeholders as well as the general pub- At the production site in India we have in accordance with the company’s Sup- lic debate on sustainability is a source received more than 500 visitors, among plier Code of Conduct which forms the of inspiration for the CSR work and the others farmers, governmental officials as natural basis for a constructive dialogue. selection of focus areas presented in the well as a group of women engaged in Sa- CSR report. heli self help activities in a project village Employees in the state of Madhya Pradesh. In 2013 where Cheminova celebrated its The company actively strives to keep 75 years anniversary throughout the glo- well-informed within the many fields of In countries where we have manufac- bal organization, there has been focus on relevance to its operations as well as cur- turing facilities we have an on-going company values, strategy, development rent and potential business areas. Via dialogue with environmental and other and global sense of community. In 2013, open literature as well as scientific pub- supervising authorities, for instance the more than 40 newsletters were sent to lications and trade sources, the press, Danish Environmental Protection Agency employees in all subsidiaries. On several specific searches on topics and the inter- and the Gujarat Pollution Board in India. occasions CSR related issues were ad- net, information and expressions of opi- dressed in these newsletters. nion in respect of CSR related issues are Investors sought. Particularly concerning product Of primary interest to stock market ana- CSR is regularly discussed throughout the properties, side effects and applications, lysts and investors, a number of investor global organization in relation to the lo- and in general, issues linked to dilemmas meetings are held both physically and on- cal daily business. At the local level, e.g. and controversies within the company’s line and are thus accessible to all stake- cooperative relationships, general well- sphere of interest. holders, including almost 7,500 share- being of employees and continued edu- holders of the parent company Auriga. cation have been on the agenda. Local engagement Presentations from these meetings inclu- Cheminova is an important part of the ding CSR related issues, among others, local society where we operate facilities are publicly available on Cheminova’s and employ people. We contribute to the website. local economy and offer a wide range of

20 Corporate Social Responsibility Report 2013 Chemistry with Care

Following up on targets.

Corporate Social Responsibility Report 2013 21 More plant protection, less chemistry, fewer resources

Future food security depends on increased agricultural production.

Global agriculture needs to increase produce more - even without bringing ad- Products sold on behalf of other compa- duction by 70% (measured in calories) on ditional parts of nature under cultivation nies (so-called third party products) are the present agricultural area in order to with wheat, corn, rice and other agricul- not included in these indexes. The exact feed the world population that in 2050 tural crops. composition of these products is not al- will have passed nine billion people ac- ways known to us; likewise information cording to FAO. ”More with Less” about energy consumption in the pro- Agriculture needs more efficient plant duction is not available. “Over the next several decades, the protection products that can ensure world faces a grand challenge - and op- growth with minimal impact on nature. More plant protection portunity - at the intersection of food Moreover, industrial production in gene- Like other suppliers to agriculture Che- security, development and the environ- ral is faced with demands to reduce ener- minova is not directly involved in the ment,” said Dr. Andrew Steer, President gy consumption. This also applies to the use of our plant protection products, and CEO of World Resources Institute. production of crop protection products since we do not participate in farming. “To meet human needs, we must close which means that Cheminova’s produc- Thereby, our knowledge about the de- the 70 percent gap between the food we tion and products are also part of these tailed product usage does not constitute will need and the food available today. dilemmas. a sufficient basis for this index. Instead, But, we must do so in a way that creates data from specialists in market analysis opportunities for the rural poor, limits More plant protection based on a more that can provide data on the consump- clearing of forests, and reduces green- sustainable input is among Cheminova’s tion of specific active ingredient per hec- house gas emissions from agriculture.” long-term objectives. tare in all relevant crops and countries are used. Data from Cheminova’s total Increasing yields Chemistry with Care sales of each individual active substance Since the middle of the 20th century Cheminova will address and illustrate this is weighted against this background, chemical plant protection has become a through indexes, showing the degree to providing the best possible assessment major factor behind the increasing yield, which Cheminova’s products contribute of the acreage of farmland protected farmers can harvest per hectare. to more plant protection while using by each active substance. The index is a less non-sustainable chemistry and con- summary of all Cheminova manufactured Input in the form of efficient plant va- suming fewer resources in the manu- products sold in the relevant period. rieties, fertilizers and pesticides have in- facturing process. From now on we will creased food production almost enough develop strategic objectives for this area Less chemistry to keep pace with population growth, al- and report on the results obtained. The index shows the amount of non-sus- though food waste, unequal distribution tainable chemistry per hectare applied as and other factors still mean that one in Development of three indexes plant protection products. Non-sustain- eight human beings are starving. Below is a brief description of the three able chemistry is to be understood as ac- indexes covering Cheminova’s own pro- tive ingredients no matter origin as well In addition to population growth the ex- ducts. A more detailed description can be as additives that are non-renewable or pected increase of livestock production found in the section on accounting prin- are extracted from fossile fuels. as well as use of agricultural land for bio- ciples on www.cheminova.com. fuel put demands on agriculture to pro-

22 Corporate Social Responsibility Report 2013 As an example we aim at reducing the Index II: Less chemistry amount of organic solvents, which fre- Also in this area, the lack of data for the quently have been used as solvents in period 2010 to 2012 makes us unable to plant protection products. calculate the index.

Fewer resources Index for 2009 to 2013 shows a significant This index indicates the amount of decrease in quantity of non-sustainable purchased energy in the form of electri- chemistry used with Cheminova’s prod- city, natural gas, fuel oil, biomass and the ucts per hectare. like required for Cheminova’s own production of plant protection products on Index III: Fewer resources Index I: More plant protection. Hectares protected by Cheminova’s products the synthesis plants in Denmark and In- The index shows the trend in energy con- (relative to 2009). dia. Both places undertake chemical syn- sumption at the plants in India and Den- thesis, which is a highly energy consum- mark. The total energy consumption is ing industrial process. These two sites are relative to the produced quantities provi- responsible for over 90% of Cheminova’s ding baseline figures for energy require- direct energy consumption. ment per kg product. Based on these key figures and the production it is possible Index for the period 2009-2013 to estimate an energy demand that fluc- The year 2009 is used as baseline (index tuates according to the level of activity. 100). As shown the index increases at the be- Index I: More plant protection ginning of the period which is due to a The area of farm land protected with sharp decline in the company’s activity as Index II: Less chemistry. Cheminova’s products has been calcu- a result of the global crisis, which caused Quantity of non-sustainable chemistry per lated from own sales figures weighted a relatively poor production efficiency. hectare (relative to 2009). against experts’ market analyses for all relevant countries and crops by means of At the end of the period the index is an independently validated method. For below 100, which indicates that a com- the years 2010-2012, we do not have suf- bination of increased level of activity and ficiently specific data of sales quantities energy savings resulted in lower energy for all products to be able to calculate consumption for a given activity. the index. The index can be calculated for 2013 and forward. Objectives for 2015 and beyond Based on these baseline data and trends Indexes for 2009 and 2013 show a signifi- in 2014 we will establish more precise cant increase in the plant protected area. targets for future development. Index III: Fewer resources. Energy consumption per kg produced product (relative to 2009).

Corporate Social Responsibility Report 2013 23 Activities in Indian villages

Agricultural and social development are the key targets of our activities among the local population in nine villages located in several states of India.

In 2013 we have kept focus on con- per schooling as a valuable asset for the ers, farm women and school education. tinued improvement of agricultural prac- local community. Likewise has the Wo- Training programs on pest control and tice including safe use of plant protection men empowerment project Saheli as well wheat diseases have helped the farmers products. Additionally Cheminova has as a medical camp for gynecological and manage their crops. Personal protec- supported several activities on general pediatric problems improved awareness tion equipment has been demonstrated community development. of health and livelihood among the vil- and kits have been distributed. Further lage women. children’s health and nutrition as well as Follow-up on targets establishing of women Saheli self-help Assessments involving external stake- Village Narukheri in Haryana groups has been part of the successful holders have been carried out in two The many activities in this village since program in this village. villages in 2013 based on which an exit 2010 were endorsed by the Choudhary strategy has been established. The plan Charan Singh Haryana Agricultural Uni- Further external evaluation of exit will be further discussed and ini- versity and the Sarpanch. In 2014 the activities in two more villa- tiated in 2014. The overall intention is ges will be evaluated externally similarly to reduce Cheminova’s direct participa- The village level activities were focused to the impact assessment undertaken by tion in consideration of maintaining the on training in safe and correct use of the Royal Danish Embassy in 2012. achievements obtained in these two vil- plant protection products involving farm- lages since the projects were initiated in 2010. The relation to the farming communities in the villages will be continued.

Village Prabdara in West Bengal Together with representatives from the Directorate of Extension Education as well as the local elected village head (Sarpanch) the impact of Cheminova supported activities in Prabdara was evaluated. Progress was observed on focus areas such as training and demonstrations of safety and better farming practice leading to improved yields, reduced farming costs and increased awareness of safety measures during spray operations. Further, water purification at the local school as well as subsidies to poor Selfhelp groups for women create value in the village community. In this case we support families has improved awareness of pro- them with sewing machines.

24 Corporate Social Responsibility Report 2013 A great difference with simple solutions: Plantgrowth is enhanced with Aakash Ganga.

Aakash Ganga – an expanding success By knowledge and simple means is has been possible to help farmers grow additional yield.

This project on rain water management has been expanded by 101 acres farm land. The project is managed with the assistance of Professor Ayyappa Masagi, who has been an inspiring force to the participating farmers.

The message from the Professor is that rain fed agriculture will benefit from subsoil water storage, particularly after a weak monsoon. A simple cost effective method of plowing trenches across the field has proved efficient to keep the soil moist during the growth season. Extra water in the soil means good plant growth and increased yield.

The feedback from the participating and safe use of plant protection products chanahali in Karnataka was given the op- farmers confirms an increased yield of as well as health, nutrition, schooling and portunity to visit the Central Food Tech- pigeon-peas and other crops. wellbeing of the children has continued nology Research Institute in Mysore. The in all Saheli groups. group members took a special interest in Progress for village farm women cereal product technology, food machi- Women in agriculture have involved Additionally new activities supported nery, fruit and vegetable product and the themselves in several entrepreneurship by Cheminova have been taken up, illu- protein specialty division. activities through formation of self help strated by the following two examples. A groups. group of 33 farm women from the village This visit propelled the group to have Ekalduna in Madhya Pradesh was given their own mini-mill for processing ragi Like in the previous years the activities a trip to visit Cheminova’s factory site in millet which is a crop rich in valuable pro- under the project umbrella Saheli (Safety Panoli in Gujarat. This trip was very edu- teins. Health and Livelihood) has also in 2013 cational among other things in providing been many and of diverse nature. understanding of the nature of plant protection products and their safe handling. The traditional engagement in agriculture A similar group from the village Kachma-

Corporate Social Responsibility Report 2013 25 Banana projects meet increasing participation from banana farmers in Brazil

During 2013 the banana growers in São Paulo state of Brazil have shown an increasing interest in using Cheminova’s reduced impact technology for disease control in environmentally sensitive areas.

In the near coastal banana growing area forms an environmentally friendly and cal agronomic experts as an efficient and in Vale do Ribeira Cheminova’s team has highly efficient alternative that has pro- safe method of disease control. Chemi- for two years worked with the banana ven attractive to the farmers. The tech- nova has assisted in introducing a better farmer’s organization ABAVAR as well as nology also has the benefit of avoiding variety of bananas in the area. Due to a individual farmers on a CSR project to re- use of mineral oil as an additive to the relatively weak organization of the local duce the environmental impact of fungi- fungicide spray fluid. The axil application farming community further progress in cide use in sensitive areas. method is endorsed by local agronomic establishing improved marketing and experts. branding effort of bananas from this area The project addresses the dilemma of has been discontinued. However the axil how to control devastating diseases in At the November 2013 Feibanana fair in application technology has spread to banana plantations along rivers, streams, the area the experience achieved was di- other areas of Goias. roads and houses without broadcasting scussed with advisors, dealers and farm- fungicides. ers. The method appeared attractive to New project in Santa Catarina small as well as large scale farmers and With the intention of establishing a si- If these areas are left without control the area under the axil application pro- milar project in the state of Santa Cata- yield will drop dramatically and the area gram with Flutriafol has increased from rina - primarily with small scale farmers will become a bridgehead for infestation 200 to appr. 300 hectares in 2013. - tests have been carried out. The initial to spread. On the other hand the tradi- evaluation of the practical validity of the tional aerial application over these areas Project with small scale farmers in the axil application method with flutriafol has means a high risk of unnecessary pollu- state of Goias shown very promising results in 2013. tion of the environment. In the village Bureti Allegre the axil application to control the plant disease Cheminova’s low-tech hand held preci- yellow sigatoka has become the method sion technology makes it possible to ap- of choice among an increasing number ply a few drops of a systemic fungicide of farmers now covering approximately directly to the plant. This axil application 150 ha. The method is endorsed by lo-

26 Corporate Social Responsibility Report 2013 ”More than 3 years of research with the systemic fungicide Impact® applied in the axil of banana plants have shown impressive results in significantly reducing the severity of black sigatoka. The implementation of this new technology is a good tool to help in the management of black sigatoka in banana crop, for small, medium and large producers.” Dr. Wilson da Silva Moraes Agronomist , Researcher From APTA (Agência Paulista de Tecnologia em Agro- negócios), Phytopathology. Vale do Ribeira Regional Pole, São Paulo State, Brazil

Dr. Wilson (left) explains the effect of our technology on plant diseases.

Cheminova’s booth at the banana fair had focus on environment and personal protection equipment.

Corporate Social Responsibility Report 2013 27 Production

In 2013, production activities The Cheminova group owns the following manufacturing plants: have been increased. Envi- Name Production Country Location ronment, health and safety Chemical synthesis, formula- Cheminova A/S Denmark Rønland, Lemvig are first priorities at all pro- tion and packaging Chemical synthesis, formula- Cheminova India Ltd. India Panoli north of Mumbai duction sites. tion and packaging Cheminova Deutsch- Formulation and packaging Germany Stade west of Hamborg land GmbH & Co. KG Data pertaining to environment, health San Colombano, Althaller Italia s.r.l. Formulation and packaging Italy and safety for these plants are shown south of Milano in the fact box on page 30. The produc- Headland United Formulation and packaging Deeside, North Wales tion in Denmark and India constitutes the Agrochemicals Ltd. Kingdom overall majority. All manufacturing plants Cheminova MFG Pty. Formulation and packaging Australia Wyong north of Sydney are included in the statements for 2011, Ltd. 2012 and 2013.

Detailed information for the companies, the treatment of dangerous waste. This The area where the Indian company’s which are included in the statement, may concluded a long process where more production plant is located is a large in- be found at www.cheminova.com, where than 19,000 metric tons of sulfur waste dustrial area with many other chemical the applied CSR accounting policy is also was removed. plants. Occasionally, this has resulted in located. problems with air quality and smell. In Environmental improvements and ener- this connection Cheminova has worked Contaminated sulfur depot removed gy savings on reducing smell and problems related For many years an authorized depot for The significant discharges of treated to the work environment, among other chemical waste has been situated at waste water take place from the manu- things by installing new technical fa- Cheminova’s manufacturing site at Røn- facturing sites in Denmark and India, cilities in 2013 such as automated and land in Denmark. The depot has held where the recipients are the North Sea closed packaging systems, closed drying remnants of sulfur, sand and concrete and the Gulf of Chambal, respectively. facilities etc. Cheminova has also been containing low concentrations of or- involved in a project to establish green ganophosphate chemicals and mercury. During 2013 the plant in India has ex- zones of trees in the area. More than Back in 2010 Cheminova entered into perienced increased production, with 2,000 new trees are planted on Environ- an agreement with the Danish Environ- record-breaking amounts of several im- ment Day each year. mental Protection Agency about removal portant active ingredients. In spite of of the depot over a period of time. The this, waste water treatment has been The majority (> 90%) of the energy con- removal procedure was initiated at the improved by continuous upgrading of the sumption at Cheminova’s manufacturing end of 2012 and continued throughout biological waste water treatment facility plants is related to the sites in Denmark 2013. In December 2013 the excavation and pretreatment of the waste water. For and India, where active substances for was concluded and on December 27 the instance the Chemical Oxygen Demand plant protection products are manufac- last load was shipped from Denmark. The (COD) has been reduced significantly, tured by chemical synthesis. These pro- sulfur waste has now been deposited in among other things by changing the aer- cesses are highly energy demanding and a special depot in Norway, more specifi- ation system and introducing improved the major part of the steam and electric- cally on the island of Langøya in the Oslo hypo chlorite treatment of the waste ity consumption is produced with natural fjord. The depot is one of Europe’s most water before it is channeled into the bio- gas as energy source, the remaining part recognized centers of competence for logical waste water treatment facility. with other types of fuel, primarily oil.

28 Corporate Social Responsibility Report 2013 Generally, we are continuously working duced by 2% per produced volume. are pending with the authorities. The on improvements within the areas of Comments: The energy consumption plan is on schedule. energy and environment at all the pro- was reduced by 2.5% compared to • The quantity of waste per produced duction plants. It may be through reduc- 2012 and the objective achieved. unit and Cheminova’s total costs for tion of various emissions, reduction of • The content of COD in the treated treatment of hazardous waste will be energy consumption or improved recov- waste water will be reduced by 3%. reduced by 5% and 10% respectively ery of chemicals as an alternative to in- per year in 2012-14. cineration. Comments: The COD in the treated waste water was reduced by 32% from Comments: Waste/product (kg/kg) in- REACH - EU’s substance regulation 17.8 tons in 2012 to 12.1 tons in 2013 dex in 2013 was 104 (objective 2013 In mid-2013, stage 2 of the EU substance and the objective achieved. index 90). Cost/product (DKK/kg) index regulation REACH was concluded. Stage 2 for 2013 was 87 (objective 2013 index • The frequency and severity of incidents involved the registration of non-crop pro- 81). The objective is not achieved. The at work will be reduced by 2%. tection substances, which are produced initiated activities for reduction of ton- or imported to the EU in volumes of 100- Comments: In 2013 there were no ac- nage and costs have been overtaken 1,000 metric tons per year. cidents with absence of more than 48 by new waste streams and changes in hours. The frequency of non-report- product mix to products that generate Back in 2010 the first stage was conclud- able accident (incidents) was reduced more hazardous waste. This will chal- ed involving registration of substances from 19.9 per one million man-hours lenge the possibility for achieving the produced or imported in volumes of worked in 2012 to 18.0 in 2013 corre- objective also in 2014. more than 1,000 metric tons per year. In sponding to 9.5% improvement. The severity rate was reduced from 14.13 mid-2018 the last stage awaits involving Australia registration of substances produced or lost man-hours per 1,000 man-hours worked in 2012 to 11.10 in 2013 cor- • Obtain certification of the company’s imported in volumes of 1-100 metric tons occupational health and safety man- per year. responding to 21% improvement. For that reason the objective is achieved. agement according to OHSAS 18001 in 2014. In the first and second stage Cheminova • The production at the Intermediate Di- has obtained 21 registrations with 10 ‘in vision will be certified according to ISO Comments: The management system is situ isolated intermediates’ and 6 ‘trans- 14001 and OHSAS 18001. prepared and audited internally. Certi- fication is expected in 2014 according ported isolated intermediates’ with lim- Comments: The audit of the certifying to schedule. ited data requirements. Furthermore, company was accomplished in May full registration of 5 substances was ob- and the certificates were received in • The waste water treatment will be im- tained, including 3 flotation agents which June. The objective is achieved. proved and renewed permit for dis- are used in the mining industry for sepa- charge will be applied for. ration of metals from the ore. These flo- Denmark Comments: Studies on the waste water tation agents are manufactured at Chem- • Operation of the biological waste wa- and the treatment process are com- inova’s plant in Denmark. The two other ter treatment plant will be reassessed pleted. Submission to council for an substances are micronutrients for fertil- in 2012-15 so that the potential of the updated approval is to be prepared and izing purposes manufactured at our sub- plant is utilized in the best possible submitted. Objective is partly achieved. sidiary Headland in the United Kingdom. way. United Kingdom Comments: Two waste water streams Follow-up on objectives for 2013 • Environmental and safety conditions India were changed in 2013. The operation of the waste water plant is unaffected will be reassessed and applications for • The energy consumption for the pro- from the changes. Several applications changes will be sent to the authorities. duction of two large products to be re-

Corporate Social Responsibility Report 2013 29 Comments: The Major Accident Preven- tion Policy and COMAH Safety Report Fact box: Environment, health and safety were developed and submitted to the Unit Note 2013 2012 2011 competent authorities in Q2, meeting Water consumption: Cooling Mio. m3 1 28 29 31 the requirements of the regulations. Processes and ord. 3 2 729 659 682 The permit was granted during Q2 of consumption Thousand m 2013 and thereby the target achieved. Energy consumption: Natural gas GWh 2 + 3 295 309 337 LPG GWh 2 0.67 0.73 0 Germany Electricity GWh 77.9 70.6 67.2 • A filter to reduce the emission of dust Fuel oil GWh 1.90 1.80 2.7 from the production will be installed. Bio fuel GWh 3 29 0 0 Comments: The dust filter was installed Materials: Raw mat. consump. 1000 tonnes 112 108 103 and commissioned in Q3. It operates as expected. Objective is achieved. Discharge of waste COD Tonnes 152 148 206 water: Nitrogen Tonnes 19 22 31 Phosporus Tonnes 4 9 7 9 Comments on the development from Air emissions: Particles Tonnes 5 7.3 5.7 4.5 2012 to 2013 CO 1000 tonnes 76 63 71 Measured on the consumption of raw 2 materials the overall activity has incre- Ordinary waste: Recycling 1000 tonnes 6 3.2 3.0 3.7 ased by 4%. Most significant changes are Incineration 1000 tonnes 7 0.3 0.26 0.47 seen as increasing activity in Denmark, Depositing 1000 tonnes 8 18.3 17.9 15.8 India and Italy. The increase in consump- Hazardous waste: Recycling 1000 tonnes 9 2.5 1.76 0.58 tion of process water and total energy is Incineration 1000 tonnes 10 13.3 12.3 7.6 due to the increased activities. Depositing 1000 tonnes 11 5.6 4.9 2.28 Spillage and waste: Number 11 10 19 Note 1: In India, the reduction of consumption of cooling water is relatively Accidents: Number 12 11 18 20 high caused by changes in product mix. Accident frequency: – 1.9 3.3 4.0 In Denmark, a tighter control has reduced Absence from work due to accidents: – 0.1 0.2 1.0 the consumption of cooling water des- Information about accounting policies can be found on Cheminova’s website. pite a higher production.

Note 2: Figures for 2012 are corrected. Note 6: The increase is mainly caused by Note 10: The amount of waste is incre- changed activities in India and Denmark. ased due to increased activity and chan- Note 3: In India the consumption of na- In Germany, the quantity has increased ges in product mix in Denmark. tural gas is decreased due to use of bio because of a tidying-up campaign. fuel for steam generation at one of the Note 11: The increase is mainly caused sites. Note 7: Increase in Denmark where by commissioning of a new production empty packaging from raw materials pre- in India. As reported on page 28 more Note 4: The emission of phosphorus in viously was classified hazardous waste. than 19,000 metric tons of sulfur waste India decreased because of changes in was removed from a depot in Denmark. product mix. Unintensional emission of Note 8: In the United Kingdom a con- Because the sulfur waste originates from sludge from the biological waste-water siderable change happened because of production in the 1970’es this waste is treatment plant in Denmark caused a changes in the classification of waste that not included in the reported figure. substantial increase. previously was composted (classified recycling). Note 12: In all companies internal repor- Note 5: The emission of particles in In- ting is made up of both reportable and dia increased from 2012 to 2013 due to Note 9: The increase is caused by chan- non-reportable accidents. Reportable ac- increasing production and an additional ges in India, where the waste is now re- cidents occurred in Denmark only. steam boiler. processed or used as fuel in the cement industry.

30 Corporate Social Responsibility Report 2013 Supplier management

Supplier management has been strengthened through education and training of our employees.

Inspection of the production facilities of a supplier. In recent years our focus within supplier an improved administration and filing management has been on development system for documentation generated and implementation of global policies, in connection with CSR audits. During especially concerning procurement of 2013, several tools have been evaluated, raw materials, active ingredients and ser- all capable of managing and storing data vices such as toll formulation and filling about audits in a global company. We of end user products. Furthermore, focus have opted for utilizing our global ERP sy- has been on strengthening the estab- stem (SAP) which has an ’Audit Manage- lished global team of Technical Respon- ment’ module and which also matches sible Persons that carry out the overall Cheminova’s global policies. In addition global supplier management. to being a filing tool the system is also characterized by being able to administer More than 60 times Cheminova staff has planned audits in the global organization. either done a complete supplier audit or We expect the system to be tested in Q1 screened a potential supplier in 2013. Re- 2014 and to be up and implemented mid- levant findings were recorded and critical 2014. issues will be followed up.

To ensure a consistent approach to these processes while considering the cultural differences in the countries and regions of Cheminova’s suppliers, one of the tar- Joint training in essential aspects of supplier management: gets of 2013 was to conduct common education and training. In august 2013 Topics covered: a number of relevant employees from • introduction to CSR standards, requirements and risk different disciplines/areas in the global • suppliers and the interaction with the business organization and with an interest in sup- • supplier management and Cheminova’s policies in this regard plier management participated in a joint • roles, responsibility and contributions in supplier management of purchasers, training session in Denmark with PwC as project managers, people responsible for quality and the CSR organization. facilitator. There were many topics and • how do we obtain advantages from CSR audits globally objectives (cf. box). The objectives were to gain an understanding of how to: Administration of company audits in a • improve relations to suppliers global company • improve product quality With the number of suppliers steadily • secure fulfillment of customer requirements and expectations increasing there is a growing need for • plan, execute and report CSR audits

Corporate Social Responsibility Report 2013 31 People

The values set the standard.

One of our goals in 2012 was to focus on graphical distribution of employees from degree of job satisfaction and commit- the values in the Cheminova group and 2008 to 2013 is: ment, a global employee survey will be we continued our efforts in 2013 to make initiated during the second half of 2014. them the baseline for all employees in 2008 2013 The purpose is to measure the individual their daily work both internally within the Americas 12% 12% departments’ overall employee engage- Cheminova organization and externally, Asia 27% 34% ment and commitment. The subsequent e.g. when cooperating with our custo- follow-up will secure that areas and/or mers and suppliers. Denmark 43% 37% units that are having a need for increased Europe 18% 17% employee satisfaction and commitment The five global Cheminova values are: will receive the support needed. Naturally, it requires knowledge and adherence to the Cheminova values, po- The follow-up will also ensure that our licies and processes in order to secure employees have the opportunity to live the necessary alignment. Considering in accordance with the Cheminova values that more than half of our workforce has in a constructive way and for both emplo- more than 5 year’s seniority we consider yees and Cheminova to benefit and de- our baseline to be solid. velop professionally and personally. Equal opportunities for everyone are our Survey - employee engagement foundation and the survey will highlight To ensure that the global workforce of whether the prerequisites are present in The introduction to our values starts du- more than 2,200 persons has a high our organization. ring the recruitment process and continues during the onboarding phase. Once The split on seniority for Cheminova employees before year-end 2013 is: the employee has joined the Cheminova group, the experienced colleagues and managers secure that all new employees comply with the values.

Our organization is growing Also in 2013 the increase in the number of employees continued. Since 2008 the number of employees globally has increased by 18%. The main increase is seen in Asia whereas by and large the numbers for Denmark and the other European countries stay at the same level. The geo-

32 Corporate Social Responsibility Report 2013 We offer a variety of jobs.

Diversity both development and qualifications will violations were reported in 2013. Naturally, Cheminova also focuses on di- be discussed. In 2013 80% of the global versity in the organization as well as the workforce has completed appraisals, and Communication associated opportunities and benefits. in 2014 we shall continue focusing on A new global intranet will be launched Considering the mere fact that we have having appraisals and a follow-up on the in 2014. By streamlining the information employees in 23 countries, nationality subsequent feedback and conclusions. flow and access to global policies, proce- alone increases the level of diversity. We believe that both the employee and dures etc. and securing that all employ- As far as distinction of genders is con- Cheminova will benefit from the apprai- ees have the same access to communica- cerned we have in 2013 set up a goal for sal process. To have visible career paths tion and tools, we hope to see a positive the distinction of genders at board level in the Cheminova group rather than just impact on the implementation of a wide and we expect to continue this work in the management career path, new and range of procedures. the rest of our organization. Initially, we other visible career paths within e.g. spe- shall start monitoring the distinction of cialist and project leader functions will Anti-bribery genders at the management level. Our be created also making these obvious Both bribery and corruption are identi- long-term objective is that the distinction choices for development and career. fied as priority areas for governments of genders will reflect the structure of the and authorities world-wide. Legislative total workforce. The overall gender struc- Whistleblower process developments in combination with an ture in the Cheminova group is approx. In 2013 we experienced a need for a new increased understanding of the private 80% male, 20% female, however, with whistleblower set-up as our former sup- sector’s role in eliminating bribery and substantial regional differences. plier decided to end our cooperation. corruption influence especially the global By the end of the 4th quarter the new companies which are facing challenges In 2013 a global recruitment procedure whistleblower set-up was implemented. and a need for continuously developing was implemented. The recruitment pro- All employees have been informed about their policies and procedures. cedure will among others help to secure the new whistleblower function which and reflect diversity, including but not li- consists of an external website where re- Similar to the past years we implemented mited to, focus on the distinction of gen- ports can be placed anonymously through initiatives to retain and strengthen our ders when identifying the field of candi- a hotline either in writing or by calling a anti-bribery program in 2013. The objec- dates during the recruitment process. specific phone number. All reports placed tives in the present report show that we through this external website are for- are working systematically with both risk Yearly appraisals warded – anonymously – to the whistle- analysis as well as education of a selected To emphasize the importance of develo- blower committee which is responsible number of employees in Denmark and ping the individual employee and the- for investigating the high-lighted viola- the group’s subsidiaries world-wide. reby ensuring the qualifications need- tions. Every quarter a report is sent to the ed, a yearly appraisal between the audit committee unless special reports The initiatives are firmly entrenched in employee and manager is scheduled require a direct and immediate involve- our values with the acknowledgement and completed. During the appraisal ment from the board. No whistleblower that the Cheminova group can contribute

Corporate Social Responsibility Report 2013 33 People, continued

positively to the elimination of bribery 2014. The feedback and experiences are In 2013 we carried out 112 safety drills and corruption within the business areas very positive and concrete improvements in India. Three of these took place at the where we are operating. A natural part of have already surfaced in connection with Panoli office. At the production facilities the process is to revise policies and pro- SAFE walks – also an improvement in the the safety drills included training in fires cedures on a regular basis to secure that employees’ attitude towards SAFE has in chemicals and electrical installations, these are still valid and up-to-date ac- been registered. This ensures the con- leakage of toxic chemicals, electrical dis- cording to applicable legislation and stant and necessary focus on health and charges and personal injury when falling identified risks. safety at work. from heights.

Health and safety at work Safety drills In the United Kingdom we carried out a Our first priority is to have a safe working One of our global focus areas in 2013 fire drill including emergency call, fire- environment and therefore Cheminova has been safety drills. The purpose of fighting, evacuation, roll call etc. for all continuously monitor work-related acci- having these safety drills is to prepare the employees including business associates, dents as well as near-miss reporting. The employees in case of fire or gas leakages. contractors and other guests. purpose is, naturally, to avoid accidents The training in firefighting, evacuation or from happening again. In 2013 a speci- life-saving is part of the safety program at In 2014, we are planning an extensive fic health and safety program, SAFE, was our production facilities. The plants have safety drill in Germany where also an ex- introduced in Denmark in a new and im- contingency plans which are the founda- ternal firefighting service will be partici- proved version. SAFE is a program where tion for these safety drills. Please refer pating. employees are trained in conducting a to the below examples from India and health and safety audit in other depart- United Kingdom where training and drills ments. The SAFE program will continue in are described.

As a part of the celebrations of Cheminova’s 75th anniversary Brazilian colleagues won a visit to the Danish factory site.

34 Corporate Social Responsibility Report 2013 Action plan

Corporate Social Responsibility Report 2013 35 Action plan

Village projects Focus area Objective/action Timetable Success criteria India: Objective: To promote Good Agricultural Practices 2014 Establish use of Good Agricultural Practices in Village projects Action: This area encompasses all activities concerning village project Improved Agricultural Practices i.e. from land preparation, seed treatment, weed management and promotion of low dose chemicals Objective: Continuation of Saheli Project on Women Em- 2014 Skill development program for Self Helps powerment Groups Action: This concept is a step to take Good Agricultural Practices (above activity) further to involve all members of farming families i.e. men, women, children and other stakeholders Water conserva- Objective: Promote water conservation in Rainfed Agricul- 2014 Increase adoption of this concept over 250 tion project ture acres in three states i.e. Karnataka, Andhra Pra- Action: A very large area of Indian Agriculture comes under desh and Tamil Nadu Rainfed Agriculture Brazil: Develop- The project among small-scale banana farmers in the state 2014 The project keeps momentum ment of village of Goias and the dialogue with local agronomists will be based environ- continued mentally friendly control of ba- The project with focus on safe and environmentally friend- 2014 - 15 The project keeps momentum and involves an nana diseases ly control of plant diseases among banana farmers in the increasing number of farmers state of São Paulo will be continued Initiate a project with axil application among banana 2014 - 15 The project is initiated at farm level growers in Santa Catarina

Helping you Grow – Chemistry with Care Focus area Objective/action Timetable Success criteria Chemistry with Objective: More plant protection 2014-17 Ongoing reporting of a 12 months rolling index Care Action: Continued improvement in 12 months rolling index with continued improvement compared to the illustrating the area of farm land where crops and thus the previous quarter and base year 2009 food production is protected by Cheminova’s products Objective: Less chemistry 2014-17 Ongoing reporting of a 12 months rolling index Action: Continued improvement in 12 months rolling index with continued improvement compared to the illustrating the quantity of non-sustainable ingredients ap- previous quarter and base year 2009 plied in Cheminova’s products per area unit Objective: Less resources 2014-17 Ongoing reporting of a 12 months rolling index Action: An index illustrating the energy consumption for with continued improvement compared to the manufacturing products at Cheminova’s productions sites previous quarter and base year 2009 in India and Denmark will be implemented Development of at least 10 formulations with a low content 2014 Recipes filed at Cheminova A/S or Cheminova of volatile organic solvents India Ltd Lower average toxicity of newly developed formulations 2012-14 By each year the average WHO classification of measured 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 Objective/action Timetable Success criteria India Objective: Reduction of the amount of COD discharged in 2014 COD amount in the treated water reduced by at treated waste water by 3% least 3% compared to 2013 Activity: Segregation of high COD stream and their in-house treatment within manufacturing plants Objective: Certification of the production at the Formula- ISO 9001: ISO 9001: Certificates obtained from the certi- tion Division 1 & 2 in relation to ISO 9001, ISO 14001 & 2014 fication company OHSAS 18001 ISO 14001 ISO 14001 and OHSAS 18001: Prepared and Activity: Implementation of a management system that and OHSAS ready for certification in 2015 meets the requirements of the standards 18001: 2015

36 Corporate Social Responsibility Report 2013 Focus area Objective/action Timetable Success criteria Denmark Revision of the operation of the biological waste-water treat- 2014 With adherence to the discharge requirements ment plant where the waste water from the individual pro- for the biological waste-water treatment plant duction plants is treated/optimized so that the potential of approval is achieved annually for supply of two the plant is utilized in the best possible way new waste water streams to the plant after ne- Activity: It will be examined whether waste-water streams, cessary pre-treatment which are today treated externally, may instead be treated biologically, possibly after a pre-treatment. In case of a positive result we will ask the authorities for permission Objective: To reduce consumption of steam at a plant for 2012-15 Steam consumption per liter recovered solvent recovery of an organic solvent – hexane – through optimi- in the period 2010-2011 used as basis. zation of the recovery sequence Steam consumption to be reduced min. 10% Activity: Surveillance of mass balance for the plant through compared to basis continuous measuring of inlet and outlet concentrations and flow is established. Based on the outlined mass balance it is estimated whether the recovery sequence may be optimized based on mass flow of solvents in inlet air and at the same time ensure an acceptable emission. If necessary, the control system of the plant is updated in order to make the mentioned optimization possible Australia Objective: Obtain certification of the production in relation 2014 Certificate obtained from the certification to OHSAS 18001 company Activity: Implementation of a OHSAS 18001 management system Objective: Reassessment of environmental and safety per- 2014 High standard met on environmental and safe- formance to meet the high standard ty performance. MHF report submitted to the Activity: Submission of a MHF report to the competent aut- authority hority United Kingdom Objective: Continuous improvement of occupational safety 2014 Total number of reportable and non-reportable and health accidents recorded during 2014 ≤ 25. Total Action: Increase the number of near misses being re- number of near misses reported ≥ 70. Investi- ported. Complete all safety critical training. Raise aware- gation of all near misses documented. Author- ness through toolbox talks and poster campaigns ity Reportable Incidents ≤ 1. Lost time accident frequency rate ≤ 10

Supplier management Focus area Objective/action Timetable Success criteria Global Audit Objective: Establishment of a global system for filing audits 2014 Full implementation of the global system Management and share experience and knowledge where SAP is implemented System Activities: Setting up a global data base in SAP. Implementa- tion of the data base and management system by training auditors

Human Resources Focus area Objective/action Timetable Success criteria Employee de- Objective and activities: At least once a year all employees 2014 Overall number of performance and develop- velopment and their direct superior conduct a performance and de- ment reviews conducted. velopment review – conclusions are documented and im- Progress in implementing the agreed conclu- plemented sions Employee enga- Objective and activity: Conduct a global Employee Engage- 2014 Overall response rate higher than 70%. gement ment Survey Develop action plans by organizational units to either secure or increase engagement level as needed Diversity Objective: Ensure that diversity is taken into consideration 2014 Operational base line created. when positions are vacant Objectives for gender diversity documented Activities: Create base line for measuring gender diversity in the general workforce and managerial positions. Objectives for gender diversity to be defined Denmark Target: Ensure a safe work environment by increasing all 2014 By the end of 2014 all employees have been employees’ involvement and foster a positive safety cul- educated and involved in the SAFE program ture and behavior Action: Starting from Cheminova’s values employees are educated and trained in understanding colleagues’ job functions, interactions in the organization and care in time Anti-corruption Mapping from which a classification of country based cor- 2014 GEC approval of mapping. Educational activities ruption risks can be made. Educational activity for selected for selected employees has been undertaken employees

Corporate Social Responsibility Report 2013 37 More information

38 Corporate Social Responsibility Report 2013 Management statement

Jaime Gomez-Arnau Jakob Lyngsø Andersen Anton Bro Rico T. Christensen CEO & Region President, Senior Vice President, Senior Vice President, President, Europe Human Resources & Development & Registration Region North America Communication

Niels Morten Hjort Pramod N. Karlekar Cesar Rojas René Schneider Senior Vice President, President, President, Chief Financial Officer, Production & Logistics Region International Region Latin America Finance & Support

On February 19, 2014 the company’s day-to-day top management, the Global Execu- tive Committee (GEC), considered and approved the CSR report for 2013.

Cheminova’s CSR work is founded on UN’s Global Compact and GRI (Global Repor- ting 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 CSR Strategy as well as policies and procedures in our Global QC and CSR Manual (http://www.cheminova.com/en/ sustainability/corporate_social_responsibility/csr_policy/management_approach_ to_csr_management.htm). Jens Thorsen GEC has the overall responsibility for Cheminova’s global business and activities, in- Senior Vice President, cluding CSR. Portfolio Management

It is the GEC’s view that the CSR report for 2013 provides an accurate picture of the company’s CSR activities in the areas described.

Corporate Social Responsibility Report 2013 39 Assurance statement

Independent Assurance Statement for the spect of supporting the UN Global Compact The criteria stated concerning statement of stakeholders of Cheminova A/S principles. environmental and occupational health and We have assessed the Cheminova A/S Corpo- safety data as well as the indices, as descri- rate Social Responsibility Report 2013 for the Our responsibility is, on the basis of our work, bed in the accounting policies, have prima- purpose of expressing a conclusion on the de- to express a conclusion on the information rily been assessed from inquiries concerning scriptions of target attainment, non-financial contained in the Report regarding target at- procedures for calculation and measurement data and indices regarding ‘more plant pro- tainment, non-financial data and indices as of the concrete data. Furthermore, we have tection’, ‘less chemistry’ and ‘fewer resources’ well as on the Report as a CoP Report. performed technical accounting analyses of contained in the Report as well as its capacity reported data and have reviewed selected do- as a Communication on Progress Report (CoP Scope of our work cumentation. Report) occasioned by the Cheminova A/S sig- We planned and performed our work in ac- nature to the UN Global Compact. cordance with the International Auditing We have reviewed the Report with a view Standard ISAE 3000 (assurance engagements to assessing its informative value in relation Criteria applied other than audits or review of historical finan- to expectations for a CoP Report. Through The criteria for CSR-related target attainment cial information) for the purpose of obtaining interviews with Management and selected are stated in the Corporate Social Respon- moderate assurance that: key employees, we have gained insight into sibility Report 2012, in which targets as well • the status of attainment of established Management’s commitment and status of as success criteria for the focus areas Village CSR targets for 2013 on pages 5-6 is in ac- embedding the UN Global Compact and the Projects, ‘Helping you grow – Chemistry with cordance with the listed criteria for CSR values of Cheminova on the basis of imple- care’, Product Stewardship, Production, Sup- targets, which were published in the Corpo- mentation of activities. plier Management and Human Resources, are rate Social Responsibility Report 2012; presented. • the environmental and occupational health As agreed with the Management of Chemi- and safety data stated on page 30 as well nova A/S, we have not performed any pro- The criteria for preparation of non-financial as the indices on page 23 have been recog- cedures relating to the reliability of the GRI data and indices contained in the Report nised in accordance with the criteria stated reporting for 2013. are evident from the accounting policies de- for preparation of the non-financial data scribed at the website: http://www.chemi- and indices of the Report; Conclusion nova.com/download/sustainability/csr_ac- • the Report in its entirety is consistent with Based on our review, nothing has come to our counting_principles_2013_en.pdf. These the company’s CSR activities and progress attention that causes us to believe that the contain information concerning which of the with a view to supporting the UN Global descriptions covering the status of the attain- Cheminova Group’s businesses and activities Compact. ment of CSR targets for 2013 on pages 5-6 are are included in the types of data reported as not accurate. well as Management’s reasons for selecting The assurance obtained is limited as com- environmental and occupational health and pared to that of an audit. Our work has there- Furthermore, nothing has come to our atten- safety data and the indices. fore, based on an assessment of materiality tion that causes us to believe that the environ- and risk, primarily included inquiries concer- mental and occupational health and safety Responsibilities ning goal attainment, including on a judge- data stated on page 30 as the indices on page Cheminova A/S Management is responsible mental sample-basis obtaining documented 23 have not been recognised in accordance for preparing the Report, including for setting confirmations regarding goal attainment from with the criteria stated for preparation of the up registration and internal control systems local managements, interviews with selected non-financial data and indices of the Report. with a view to ensuring reliable reporting. key managerial employees responsible for the Company Management is furthermore re- goal attainment and review of selected docu- We confirm that the Report serve as the CoP sponsible for specifying acceptable reporting mentation. Report of Cheminova A/S, and based on the criteria as well as selecting data to be col- total work performed, nothing has come to lected. Moreover, our review of local targets and data our attention that causes us to believe that has included visits to the production compa- the Report in its entirety is not based on spe- Moreover, Cheminova A/S Management is nies in India, Germany and Denmark, and we cific activities and the progress of Cheminova responsible for preparing a CoP Report pre- paid visit to the sales company in India. A/S with a view to supporting the UN Global senting the progress of Cheminova A/S in re- Compact.

Hellerup, March 6, 2014 PricewaterhouseCoopers Brian Christiansen Jens Pultz Pedersen Statsautoriseret Revisionspartnerselskab State Authorised Public Accountant MSc (Engineering, Diploma (Business Economics)

40 Corporate Social Responsibility Report 2013 UN Global Compact

Progress report on the implementation of the principles of the UN Global Compact.

Cheminova has supported the United stems at Cheminova that support the 10 Nations Global Compact since 2009. We principles of the Global Compact and the support the endeavors to make globa- results which were achieved in the period lization more socially and ecologically under review. Information on the Global compatible and to raise standards in the Compact can be found at www.unglobal- fields of human rights, labor rights and compact.org. environmental protection and in the fight against corruption. The following table The page numbers refer to relevant sec- shows the activities and management sy- tions of this report.

Systems Measures 2013 Achievements 2013 Human Rights: Principle 1: Support of human rights Principle 2: Exclusion of human rights violations • Code of Business Principles (p. 48) • In 2013, establishment of visible and successful career paths glo- • Executed (p. 6) • Supplier Code of Conduct (p. 48) bally will be initiated • Management approach to • In 2013, a global recruitment policy and recruitment procedure • Executed (p. 6) CSR management (p. 48) will be prepared and communicated • UN Global Compact • The project Saheli on women empowerment on safety, health • Executed (p. 5) and livelihood in India will be continued in 2013

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. 48) • In 2013, establishment of visible and successful career paths glo- • Executed (p. 6) • Supplier Code of Conduct (p. 48) bally will be initiated • Management approach to • In 2013, a global recruitment policy and recruitment procedure • Executed (p. 6) CSR management (p. 48) will be prepared and communicated • UN Code of Conduct (p. 48) • Production at Cheminova MFG Pty. in Australia will in the period • Implementation plan 2013-14 be certified in relation to OHSAS 18001 followed (p. 6) • UN Global Compact

Environment: Principle 7: Precautionary environmental protection Principle 8: Specific commitment to environmental protection Principle 9: Diffusion of environmentally friendly technologies • Code of Business principles (s. 48) • In India, the project Aakash Ganga on water conservation will be • Executed (p. 5) • Responsible Care (p. 48) continued in 2013 and extended with further 25 acres. • Supplier Code of Conduct (p. 48) • The project among small-scale banana farmers in the state of • Executed (p. 5) Goias in Brazil will be continued in 2013 • Management approach to CSR management (p. 48) • A new project on safe and environmentally friendly control of • Executed (p. 5) plant diseases will be launched among banana farmers in the • UN Code of Conduct (p. 48) state of São Paulo in Brazil in 2013 • UN Global Compact

Corporate Social Responsibility Report 2013 41 Systems Measures 2013 Achievements 2013 • The production at the Intermediate Division in India will in 2012- • Executed (p. 6) 13 be certified in relation to ISO 14001. • The energy consumption for the production of 2 large products • Executed (p. 5) in India will in 2013 be reduced by 2% per produced volume. • In India, the COD content in waste water will be reduced by 3% • Executed (p. 5) • Revision of the operation of the biological waste-water treat- • Implementation plan ment plant in Denmark in the period 2012-15 where waste-wa- followed (p. 6) ter streams will be pretreated/optimized so that the potential of the biological waste water treatment plant is utilized in the best possible way. • In the period 2012-14 at least 20 formulations with low content • Implementation plan of volatile organic solvents will be developed followed (p. 5)

Anti-Corruption: Principle 10: Measures to fight corruption • Code of Business principles (s. 48) • Mapping for establishing a country based classification of risk • Implementation plan • Management approach to of corruption. Training activities for selected employees in followed (p. 6) CSR management (p. 48) 2013-14 • UN Global Compact

42 Corporate Social Responsibility Report 2013 GRI Reporting 2013 The page numbers refer to the relevant sections of this report, and AR refers to page numbers in Auriga’s Annual Report 2013.

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 http://www.cheminova.com/download/investor/financial_re- F 3 and 39 Committee ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 3 1.2 Description of essential impacts, risks and opportunities http://www.cheminova.com/download/investor/financial_re- F 16,22 and ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf 23 - AR 2013 p. 12-13 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/produ- F 8 and 9 cts__innovation.htm 2.3 Operational structure of the organization, including main divisi- http://www.cheminova.com/en/about_us/management_and_ F - ons, operating companies, subsidiaries, and joint ventures structure/organization/organization.htm 2.4 Location of organization’s headquarters - F 50 2.5 Number of countries where the organization operates, and na- http://www.cheminova.com/en/about_us/management_and_ F 10 mes of countries with either major operations or that are speci- structure/organization/organization.htm fically relevant to the sustainability issues covered in the report http://www.cheminova.com/en/contact/worldwide/worldwide.htm 2.6 Nature of ownership and legal form http://www.cheminova.com/en/about_us/management_and_ F - structure/organization/organization.htm 2.7 Markets served http://www.cheminova.com/download/investor/financial_re- F - ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 10-11 2.8 Scale of the reporting organization http://www.cheminova.com/download/investor/financial_re- F - ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 4 and notes p. 39-62 2.9 Significant changes during the reporting period regarding size, http://www.cheminova.com/download/investor/financial_re- F 4 structure, or ownership ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 5 2.10 Awards received in the reporting period We have received no awards during the reporting period F - 3. Report parameters Aspect: Report profile 3.1 Reporting period for information provided http://www.cheminova.com/download/sustainability/csr_ac- F 4 counting_principles_2013_en.pdf 3.2 Date of most recent previous report March 15, 2013 F - 3.3 Reporting cycle http://www.cheminova.com/download/sustainability/csr_ac- F - counting_principles_2013_en.pdf 3.4 Contact point for questions regarding the report or its contents - F 2 Aspect: Report scope and boundary 3.5 Process for defining report content - F 4 3.6 Boundary of the report - F 4 and 28

3.7 Limitations on the scope or boundary of the report. As stated on page 4 the CSR report provides information about F 4 Cheminova A/S, all subsidiaries and joint venture companies with an ownership of more than 50%

Corporate Social Responsibility Report 2013 43 GRI reporting 2013, continued

Information about the company Links and comments Page 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, - F 4 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, in- http://www.cheminova.com/en/sustainability/corporate_so- F - cluding assumptions and techniques underlying estimations ap- cial_responsibility/csr_policy/management_approach_to_csr_ plied to the compilation of the indicators and other information management.htm in the report http://www.cheminova.com/download/sustainability/csr_ac- counting_principles_2013_en.pdf 3.10 Explanation of the effect of any re-statements of information pro- There are no re-statements in the reporting period F - vided in earlier reports, and the reasons for such re-statement 3.11 Significant changes from previous reporting periods in the scope, There are no significant changes F - boundary, or measurement methods applied in the report 3.12 Table identifying the location of the Standard Disclosures in the The table will be published as part of the 2013 CSR report. F 43-47 report 3.13 Verification - F 40 4. Governance, commitments and engagement Aspect: Governance 4.1 Governance structure of the organization, including committees http://www.cheminova.com/download/sustainability/csr_ac- F 39 under the highest governance body responsible for specific tasks, counting_principles_2013_en.pdf such as setting strategy or organizational oversight 4.2 Indicate whether the Chair of the highest governance body is also http://www.cheminova.com/en/about_us/management_and_ F - an executive officer structure/board_of_directors/board_of_directors.htm http://www.cheminova.com/en/about_us/management_and_ structure/board_of_directors/independence.htm 4.3 For organizations that have a unitary board structure, state the http://www.cheminova.com/en/about_us/management_and_ F - number of members of the highest governance body that are in- structure/board_of_directors/board_of_directors.htm dependent and/or non-executive members 4.4 Mechanisms for shareholders and employees to provide recom- - F 20 mendations or direction to the highest governance body 4.5 Linkage between compensation for members of the highest gov- http://www.cheminova.com/download/about_us/policy/ved- F - ernance body, senior managers, and executives (including depar- erlagspolitik_uk.pdf ture arrangements) and the organisation’s performance (includ- http://www.cheminova.com/en/about_us/management_and_ ing social and environmental performance) structure/corporate_governance/report_on_corporate_gover- nance.htm http://www.cheminova.com/download/investor/financial_re- ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 16-18 4.6 Processes in place for the highest governance body to ensure con- http://www.cheminova.com/en/about_us/management_and_ F - flicts of interest are avoided structure/corporate_governance/report_on_corporate_gover- nance.htm 4.7 Process for determining the qualifications and expertise of the http://www.cheminova.com/en/about_us/management_and_ F - members of the highest governance body for guiding the organ- structure/corporate_governance/report_on_corporate_gover- isation’s strategy on economic, environmental, and social topics nance.htm 4.8 Internally developed statements of vision, values, principles etc. http://www.cheminova.com/en/about_us/mission_vision_val- F 32-34 and their implementation ues/mission_vision_values.htm http://www.cheminova.com/en/sustainability/corporate_so- cial_responsibility/csr_policy/code_of_business_principles/ code_of_business_principles.htm http://www.cheminova.com/en/sustainability/corporate_so- cial_responsibility/csr_policy/supplier_code_of_conduct.htm 4.9 Procedures of the Board for overseeing the organisation’s eco- http://www.cheminova.com/en/about_us/management_and_ F - nomic, environmental and social management and performance structure/corporate_governance/report_on_corporate_gover- nance.htm http://www.cheminova.com/download/investor/financial_re- ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013, p. 16-18

44 Corporate Social Responsibility Report 2013 Information about the company Links and comments Page 4.10 Processes for evaluating the Boards own performance http://www.cheminova.com/en/about_us/management_and_ F - structure/corporate_governance/report_on_corporate_gover- nance.htm http://www.cheminova.com/download/investor/financial_re- ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013, p. 16-18 Aspect: Commitments to external initiatives 4.11 Explanation of whether and how the precautionary approach or - F 3, 12, 13, principle is addressed by the organisation 16, 17, 22 and 23 4.12 Externally developed economic, environmental, and social char- - F 4, 40 and 48 ters, principles, or other initiatives to which the organisation sub- scribes or endorses 4.13 Memberships in associations - F 9 and 48 Aspect: Stakeholder engagement 4.14 List of stakeholder groups engaged by the organizations - F 20 4.15 Basis for identification and selection of stakeholders with whom - F 20 to engage 4.16 Approaches to stakeholder engagement, including frequency of There is a current and open dialogue with our stakeholders F 20 engagement by type and by stakeholder group 4.17 Key topics and concerns that have been raised through stakehold- http://www.mst.dk/NR/rdonlyres/DDF068A0-2986-46F6-86C5- F 16, 17, 22 er engagement, and how the organisation has responded 096249DAD5B2/0/Cheminova_VVM_udvidelse.pdf and 23 Climate changes and potential harm from plant protection products are focus areas among our stakeholders

Indicators of company’s CSR Links Page Economics Management approach http://www.cheminova.com/en/about_us/management_and_ F - structure/corporate_governance/report_on_corporate_gover- nance.htm http://www.cheminova.com/download/investor/financial_re- ports/2012/uk/auriga_ar12_uk_nav_1403131_websiteuk.pdf - AR 2012, p. 4 Aspect: Economic performance EC1 Direct economic value generated and distributed, including rev- http://www.cheminova.com/download/investor/financial_re- F - enues, operating costs, employee compensation, donations and ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf other community investments, retained earnings, and payments - AR 2013 p. 4 and 39-62 to capital providers and governments EC3 Coverage of the organization’s defined benefit plan obligations http://www.cheminova.com/download/investor/financial_re- F - ports/2013/uk/auriga_ar13_uk_nav_060314_websiteuk.pdf - AR 2013 p. 52-53 http://www.cheminova.com/download/about_us/policy/ved- erlagspolitik_uk.pdf Aspect: Market presence EC7 Procedures for local hiring and proportion of senior management http://www.cheminova.com/download/sustainability/gri_indi- F - hired from the local community at locations of significant opera- cators_labour_practices_en.pdf tion Environment Management approach http://www.cheminova.com/en/sustainability/corporate_so- F - cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect: Materials EN1 Materials used by weight or volume - F 30 Aspect: Energy EN3 Direct energy consumption by primary energy source Natural gas 294 GWh corresponding to 1059 TJ (Terra joule) F 30 LPG 0.7 GWh corresponding to 2.5 TJ Fuel oil 1.9 GWh corresponding to 6.9 TJ Biofuel 29 GWh corresponding to 104 TJ

Corporate Social Responsibility Report 2013 45 GRI reporting 2013, continued

Indicators of company’s CSR Links Page EN4 Indirect energy consumption by primary source Electricity 77.9 GWh corresponding to 280.5 TJ F 30 Aspect: Water EN8 Total water withdrawal by source - F 30 Aspect: Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent http://www.cheminova.com/en/about_us/news_views/biodi- F - to, protected areas and areas of high biodiversity value outside versity.htm protected areas http://www.cheminova.com/en/about_us/news_views/pro- duction_sites_and_natural_resorts.htm EN12 Description of significant impacts of activities, products, and ser- http://www.cheminova.com/en/about_us/news_views/biodi- F - vices on biodiversity in protected areas and areas of high biodiversity.htm versity value outside protected areas http://www.cheminova.com/en/about_us/news_views/pro- duction_sites_and_natural_resorts.htm

Aspect: Emissions, effluents and waster EN16 Total direct and indirect greenhouse gas emissions by weight http://www.cheminova.com/download/sustainability/csr_ac- F 30 counting_principles_2013_en.pdf EN21 Total water discharge by quality and destination - F 30 EN22 Total weight of waste by type and disposal method - F 30 EN23 Total number and volume of significant spills - P 30 Aspect: Products and services EN26 Initiatives to mitigate environmental impacts of products and ser- http://www.cheminova.com/en/about_us/news_views/safety_ F 10-11, 16-19 vices, and extent of impact mitigation and_health.htm and 22-23 Labour practices and decent work Management approach http://www.cheminova.com/en/sustainability/corporate_so- F 20 and 32-34 cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect:Occupational health and safety LA7 Rates of injury, occupational diseases, lost days, and absentee- Only for the manufacturing companies P 30 ism, and number of work-related facilities by region LA8 Education, training, counselling, prevention, and risk-control pro- http://www.cheminova.com/download/sustainability/gri_indi- F 24-25 grammes in place to assist workforce members, their families, or cators_labour_practices_en.pdf community members regarding serious diseases Human Rights Management approach http://www.cheminova.com/en/sustainability/corporate_so- F 34 and 49 cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect: Freedom of association and collective bargaining HR5 Operations identified in which the right to exercise freedom of as- http://www.cheminova.com/download/sustainability/gri_indi- F - sociation and collective bargaining may be at significant risk, and cators_labour_practices_en.pdf actions taken to support these rights http://www.cheminova.com/en/sustainability/corporate_so- cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect: Child labour HR6 Operations identified as having significant risk for incidents of http://www.cheminova.com/download/sustainability/gri_indi- F - child labour, and measures taken to contribute to the elimination cators_labour_practices_en.pdf of child labour http://www.cheminova.com/en/sustainability/corporate_so- cial_responsibility/csr_policy/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/download/sustainability/gri_indi- F - forced or compulsory labour, and measures to contribute to the cators_labour_practices_en.pdf elimination of forced or compulsory labour http://www.cheminova.com/en/sustainability/corporate_so- cial_responsibility/csr_policy/management_approach_to_csr_ management.htm

46 Corporate Social Responsibility Report 2013 Indicators of company’s CSR Links Page Society Management approach http://www.cheminova.com/en/sustainability/corporate_so- F 33 and 48 cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect: Community S01 Impacts of operations on communities, including entering, - F 20 operating, and exiting Aspect: Corruption SO3 Percentage of employees trained in organisation’s anti-corruption http://www.cheminova.com/en/sustainability/corporate_so- P - policies and procedures cial_responsibility/csr_policy/management_approach_to_csr_ management.htm Aspect: Public policy SO5 Public policy positions and participation in public policy develop- - P 20 ment and lobbying Product responsibility Management approach http://www.cheminova.com/en/sustainability/corporate_so- F 10-11 and 48 cial_responsibility/csr_policy/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/news_views/safety_ F - and services are assessed for improvement, and percentage of and_health.htm significant products and services categories subject to such procedures Aspedt: Product and service labelling PR3 Type of product and service information required by procedures, http://www.cheminova.com/en/about_us/news_views/safety_ F - and percentage of significant products and services subject to and_health.htm such information requirements Covering all plant protection products

Corporate Social Responsibility Report 2013 47 Special references

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

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

Code of Business Principles A description of the company’s Code of Business Prin- http://www.cheminova.com/en/sustainability/ ciples which must be complied with by all employees corporate_social_responsibility/csr_policy/code_ and which support responsibility in relation to manage- of_business_principles.htm ment, cooperation and society

Mission, vision and values A description of the company’s mission, vision and val- http://www.cheminova.com/en/about_us/mis- ues sion_vision_values/mission_vision_values.htm

Supplier Code of Conduct The fundamental principles which Cheminova’s suppli- http://www.cheminova.com/en/sustainability/ ers have to comply with corporate_social_responsibility/csr_policy/sup- plier_code_of_conduct.htm

CSR Accounting Principles The principles for data collection on environment, safe- http://www.cheminova.com/en/sustainability/cor- ty and health porate_social_responsibility/csr_documentation/ csr_accounting_principles.htm

FAO’s Code of Conduct Voluntary international standards of responsibility and http://www.fao.org/docrep/005/y4544e/ behaviour concerning distribution and use of pesticides y4544e00.htm

UN’s Millennium 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 manage- http://www.cheminova.com/en/sustainability/cor- ment porate_social_responsibility/csr_policy/manage- ment_approach_to_csr_management.htm

Principles of good corporate management The statutory report on Corporate Governance 2011 http://www.cheminova.com/en/about_us/man- – comments on recommendation on good corporate agement_and_structure/corporate_governance/ management report_on_the_financial_reporting_process_and_ internal_controls.htm

48 Corporate Social Responsibility Report 2013 Glossary

Active ingredient: GEC: Omethoate: Active chemical in its pure or technical form. Global Executive Committee. Cheminova’s Insecticide among others used to control Auditing: day-to-day management group. mites. Review of accounts. Global Compact: Pesticides (plant protection products): Chemical synthesis: A UN initiative giving ten general principles Collective name for insecticides, herbicides Process, where chemical compounds react for companies’ work with corporate social re- and fungicides. with each other so that new compounds are sponsibility. PIC: formed. GRI: Prior Informed Consent (Prior informed con- Class I product: Global Reporting Initiative with guideline for sent that has to be established before a prod- A product, which according to WHO’s re- reporting on CSR. uct from the PIC list is exported). commended guidelines is classified as highly HPLC: Product stewardship: hazardous or extremely hazardous. High-performance liquid chromatography – Overall description of responsible manage- CLP: a very common analysis methos of chemical ment of a company’s products. Classification, Labelling and Packaging. The compounds. Ramsar areas: CLP Regulation ensures that the hazards HSE: Wetlands where wildlife is protected accord- presented by chemicals are clearly commu- Health, Safety & Environment. ing to the convention of wetlands of interna- nicated to workers and consumers in the ISO 14001: tional importance, particularly as habitats for European Union through classification and International environmental certification birds. labelling of chemicals. covering the surrounding environment. REACH: COD: ISO 9001: Registration, Evaluation and Authorisation of Chemical Oxygen Demand - measure for the International certification of quality manage- Chemicals (Common EU regulation on docu- content of organic compounds in water. ment system. mentation requirements concerning chemicals). CSR: KPI: Corporate Social Responsibility. Social, en- Key Performance Indicator. Registration data: vironmental and ethical demands made be- Test results and documentation that must be tween companies, customers, interested par- Low VOC: submitted to the authorities in order to obtain ties and collaboration partners. Low Volatile Organic Compound, defined as registration certificates for import and sales maximum 20% evaporation at 115°C in 60 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 be California Department of Pesticide Reglation, Objectives concerning responsible conduct, diluted with water to a low concentrate spray February 9, 2005. adhered to by Cheminova. 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 the Insecticide, in Mexico mostly used in cotton from each of the three core areas Safety, distribution and use of pesticides. and vegetables. Health and Livelihood. Fenamiphos: Methyl parathion: Suspension concentrate: Insecticide used against soil-living pests (ne- Insecticide mostly used in cotton. An active ingredient in solid form suspended matodes). in water with surfactants which enables the Microcapsules (microcapsule formulation): Formulation: product to be diluted with water to a low con- Fluid product where the active ingredient is centrate spray liquid. Active ingredient to which has been added ac- encapsulated in microscopic capsules which cessory agents that make the product a ready- are dispersed in water. Third-party products: to-use as control agent. Sales products not produced by Cheminova Micronutrients: but bought from other suppliers. Fossil fuel: Mineral fertiliser which the plants need in Coal, oil and gas. small quantities. WHO: World Health Organisation. GC: Nm3: Gas Chromotography: A common type of Normal cubic meter (volume at standard pres- chromatography used in analytical chemistry sure and temperature). for separating and analysing compounds that can be vaporized without decomposition. OHSAS 18001: International environmental certification co- GDP: vering the working environment. Gross Domestic Product.

Corporate Social Responsibility Report 2013 49 A HELPINGcompany in YOU GROW

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