2012 Corporate Social Responsibility (CSR)

HELPING YOU GROW

Corporate Social Responsibility Report 2012 OUR VISION We create results for our customers by being a sustainable and innovative world-class supplier of a broad range of quality crop protectionCorporate products. Value creation Social shall match the best among peer companies to the benefit of all stakeholders. Responsibility Report 2012

Contents

Introduction 3 More plant protection, less chemistry, fewer resources 23 About the report 4 CSR activities in India 24 Fulfilling CSR targets for 2012 5 Successful launch of a new banana CSR targets for 2013 and beyond 7 project in Brazil 27 Cheminova’s business activities 8 Production 29 Plant protection 9 Human Resources 32 Product stewardship 10 Strategy and action plan 35 New requirements for registration of CSR strategy 36 plant protection products in EU 12 Action plan 38 Anti-counterfeit initiatives in Russia and CIS countries 14 More information 40 Portrait of Headland’s production unit 16 Management statement 41 Global formulation development and support 18 Assurance statement 42 Supplier management – Strengthening the UN Global Compact 43 technical competence globally 20 GRI reporting 2012 45 Openness and dialogue 21 Special references 49 Chemistry with Care 22 Glossary 50

Date of issue: March 15, 2013. The report is a translation of the Danish original edition Contact: Lars-Erik Kruse Pedersen ([email protected])

2 Corporate Social Responsibility Report 2012 Introduction

”Social responsibility is integrated into the daily operations and supports the successful development of the company. We believe improvements can be achieved if we set ambitious goals and measure the results. Therefore, we have now formu- lated a CSR strategy and defined new targets to ensure that Cheminova’s mission on an ongoing basis is translated into increased food production through more plant protection, less chemistry and fewer resources.”

Kurt Pedersen Kaalund

The starting point for the CSR activities is Under the headline ’Helping you Grow - implementation of the principles of UN’s our mission to contribute to the world’s Chemistry with Care’ we have now estab- Global Compact, and thereby also Chemi- food supply, and many important goals lished new goals for our efforts and de- nova’s contribution to UN’s objective on have been achieved. As the first company veloped indices for measurement of the eradication of hunger and poverty, which in our business we have completed a results we have achieved. Through our is a chief aim in the UN millennium goals. phase-out of the most toxic products, product portfolio we will help to increase We report according to GRI level B and the so-called WHO class I products, in de- food supply, reduce exposure to chemical the rules laid down in the Danish finan- veloping countries. Product stewardship products and use fewer resources to ma- cial statements act. activities and village projects in India and nufacture the products. In short: More Brazil have subsequently been in focus. plant protection, less chemistry, fewer Also in 2012, our many stakeholders have Energy optimization, improvements with resources. shown great interest in our work with respect to environment, safety and qual- CSR and the dilemmas and challenges as- ity at our production plants, supplier man- The indices we have developed and which sociated with it. The dialogue has given agement and approval of products have are described in the report allow us to us valuable input and inspiration for the been other important focus areas. measure the results we have achieved, work also with these activities. and in the CSR Report for 2013 and on- The good results have been achieved wards we will be able to visualize the pro- It is a wish from my colleagues and myself through the efforts of my many col- gress made. We believe that ambitious that the report will be well received, and leagues in their everyday business and goals and measuring of the results will that it will form the basis of a continued through a good understanding of the result in increased awareness through- positive dialogue about CSR. company mission and values. We are out the organization and further improve- constantly working to ensure this intern- ment of the results. Kurt Pedersen Kaalund al understanding and support, so the President & CEO values are practiced. With many mile- The CSR Report for 2012 in full consti- Cheminova A/S stones reached and good results achiev- tutes the annual reporting, which is re- ed the time has come to challenge each quired for members of Global Compact. other with new ambitious goals. The report describes our progress on

Corporate Social Responsibility Report 2012 3 About the report

Biomass at the factory in India. See page 30. This report provides a status on Chemi- nova’s work within the area of Corporate Social Responsibility (CSR) in the calendar year 2012 and thereby fulfils the reporting requirements set out in Section 99a of the Danish Financial Statements Act (Års- regnskabsloven) in accordance with the exception in paragraph 7. The CSR report provides information about Cheminova A/S, all subsidiaries and joint venture companies with an ownership of more than 50%. The target audience of this report is employees, the authorities, shareholders, customers and suppliers as well as any individuals and organisations who may have an interest in Cheminova. The inspiration for selecting the specific the world’s food supply. Efficient agricul- It is our intention that the report with issues addressed in the present report ture is one of the prerequisites for achiev- its detailed articles on specific activities is based on input and feedback from ing the UN goal ‘End poverty 2015 – The from 2012 will provide the reader with the stakeholders which have shown an Millennium Development Goals’, which insight and understanding of the scope interest in Cheminova’s CSR activities among other things are about reducing of our CSR work, and how these activities throughout the year. hunger, poverty, child mortality and im- are an integrated part of the day to day proving public health. Nevertheless, Che- business of the company. Content of the report minova faces a number of dilemmas as The report includes facts and short sec- a supplier of products to societies and Global Compact and Global Reporting tions on fulfilment of set targets. Further- countries where the conditions are sig- Initiative (GRI) more, the report contains detailed art- nificantly different from those in Den- The report provides an update on our icles on progress in selected focus areas mark, in particular when it comes to progress under each of the ten principles from 2012 and special initiatives with safety and correct use of the products. As of UN’s Global Compact as well as report- importance to our business area. The a company we have a shared responsibil- ing on GRI indicators at level B. CSR targets and focus areas for 2013 and ity to improve environmental and work- onwards are presented as an overview ing conditions, especially in connection Organisation of the CSR work table and as a detailed action plan for the with our own production in developing Organisationally, the CSR work is rooted individual focus areas. countries, but also through supplier con- in Cheminova’s day-to-day top manage- trol and product stewardship. The CSR ment, the Global Executive Committee Additional information on Cheminova’s report describes how we address such (GEC), with whom the CSR work has been CSR activities including progress on the issues. agreed and who has approved this re- 2012 focus areas and the targets for 2013 port. The focus areas are selected by the is available on our home page www.che- CSR Strategy CSR steering group with the objective of minova.com. Cheminova’s new strategy for future providing an enlightening and systematic work on CSR ’Helping you Grow – Chem- reporting on our CSR activities within a Dilemmas and shared responsibility istry with Care’ is presented in full along number of important areas. It is Cheminova’s mission to contribute to side with the specific action plan for 2013 and onwards.

4 Corporate Social Responsibility Report 2012 Fulfilling CSR targets for 2012

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

Target Fulfilment Village projects India: Extention of the ’Aakash Ganga’ water conservation project Project expanded with 25 acres (ca 10 hectares)

India: Continuation of the project ’Saheli’ on women empowerment Project expanded with further 5 villages on safety, health and livelihood India: Project on specific improvements, which has been accom- Project expanded with the villages Ekalduna and plished in the two villages Pabdara and Ksheersagar, to be expanded Narukheri in further two villages Brazil: Project among small-scale banana farmers in the state of Continued as planned. The possibilities of con- Goias to be continued tinued cooperation with the Ministry of Agricul- ture is examined Brazil: A project on community development and safe and environ- The project which is focused on low environmen- mentally friendly control of plant diseases to be launched among tal impact has been launched small-scale banana farmers in an environmentally sensitive area in the state of São Paulo Helping you Grow – Chemistry with Care With selected years from the period 2000-2010 as baseline, an index An index based on plant protection products pro- will be prepared illustrating the area of farm land where the crops duced by Cheminova has been prepared and thus the food production is protected by Cheminova’s products. The index will be made on the basis of valid data from a relevant basic year With selected years from the period 2000-2010 as baseline, an index An index based on the use of xenobiotic chem- will be prepared illustrating the quantity of Cheminova plant protec- icals in Cheminova’s plant protection products tion products used per area unit. The index will be made on the basis has been prepared of valid data from a relevant basic year With selected years from the period 2000-2010 as baseline, an in- An index based on the use of fossil fuels for the dex will be prepared illustrating selected, essential resources used production of intermediates and finished prod- by Cheminova to manufacture plant protection products compared ucts at Cheminova’s factories in Denmark and In- to the area of farm land treated. The index will be made on the basis dia has been prepared of valid data from a relevant basic year In the period 2012-14, development of at least 20 formulations with At the end of 2012, 12 formulations had been de- a low content of volatile organic solvents veloped In the period 2012-14, lower average toxicity of newly developed The part of unclassified products is more or less formulations measured through the classification of the formula- unchanged from 2011 to 2012. No class I prod- tions will be reached ucts have been developed, but more class II and less class III products have been developed Production India: Energy consumption for the production of three large prod- Energy consumption reduced by 12% compared ucts to be reduced by 3% per produced volume to 2011

Corporate Social Responsibility Report 2012 5 Target Fulfilment Production India: Frequency and seriousness of incidents and accidents at work No accidents at work. Frequency of non-report- to be reduced by 5% able incidents at work reduced by 40%, seriousness rate reduced by 10% India: The production at the Intermediate Division to be certified ac- Work is proceeding as planned cording to ISO 14001 and OHSAS 18001 in 2013 Denmark: Re-certification of the company’s environmental manage- Certificates renewed ment system according to ISO 14001 and OHSAS 18001 Denmark: Certification of the company’s energy management sys- Certification achieved, but the planned fulfilment tem according to ISO 50001 of the additional demands from the Danish En- ergy Agency was not acheived Denmark: Education and training of employees in better attitudes The programme was spread to half as many em- and safer behaviour according to the programme SAFE being spread ployees as planned in the organisation during 2012-13 Denmark: Quantity of hazardous waste from production of a fungi- Quantity of waste reduced by 60% cide to be reduced by half Denmark: Energy consumption for the production of an insecticide It has not been possible to reduce the energy to be reduced by 8% consumption Australia: The water consumption in production cleaning processes Experiments have been successfully completed. will be minimized as part of the plant’s water saving programme Final validation expected in 2013 Australia: It will be ensured that external contractors work in accord- Manual for external contractors implemented as ance with our demands on health, safety and environment planned EU chemicals regulation Registration of the pre-registered substances that have to be regis- Plan for registration is followed tered before the end of 2013 Supplier management In Region International, the supplier management will be rooted In all regions, supplier management is now root- with a person with a technical background ed with a person with technical background Human Resources Target: Maintain knowledge of the company’s mission, vision and The leaflet has been published in Danish, English, values. German, Spanish, Portuguese and Russian and Activity: A storytelling leaflet of the company’s values is to be distrib- distributed to all employees uted to all employees globally. The leaflet will be published in Danish and English Implementation of values to all employees in Denmark. Meetings and activities completed with allem- Activity: All managers have at meetings or in other activities worked ployees as planned with implementation to the employees In 2013 an employee survey will be accomplished in the global or- According to the newly established HR strategy ganisation. The survey will give a overview of the employees’ know- the survey is postponed until 2014 ledge of the company’s values. The survey may be part of another investigation Preparation of a global HR strategy to ensure increased and more A global HR strategy for the period up to the end structured focus on Human Resources in Cheminova. The strategy of 2016 covering attraction, development and re- will consist of elements which support Cheminova’s business strat- tention of employees has been approved egy up to 2015 and it is expected to be rolled out during the next years

6 Corporate Social Responsibility Report 2012 CSR targets for 2013 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 38.

Village projects Product stewardship United Kingdom India • In India, Cheminova takes part in a • In 2013, environmental and safety con- • In 2013, further 25 acres will be in- project where the opportunities to re- ditions will be reassessed and applica- cluded in the project ”Aakash Ganga” turn used packaging are examined with tions for changes will be sent to the – conservation of rain water that other- focus on environmentally correct dis- authorities. wise would be lost through run-off. posal. Germany • In the Saheli project on women em- • In 2013, a filter to reduce the emission Production powerment on safety, health and liveli- of dust from the production will be in- hood establishment of self-help groups India stalled. will be supported. • The energy consumption for the pro- • The effect of the project activity will be duction of two large products will be Supplier management evaluated for two villages and a plan reduced by 2% per produced volume • In 2013, a number of the company’s will be made how the project can con- in 2013. employees will be trained to audit sup- tinue without the participation of Che- • The content of COD in the treated pliers. minova. waste water will be reduced by 3% in Brazil 2013. Human Resources • The project among small-scale banana • The frequency and seriousness of inci- • In 2013, a global policy and procedure, farmers in the state of Goias will be con- dents at work will be reduced by 2% in describing how Cheminova can attract tinued in 2013 and so will the dialogue 2013. the best match for each position, will with the Ministry of Agriculture with • In 2013 the production at the Interme- be established. the purpose of establishing a closer diate Division will be certified in rela- • In 2013-14, a new appraisal system will cooperation. tion to ISO 14001 and OHSAS 18001. be developed and implemented. The • The project on safe and environmental- Denmark system will among others be linked to the KPIs and values of the company. All ly friendly control of plant diseases will • Operation of the biological waste- employees will have minimum one ap- in 2013 be extended to more banana water treatment plant will be reasses- praisal per year. farmers in an environmentally sensitive sed in 2012-15 so that the potential of area in the state of São Paulo. the plant is utilised in the best possible • In 2013, visible and successful career way. paths will be established globally. Also Helping you Grow – Chemistry with Care a new title and benefit structure will • The quantity of waste per produced align role and responsibilities of each • Index 1*: More plant protection. To be unit and Cheminova’s total costs for specific key position. reported for 2013 and onwards. treatment of hazardous waste will per • Index 2*: Less chemistry. To be re- year in 2012-14 be reduced by 5% and • Mapping for establishing a country ported for 2013 and onwards. 10% respectively. based classification of risk of corruption. Training activities for selected • Index 3*: Less resources. To be re- Australia employees. ported for 2013 and onwards. • Obtain certification of the company’s • In Denmark the programme SAFE will • At least 20 formulations with low con- environmental management system in be continued to ensure that all employ- tent of volatile organic solvents will be relation to OHSAS 18001 in 2014. ees are educated and involved by the developed in the period 2012-14. • In 2013, the waste water treatment will end of 2013. • Lower average toxicity of newly devel- be improved and renewed permit for oped formulations measured through discharge will be applied for. *Read more on page 23. classification of the formulations in the years 2012-14.

Corporate Social Responsibility Report 2012 7 Cheminova’s business activities

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

Market with fruit and vegetables in Brazil.

8 Corporate Social Responsibility Report 2012 Plant protection

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

The framework for the company’s busi- FAO, estimates that by 2050 70% more Registration work is detailed in a separ- ness activities is Cheminova’s Code of food than today has to be produced - on ate article (see page 12). On Cheminova’s Business Principles and Cheminova’s mis- roughly the same agricultural area, which website a brief description of the general sion, vision and values. These support is already under cultivation. The yield per approval conditions for plant protection and are consistent with the UN Global hectare should increase significantly just products can be found. Compact, the European Chemical Indus- to keep pace with the growing popula- try Council’s (CEFIC) Responsible Care tion. A consequence will be an increasing Cheminova also supplies active ingre- programme and the FAO Code of Con- need to protect crops, which falls well dients which are used for further product. In addition, Cheminova is a member within our mission and business area. cessing to produce ready-to-use plant of various global, regional and local pro- protection products. Moreover, we also fessional organisations like for instance Products manufacture and sell a number of fine CropLife and resistance groups under The company produces herbicides, insec- chemicals for industrial use as well as CropLife. ticides and fungicides. The products are micronutrients for agriculture. sold primarily as ready-to-use plant pro- Need for plant protection tection products under our own brands, Read more about the activities in Auriga’s UN’s Agriculture and Food Organization, own registrations (use permits) and labels. Annual Report.

Plant protection.

Corporate Social Responsibility Report 2012 9 Product stewardship

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

Cheminova’s sales in 2012 Product stewardship closeable cardboard packaging which has Cheminova’s sales of plant protection The underlying principle for Cheminova’s been protected from improper use and products include supplies of both active stewardship of plant protection products which is easy to handle when slug pellets ingredients and ready-to-use formula- is risk reduction. The cornerstones are have to be applied. tions to more than 100 countries. In 2012 observance of national legislation con- like the previous year, most sales were cerning approval, marketing and sale of Reduction of risks handled by Cheminova’s subsidiaries. plant protection products in all countries The following highlights the risk reducing where Cheminova’s products are sold. In activities in Brazil and India, respectively, For further comments on distribution addition, export is subject to EU legisla- where the last class I products were sold between product types and geography, tion and the rules of the Rotterdam con- in 2010. please refer to Auriga’s annual report. vention concerning ’prior informed consent’ (PIC). Furthermore we comply with Brazil Sales of the most toxic products the rules of FAO’s Code of Conduct, and In Brazil, Cheminova’s sales of methyl pa- After the previous year’s phase-out of the we are members of national/regional rathion in the form of WHO class I prod- most toxic products in developing coun- trade associations engaged in risk reduc- ucts have stopped and been replaced by tries sales have been replaced by less tion in connection with the use of plant less toxic insecticides, such as micro-en- toxic plant protection products. Products protection products. Further, we do not capsulated methyl parathion (WHO class belonging to WHO’s class Ia ’extremely sell any products belonging to WHO Class II) used in the growing of soybeans and hazardous’ and Ib ’highly hazardous’ are Ia and Ib outside the USA, Canada, EU, cotton at professional large-scale farms. no longer sold to farmers in developing Australia and Japan. Sales of this product exclusively takes countries. place in large packaging which are not at- In 2012, training and guidance on correct tractive to small-scale farmers, and sales In 2012, the total sales to all countries of and safe use of Cheminova’s products are limited to states where soybeans and class I products made up less than 1% of have been an integrated part of the daily cotton are grown by professional farmers. total Cheminova sales. The breakdown of marketing activities in developing coun- products by countries can be seen in the tries. Labelling and instructions for use, Cheminova’s Brazilian subsidiary is con- table below personal contact with distributors and nected to a hotline open around the users plus participation in campaigns are clock for reporting and first aid informa- Overview of which class I ready-to-use some of the tools employed to promote tion in case of spillage and accidents. products Cheminova sold in 2012 and safety. The quarterly reporting to the CSR where steering committee on product stew- In 2012, a series of 95 farmer and custom- ardship from countries and regions has er meetings with all together 7.600 par- Country Product been continued in 2012. ticipants were conducted. The meetings Australia Methyl parathion EC had a.o. focus on safe and correct use of Methomyl EC Award for a newly developed packaging plant protection products and personal Omethoate EC Together with a supplier, Cheminova’s protection equipment. German subsidiary has received an USA Methyl parathion EC award for a newly developed cardboard Cheminova’s subsidiary has continued its Spain Fenamiphos EC packaging making control of slugs easier partnership in the national organisation EC = Emulsion concentrate and safer. The award was given for a re- for handling of used packaging (inpEV)

10 Corporate Social Responsibility Report 2012 whose purpose it is to promote proper disposal of used crop protection product containers. The organisation reports an increase in the tonnage of containers collected in 2012. In addition to these activities projects among banana farmers have continued, see page 27.

India The extensive safe use programme with training of dealers and farmers has been further expanded to include more than 600,000 persons in 2012. The programme also includes posters, video shows, de- monstrations and hand out of personal protection kits and first aid kits. The activities are carried out in collaboration with local authorities wherever possible. The programme is being continued just as the CSR activities in the villages described on page 24.

Used packaging is recycled industrially in Brazil. Cheminova is part of the national organisation for handling of used packaging, inpEV, in Brazil.

Corporate Social Responsibility Report 2012 11 New requirements for registration of plant protection products in EU

Cheminova’s products can only be sold after a very thorough assessment by the authorities.

By Liz Mcquarrie, Vice President, Registration & Biological Development

A plant protection product can not be ment and are allowed to be used in mod- to provide product specific refinements registered for use in the European Union ern plant protection products. Although or if necessary full field trials can be per- until it has been thoroughly tested and it this first review of active substances is formed to provide exposure data based is scientifically established that: now complete, new data are continually on actual use. Using this step wise ap- • there are no harmful effects to human required and new methods of testing are proach it is then possible to build up an health (consumers, farmers, local by- continually developed. Some of the as- accurate assessment, generating further standers). sessments which need to be conducted data where it is considered most needed. as part of the review are described in this • there are no unacceptable effects on article. Consumers: the environment (soil, groundwater, Another key aspect to human risk assess- surface waters, and non-target organ- Human health risk assessment ment is potential exposure from the con- isms such as birds, mammals, bees, Ensuring acceptable risk to humans is sumption of residues in or on food. Before earthworms). considered of paramount importance use of a plant protection product on any • there is sufficient efficacy against- tar when authorizing any application for use crop that may be consumed by humans get pests. of a plant protection product in Europe. or animals it must be demonstrated that Exposure may take place through hand- the potential residues remaining on the A plant protection product will only be ling of the products, being present in a crop will not cause harmful effects. considered safe for use in the field once treated area or through consumption of the risk has been shown to be acceptable treated crops. The magnitude of these residues includ- over a wide range of tests. It is time-con- ing a number of metabolites is then suming, complex and expensive to regis- Farmers, workers and bystanders: determined through supervised crop ter a plant protection product in Europe, Focus is not only on farmers and ope- residue trials in order to establish the however the regulatory framework is rators who may apply the product ac- typical and maximum residue levels to clear and harmonized, ensuring the cording to safe label instructions using be expected when the product is used highest standards of product safety for personal protective equipment, such as according to the label instructions. This the consumer and the environment. gloves and overalls. Focus is also on work- information is used to set Maximum Resi- ers who may re-enter the treated crop to due Levels (MRLs) in each crop where the Review of substances already in the perform crop inspection, maintenance or product is used. MRLs are uniform across market harvesting activities, and bystanders who the EU to avoid trade barriers All MRLs In 1993 the European Commission ini- may be nearby during the application or are independently evaluated by the Euro- tiated a harmonised review process for residents, including children, who live in pean Food Safety Authority (EFSA). The all active substances in plant protection close proximity to farmland. EFSA confirms, via modeling, that the products. This process was completed in potential of exposure to residues in food 2009 and, of approximately 950 active Potential exposure is initially calculated and water will not result in any harmful substances on the market in plant protec- using mathematical models based on effects to adults or children either in the tion products in 1993, around 250 have worst-case assumptions. If there are any short term or when considering exposure successfully completed the risk assess- concerns, further data can be generated over a lifetime.

12 Corporate Social Responsibility Report 2012 The effect of a new fungicide is documented in a potato field.

Efficacy assessment Environmental risk assessment Effects on wildlife: Field tests to prove a high degree of effi- In order to assess the risk of contamina- The environmental risk assessment for cacy against target pests, whether weeds, tion of the environment, or the potential non-target organisms aims to ensure insects or fungi, are conducted over a risk to non-target organisms, the fate and that there are no significant acute or long range of climatic conditions and fields behaviour of a compound in the environ- term changes to populations, nor to the which are representative for the type of ment must be addressed. function of the ecosystem as a whole. Set- crop to be protected. ting protection goals for ecosystems that Behaviour in soil, water and air: aim to maintain biodiversity is a complex The tests are conducted to develop the For an active substance used in, on or task. Environmental risk assessments for exact use instructions for the farmer to over soil, a study of its breakdown and effects on non-target organisms are con- make sure that the product works most mobility in a variety of soils is required. ducted based on a comprehensive suite effectively using the least amount of prod- Similarly, for substances that may be of laboratory and field ecotoxicity studies, uct. used in or near water, information must performed in accordance with recognised be supplied on their fate in the aquatic international Guidelines* to determine * International Guidelines for testing of chemicals environment. The information provided effects on a range of ‘sensitive’ indicators are available from e.g the OECD (Organisation for Economic Cooperation and Development), the ISO must be sufficient to allow predictions including birds, mammals, fish, honey- (International Organisation for Standardisation), the of environmental concentrations in soil, bees, earthworms and several others. EPPO (European and Mediterranean Plant Protec- groundwater, water, sediment and air to tion Organisation) and the OPPTS (Office of Preven- be made. tion, Pesticides and Toxic Substances).

Corporate Social Responsibility Report 2012 13 Anti-counterfeit initiatives in Russia and the CIS Countries

Fake products make up an increasing problem with great risks.

By Lena Larsen, Cheminova A/S, and Alexander Dolgikh, Cheminova Russia

Fake pesticides constitute an increasing Illegal products in CIS countries Fake products constitute an economic problem according to the European Crop Feedback from the market estimates that burden on our business and we have ex- Protection Association (ECPA). Up to 10 % up to 25% of plant protection products perienced unjustified customer claims of the applied plant protection products sold in the CIS countries (Community when illegal products are mistaken for in Europe are based on illegal imports of Independent Nations) are falsified. genuine and approved Cheminova prod- of active ingredients and faked end use The exact magnitude of the problem is ucts. products (also called counterfeit prod- unknown because it relates to black mar- ucts). None of these have been tested for ket activities. Basically law enforcement We decided to investigate the matter in safety and health risks and may contain against illegal imports and falsified prod- more detail in relation to our products any unknown and unapproved chemi- ucts is the responsibility of local authori- in order to get a better understanding of cals. Counterfeit and illegal products con- ties. However the trade organizations as the risks that might be associated with stitute health and environmental risks well as individual companies also make counterfeit products and the magnitude and undermine the strict regulation of an effort against the spread of counter- of the problem. A core team consisting plant protection products. Read more on feit products. of people from the Russian subsidiary ECPA’s website (www.ecpa.eu). and Global Supply Chain Management in Denmark was established and started to compile information.

The team noted that counterfeit plant protection products do represent a sub- stantial risk because: • The chemistry of counterfeit pesticides is often of low quality that does not fulfill legal requirements and thereby carry high risk for insufficient efficacy, damage of crops and for the health and safety of farmers. • Legislation for transport and handling of dangerous goods is often ignored by a counterfeiter. This means increased risk for leakages of low quality products to environment and consequently also a risk for human health.

Warehouses in Russia are not easily accessible.

14 Corporate Social Responsibility Report 2012 • Falsified products are, as rule, pro- This gives the opportunity for our custo- duced under inadequate safety stand- mers to quickly identify falsified products ards. when exposed to them. Moreover hid- den marks on packaging have been im- Taking both the nature of the risks and plemented. This may minimize the need the magnitude of counterfeit products for expensive and time consuming ana- issue into consideration, we concluded lyses for product identification in case of that Cheminova has a commercial as well claims occurring from unsatisfactory field as a social responsibility to participate in efficacy. preventing sales and use of falsified products, and a local initiative was launched. We believe that counterfeit plant protection products can only be prevented from Cheminova Russia’s anti-counterfeit entering the market by joint and coordi- initiative nated efforts of government agencies, In 2012, Cheminova has therefore imple- legal manufacturers, and other relevant mented an anti-counterfeit initiative for organizations. Cheminova participates selected products in order to help our in such cross-organisational activities in customers in the CIS countries to iden- Russia and other countries. tify Cheminova’s authentic products and thereby help farmers and dealers avoid falsified products.

For end-users and distributors who purchase Cheminova’s plant protection Special marking makes fraud difficult. products, we provide information about the original packaging and the properties of the original product. This information is published via the regional official distributors through mass media, and through other promotional activities (such as workshops, exhibitions, etc.)

In order to help our customers to select the original products we have added a unique hologram to the label.

Corporate Social Responsibility Report 2012 15 Portrait of Headland’s manufacturing unit

Headland is Cheminova’s subsidiary in the United Kingdom with a manufacturing unit in Wales.

By Colin Roberts, Operations Manager, Headland

Headland Agrochemicals Ltd. became Making plant performance visual “Excellence in Application” part of the Cheminova group in 2001. The core values of the operation are em- In recent years the facility has made The company operates a plant based in bedded within the culture through the further strides as a result of the conti- Wales at which liquid fertilizer products “Headland Balanced Scorecard” with four nuous improvement culture. The team – micronutrients – are developed, manu- quadrants which are: has won an award for ‘Excellence in factured and packaged. In addition to this • Safety Application’ of Business Improvement primary function of the business, the fa- Techniques. This accolade was awarded • Quality cility is also filling plant protection prod- by a local Engineering College; we were ucts, such as herbicides and fungicides. • Efficiency able to take the honour despite tough All operations carried out at the site meet • Continuous improvement competition from a number of presti- ISO 9001 Quality Management System gious companies such as Airbus UK and certificated standards. Each quadrant is interlinked, and each other larger concerns. quadrant can have a negative or positive The micronutrient business has expanded influence on another. For example, a con- Legislative Compliance, risk identifica- rapidly over the past 25 years and prod- tinuous improvement idea may lead to tion and management ucts are now exported to more than 30 efficiency savings in terms of time, but Due to the growth in production volume, countries worldwide, covering Europe, it may have a detrimental effect on the the facility now handles inventory levels the Middle East, Africa, Australasia, quality of the product. There are pos- which are governed by the United King- North and South America. ters depicting the “Headland Balanced dom COMAH regulations. (Control of Ma- Scorecard” placed in various prominent jor Accident Hazards (http://www.hse. Product integrity is never compromised locations within each department, these gov.uk/comah/)). We understand the levels of trust placed posters are complemented by a wallet- in our products by the customer and we sized laminated card which is distributed COMAH is concerned with the risks and go to great lengths to ensure that our to each employee. Together with the hazards to both people and the sur- product integrity is never compromised. artwork, a monthly Balanced Scorecard rounding environment. The majority of We adopt a number of strategies to en- Report is compiled and distributed to the hazards present on the site pose a sure that our products do not contain ex- each employee, so that everyone is risk to the environment rather than to traneous substances which could cause aware of how we are performing in rela- humans, we are therefore, adopting an agricultural, ecological or toxicological tion to these values. ERA (environmental risk assessment) problems. point of view which means we are looking

16 Corporate Social Responsibility Report 2012 Correct labelling. at events which could pose risks to flora and fauna and indirect risks to people, for Headland’s strategy against cross-contamination example via contaminated drinking water or crops. 1. Education Educating our staff by in-house and by accredited external providers about the As part of our compliance with these possible impacts of cross-contamination, considering these impacts from both the regulations, we have implemented a de- customer’s and the business’ perspective. One of the Company’s beliefs is that prod- tailed Major Accident Prevention Policy, uct integrity and product quality is the responsibility of all of our employees. a safety report and a plan for emergency measures in case of accidents. 2. Policy and procedures As a company we have developed a comprehensive and robust catalogue of poli- Employee Feedback cies and procedures which are rigorously adhered to. Written nstructtions for the formulation and filling of products are composed in such a way that cross-contami- Lee Bridgwater – Deputy Filling Manager: nation is always in mind and is always prevented. “Currently, I am the deputy filling manager at the facility. During my 10 years 3. Physical separation and segregation with the company it has developed from The production facility is built such that there is physical separation between the a small manufacturing site into an opera- Micronutrient and Plant Protection formulation and filling areas. To complement tion with an output level that has tripled the physical separation we have also implemented a highly visual approach, util- over the last few years. My overall objec- izing different coloured labels on IBCs (mini bulk containers), colour-coded pipe- tive during my working day is to ensure work and clear signage. that the team focuses on high quality levels and overall manufacturing efficien- 4. Quality testing cy with an emphasis on workforce safety. We have invested in technology which facilitates highly rigorous and sensitive test- Key environmental concerns are also at ing of our products. The testing regime adopted has a two pronged approach. First- the forefront of our activities with all her- ly, the product specifications are verified, and secondly, of equal importance is the bicides and waste segregated from other validation of the product’s integrity. A procedure was developed for the testing of materials. A focus this year has been to pre and post filling line washes, in addition to the testing of the final product itself. review the waste management systems The procedure involves the use of chromatographic analysis and was developed in to guarantee that cross-contamination collaboration with the quality control laboratories at Cheminova in Denmark. does not occur.”

Corporate Social Responsibility Report 2012 17 Global Formulation Development and Support

Development of differentiated, effective products with reduced toxicity and environmental impact is a prerequisite for providing a future-proof product portfolio.

The activities are divided into two main areas: development and support. In diffe- Fewer volatile solvents rent ways they contribute to our bringing the right products to market. App. 40 We wish to develop new modern prod- tact effect and thus the impact on cer- employees in Cheminova’s global organi- ucts containing few – or no – volatile tain insects. That is why we are working sation are engaged in formulation tech- aromatic hydrocarbons which are tradi- on finding suitable alternatives where nical tasks. tionally used as solvents in plant protec- water alone is not sufficient. tion products. The primary job within development is Solvents of biological origin to create differentiated plant protection Strict solvents standards in California We have succeeded in identifying a products; in other words to develop com- Formulations for the Californian - mar suitable solvent consisting of modified petitive products which are more- effec ket are subject to specific requirements animal fat which has been refined and tive, safer to crops, more selective and concerning their environmental impact, treated in the same manner used in the easier to use than existing products on termed VOC. VOC stands for volatile or- manufacture of biodiesel. the market. Securing patent rights is an ganic compound. integral part of the work. This solvent has a classification that al- In an effort especially to limit smog and lows the final insecticide to meet the Concerning support the primary focus is air pollution, the authorities have taken Californian requirements. At the same aimed at maintaining and extending our steps to reduce emission of these sol- time, the challenge of manufacturing product portfolio with robust and mod- vents – not just from plant protection a stable product without forming un- ern plant protection products. Solving products, but also from detergents, wanted degradation products has been technical challenges in connection with paint and cosmetics. solved. production and marketing of differentiated products is the main purpose. We have already developed water based This means that some of the advan- versions of some of our insecticides. tages of the classic products have been However, we have found that classic retained while obtaining a new VOC solvents improve dispersion and con- classification.

18 Corporate Social Responsibility Report 2012 Development work is building on global cooperation.

Challenges in production of solvent free herbicide products

The developments of solid herbicide Development departments in India and point is to ensure the safe handling and formulations over the last several years Denmark and was implemented by the complete control of dust from very po- have improved our skills working across Project and Formulation department in tent herbicides. All the way through the the global structure between the global India. This is the result of a dedicated process from design, development and formulation function in Denmark and the combined effort of our global formula- production a strict focus is maintained on operational sites in our global organisation development capabilities. preventing potential exposure of the en- tion. vironment as well as other productions at The close contact between groups of the site. Since these herbicide products Incompatible active ingredients are technical development staff in the global are effective at extremely low dose rates, successfully brought together organisation and production units gives even tiny amounts brought outside the Recently we have achieved to formulate us a full circle benefit of in-house expe- formulation plant either by air or trans- new combination products of incompat- rience on solid state formulations. This port can result in contamination and dam- ible active ingredients with a new process insures that we can further develop new age to the plant life at the factory and step that leaves no solvent in the final processes into production of advanced pose a risk for contamination of other product. This innovative process ensures solid, solvent free tailored products in products. that the active ingredients are protected the future. from their mutual incompatibility without compromising the quality of the final Such products will contribute to safe farm- herbicide product. ing with reduced input of chemicals to the farmland. Reduced amount of chemicals to control weeds Coping with dust and the risk of cross Our potent herbicide plant in India is contamination designed in collaboration between the During the production process a key

Corporate Social Responsibility Report 2012 19 Supplier management - Strengthening the technical competence globally

Active supplier management is a vital element of Cheminova’s CSR policy. In accordance with this it is integrated in the parent company and the subsidiaries.

Audit of a supplier in Spain.

In 2012, Cheminova has focused on im- A comprehensive mapping project is in proving and harmonising the supplier progress, which will create an overview audits which are carried out. Among of where and when the individual sup- other things audits have been conducted pliers are manufacturing which products. in cooperation with an external consult- At the same time, the status of the related ant to get feedback on how to plan and quality and CSR activities is collected. execute our audits in order to make them as efficient and satisfactory as possible. Likewise, the team supervises that Che- Furthermore, we want to make sure that minova’s own production sites are oper- the results obtained and the information ated in accordance with CSR policies. collected is valid and gives a representative picture of the supplier visited. Focus areas The team’s most important focus areas Global team of Technical Responsible are: Examples of inspected areas: Persons • Initiation of new production of ready- One of our 2012 CSR targets was the to-use products with suppliers Environment establishment of a global team of TRP’s Emission to air, water and soil, hand- • Auditing of suppliers with reference to (Technical Responsible Persons) cover- ling of hazardous waste. quality control and CSR ing all of Cheminova’s regions. With the appointment of a person for region in- • Maintaining an overview of suppliers, Health and work environment ternational the team is now complete, products, auditing status and activities Health check, labour protection, safety and in cooperation with colleagues from • Handling of customer complaints standards. Sourcing, Support & Scale Up and Safety, Health, Environment & Quality from Den- Exchange of experience and training Plant safety mark it handles the overall global sup- In September 2012 the team met at the Procedures and equipment e.g. for fire plier management based on the Supplier site in Denmark for two days of audit fighting, accident prevention, tidiness. Code of Conduct and Code of Business training in production plants, analysis la- Principles. boratories and filling plant. Labour conditions Child labour, wages and working hours. In the subsidiaries supplier management In this way the exchange of experience is an integrated part of day-to-day pro- could take place based on observations Product quality curement. Auditing of active ingredient of technical details and documentation Quality control and quality assurance manufacturers and formulators takes from a working plant. of products. place in cooperation with the global team which is responsible for coordination and Dialogue and cooperation maintaining the global overview of activi- constructive dialogue about improve- ties. ments.

20 Corporate Social Responsibility Report 2012 Openness and dialogue

An open dialogue with the company’s stakeholders is very important for integrating CSR in the business.

Cheminova strives to ensure and engages of good neighbour relations and partici- section on product stewardship – is an in a continued dialogue with its neigh- pation in local cultural life and activities. integrated part of the marketing of prod- bours, e.g. the local community, authori- The influence on the environment from ucts to end-users in developing countries. ties, educational institutions and politici- production plants is described elsewhere ans, while observing the limitations due in this report. Suppliers are audited with focus on the to stock exchange rules, protection of environment, safety and labour stand- sensitive personal information and gen- In 2012, two open house arrangements ards in accordance with the company’s eral data protection rules etc., as well as were held at the headquarters in Den- Supplier Code of Conduct which forms legislation and competition rules impose mark and additionally we had several the natural basis for a constructive dia- on openness. We do of course engage in a groups of visitors (students, organisations logue. continued and open dialogue with the re- etc.). Altogether more than 2,000 people levant authorities in the countries where visited the premises. Employees we operate. Also in 2012, there has been focus on im- In countries where we have manufac- plementation of the company values in A dialogue with the company’s many turing facilities we have an on-going the daily activities and in this connection stakeholders is a source of inspiration for dialogue with environmental and other a booklet in several languages has been the CSR work and the selection of focus supervising authorities, for instance the distributed to the global organisation. areas presented in the present report. Danish Environmental Protection Agency The booklet gives a number of examples and the Gujarat Pollution Board in India. illustrating how the values live in the The company actively strives to keep well- daily business. The examples deal with informed within the many subject areas Investors the impact of the company values on of relevance to its operations as well as Of primary interest to stock market ana- specific working situations for the indi- current and potential business areas. Via lysts and investors, a number of investor vidual employee and form the basis of a open literature as well as scientific pub- meetings are held both physically and on- debate on this issue. In 2012, more than lications and trade sources, the press, line and are thus accessible to all stake- 25 newsletters were sent to employees in specific searches on topics and the inter- holders, including the more than 8,000 all subsidiaries. On several occasions CSR net, information and expressions of opin- shareholders of the parent company related issues were addressed in these ion in respect of CSR related issues are Auriga. Presentations from these meet- newsletters. sought. Particularly concerning product ings including CSR related issues, among properties, side effects and applications, others, are publicly available on Auriga’s CSR is regularly discussed throughout and in general, issues linked to dilemmas and Cheminova’s websites. the global organisation in relation to the and controversies within the company’s daily business. At the local level, e.g. co- sphere of interest. Customers and suppliers operative relationship, general wellbeing CSR forms part of the dialogue with the of employees and continued education Local engagement company’s customers, many of whom have been on the agenda. In 2012 a Cheminova plays a part in the local so- appreciate to cooperate actively with global human resource strategy was ap- ciety where we operate facilities and Cheminova in promoting product stew- proved. This strategy runs until the end employ people. We contribute to the ardship and environmental responsibility of 2016 and will improve the employee local economy and offer a wide range among farmers. Information on the safe conditions in the global organisation. of job opportunities. We make a point use of products – as mentioned in the

Corporate Social Responsibility Report 2012 21 Chemistry with Care

Following up on targets.

22 Corporate Social Responsibility Report 2012 More plant protection, less chemistry, fewer resources An increasing number of more efficient products means more plant protection and therefore increased food production. By means of indices we wish to illustrate development in respect to our goals for: More plant protection, less chemistry and fewer resources. We will report on progress in the CSR-report for 2013 and onwards.

Our chemical plant protection products importance for Cheminova’s CSR work. contribute to the world’s food produc- The purpose has been to make the report- Better products means reduced burden of tion by protecting the agricultural crops ing simple and clear and based on data xenobiotic chemicals. against weeds, diseases and insect in- that can be audited by independent ex- festations. Plant protection is highly ne- perts. Reporting based on these indexes cessary in a world, where every eighth is a novel feature in our business. human being is starving, and where the agricultural production has difficulties Concerning calculation of the acreage keeping up with population growth. We covered by Cheminova’s products - which express this contribution to food produc- is part of index 1 and 2 - data calculations tion in our index by the acreage of arable and methods have been developed in co- land, which is protected by the products operation with an external source with More efficient and energy optimized produc- we have sold. extensive knowledge in this area. tion means reduced consumption of fossil fuels.

We strive to reduce the amount of xeno- Index 1: More plant protection age which is used in index 1 is correlated to biotic chemicals when we develop and Definition: Index 1 shows the development the application rates for the individual prod- optimize our products. In our index we on global scale of the acreage of arable land, ucts and the content of xenobiotic chemi- express this by means of the amount of where crops are protected by Cheminova’s cals. active substances, organic solvents and products. A reference value for the amount of xeno- emulsifiers, which were applied to arable It means that we based on Cheminova’s biotic chemicals is defined based on histo- land through our products. actual global sales of plant protection prod- rical data. ucts will make an average calculation of the Index 3: Fewer resources It is resource demanding to manufacture acreage of arable land these products have Definition: Index 3 shows the development plant protection products. We strive to covered. Data from an independent source in consumption of fossil fuels in relation to optimize our process technology in such will be used for the calculations. Products the production at Cheminova’s production a manner, that we consume less energy in distributed for other companies will not be plants in India and Denmark. included, as they do not reveal the exact production of the products. In our index It means that we define a reference value for recipe due to protection of intellectual pro- we have decided to express the energy energy consumption in relation to the properties. consumption by the amount of fossil duction from historical data. Going forward fuels. A reference value is defined based on histo- we will correlate our actual consumption rical data. of energy from fossil fuels (summarized for Follow-up on targets Index 2: Less chemistry all products and all production plants) with Development of indexes Definition: Index 2 shows the development this reference value. Fossil fuels will enter the calculations according to their calorific In 2012 a meticulous work on develop- in the amount of xenobiotic (not naturally values. Electricity will enter the calculations ment and establisment of the three occuring) chemicals applied through Chemi- nova’s products by area unit. as net consumption since Cheminova both indexes designed for illustrating the de- produces and consumes electricity. velopment in the three areas of significant It means that the same calculation of acre-

Corporate Social Responsibility Report 2012 23 CSR activities in India

At village level the activities are primarily about agricultural development in project villages in several states. Additionally activities are carried out on water conservation, women empowerment as well as engagement in the social development in neighbour villages near our factory site.

Engagement in the local We provided water coolers along with a funding the salary of a teacher in a Pri- water purifier to Public School Kharod for mary School in the village Kharod. The community in India better health of students. We provided school is run by the humanitarian orga- sweaters during the winter 2012 to 70 nisation Human Resources Development In the local community where we oper- students and staff of a Primary School in Mandal. Further we have provided a ate manufacturing facilities, our activi- Pardimokha. scholarship for higher education of one ties play a positive part for the- econo student at the engineering college. With mical livelihood and development of Education a view to motivate students of Public the area. Further, employees with their Cheminova’s assistance to the local School Kharod we sponsored trophies families are part of the daily life of the schools is directed at private and public for various inter class and inter group local community. schools and it extends from simple sup- competitions. We also allowed students port of note books, distributing a booklet of the Engineering and Science Colleges Local cooperation on parenting, support to sports events to to visit our factory for helping them to In cooperation with local leaders and other interested individuals we support projects with the scope of improving the living conditions for the local population. Therefore we support and participate in several initiatives mainly centred on health and education. However our support also has covered a variety of other activities including sponsoring sports trophies and electrification of street lights.

Public health At occasions, we have organized medical days, where the broad population in a village is offered free medical consultation by doctors and nurses and given medical treatment and assistance including glas- ses.

Further, we have recently provided an electrolyte analyser for improved blood analyses and diagnoses to the Welcare Hospital in the Kharod village. School books contribute well to education at the local schools.

24 Corporate Social Responsibility Report 2012 understand the kind of skills required for working in the industry. Also career ori- ented guidance was provided to students of the Management Institute of Anklesh- war.

Tree Plantation GIDC, which is an industrial development authority of the Gujarat environmental administration, has earmarked certain plots as Green Zone in the Panoli Indu- strial Area and entrusted Cheminova with a belt at the entry of industrial estate. As Appreciation of SAHELI project by the Royal Danish Embassy in New Delhi: H.E. Ambassador, Mr.Freddy a part of the Green Zone development Svane of the Royal Danish Embassy, New Delhi, accepted an invitation to visit the village Ekalduna. During activities, we have planted more than the daylong visit the Ambassador expressed a keen interest in the living conditions of the villagers, their 200 trees in this area. families and the school children. He also engaged himself in a conversation with the members of the SAHELI group launched by village women earlier this year.

Projects in villages Village Ekalduna in Madhya Pradesh • Further strengthening of partnership The focus on farm advisory services con- with the department of agriculture ex- Follow-up on targets tinued during 2012 as this has been the tension service should be considered. most important area for the villagers. The • The participation in the training ses- Project villages project directly covers more than 200 sions has increased. In 2012 the focus of activities in the farmers in the model village but in ad- • The focus on safety when handling che- model villages has been continued im- dition the outreach has been to approxi- mical products has increased. provement of agriculture practises sup- mately 2200 farmers in the surroundings plemented with various aspects of gen- of Ekalduna. An impact review of the ac- • The SAHELI initiative needs strengt- eral community development. tivities in this village has been performed hening. (Cheminova’s team has re- in cooperation with the Royal Danish cently mobilized local resources and Impact assessment of two additional vil- Embassy. The following main conclusions is working in partnership with govern- lages has been completed in Ekalduna have been made: ment departments on women empowerment socially, economically and and Narukheri. In the latter an internal • The project has contributed to a posi- politically). assessment has been performed and this tive development in the area by a signi- will be followed up by an independent ficantly improved farming productivity evaluation in 2013. (increased yield and cost reduction).

Corporate Social Responsibility Report 2012 25 Professor Ayyappa Masagi.

CSR activities in India, continued

The Aakash Ganga project is now covering about 10 ha

Report from Mr. Harsh Tiwari, Assist- a difference in rain fed agriculture. It is ant Regional Manager, Manager of the easy to capture rain water and ’store it in Aakash Ganga project in Maharashtra: subsoil’ for later use. Simple cost-effective methods of plowing trenches across Prospects of conserving water in the fields were demonstrated for the rainfed agriculture farmers helping them to understand and After successful implementation of adopt this technique so they can grow a the Aakash Ganga project in 2011, the successful crop and harvest a decent re- baton of success was extended in 2012 turn in times of scanty rain. (Readmore in the Vidharbha region of Maharashtra. about the prospects of conserving water The project was also continued in the in rainfed agriculture on our website). Gulbarga district of the adjoining state Karnataka. Overall 25 acres are brought A well known Professor of water under the project. conservation participates The concept explained to the growers Cheminova India is looking at the pro- was very much appreciated. Halfway spects of conserving rain water for through the crop growth period, we in- growing better crops in rainfed agricul- vited Prof. Ayyappa Masagi (known as ture. Under the Aakash Ganga project ’Water Gandhi’), the father of this con- Cheminova India had implemented the cept, to share his success stories from initiative in farmers holdings to demon- other states of India with farmers in Kar- strate simple techniques of water con- nataka. servation. The growers were very happy and ’It is your water that goes down the thankful for us bringing in Prof. Masagi drain. Save it to gain more’ was the tag for interaction and future guidance on line adopted to highlight the problem the water conservation technique. The among farmers. The project imple- participants were convinced with the mented in the pulse growing belt of Gul- concept of Aakash Ganga and assured The SAHELI project barga was more than an eye-opener to to take it forward by implementing the The women empowerment project many farmers. concept in their farm next year on a has been continued and as planned larger scale. the project has been extended with The concept five villages. We at Cheminova India wanted to do our Cheminova also acknowledged Mr. Ay- Further information on this type of best to raise awareness among farmers yappa Masagi for his contribution to- project can be found on our website on water wastage and to demonstrate wards water conservation in Agriculture. www.cheminova.com. how water could be conserved to make

26 Corporate Social Responsibility Report 2012 Successful launch of a new banana project in Brazil

By using Cheminova’s low cost and simple precision technology it is possible to apply a few drops of a systemic fungicide to each banana plant and thereby reduce the environmental impact in sensitive areas.

New project in an environmentally sensitive area

Last years heavy flooding in the Vale do The project helps to solve an still need to be protected also in these Rebeira in the Sao Paulo State caused a environmental problem areas. set back for implementation of the plan- The primary objective of the project is ned banana project. In cooperation with to address an environmental problem in Aerial spraying by professional applica- the local banana farmers association cooperation with professional farmers tion companies is the preferred way to ABAVAR the project has been initiated many of which grow more than 20 hec- control the plant diseases yellow and in 2012 and is running well. Vale do Re- tares of banana. back sigatoka in the fields. The latter is beira has a very large production of ba- a devastating disease that in worst case nanas and it is situated in an area where The challenge for the farmers of this area can destroy a whole banana plantation. the authorities consider it very important is the following: Sprays from aeroplanes that agriculture and the natural environ- are not allowed near houses, roads and Cheminova provides an environmentally ment should coexist to the benefit of the environmentally sensitive areas near safe alternative future generations. rivers and streams. Yet the banana plants Cheminova’s simple hand held precision equipment is a tool suitable for application in areas where all other methods fail from an environmental point of view.

The project has the support of several local stakeholders including the largest aerial spray company whose management sees the need for an effective control method for sensitive areas. The project thus had a good start, and the plan is to further expand the activities in cooperation with local stakeholders for the benefit of the environment, the farmers and our business.

With a new technology, it is possible to protect banana plants close to streams.

Corporate Social Responsibility Report 2012 27 Banana projects in Brazil, continued

Progress with small scale farmers in the state of Goias In the village Bureti Allegre we assist a group of farmers with safe and effective control of banana disease with the same technology as mentioned above. The project has focus on safe and effective application of the fungicide flutriafol which is a method recommended by the local authorities. In terms of disease control the project works very well although weak organisational capacity among the local farmers calls for a stronger organisation to bring the project further forward.

Dialogue with ministry of Agriculture To further promote the project we have recently opened a dialogue with the Se- cretary of Agriculture of Goias State. The technical experts under the ministry have already endorsed the application method for flutriafol and it is now discussed how to further increase the farmers benefit from banana production. Several additional initiatives such as improving quality and establishing certification of origin as well as other activities to support local farming are being discussed. (Read more on the governmental website: www.se- agro.go.gov.br). Local dealers are engaged in the project with the new, simple technology.

28 Corporate Social Responsibility Report 2012 Production

We are constantly working The Cheminova group owns the following manufacturing plants on improving environment, Name Production Country Location health and safety at all pro- Chemical synthesis, formula- Cheminova A/S Denmark Rønland, Lemvig duction sites. tion and packaging Chemical synthesis, formula- Cheminova India Ltd. India Panoli north of Mumbai tion and packaging Stähler / Cheminova Formulation and packaging Germany Stade west of Hamborg Deutschland Data pertaining to environment, health San Colombano, Althaller Italia Formulation and packaging Italy and safety for these plants are shown in south of Milano the fact box on page 31. Approximately Headland United Formulation and packaging Deeside, North Wales one half of the activities measured as Agrochemicals Ltd. Kingdom production costs (COGS) for all - manu Cheminova MFG Pty. Formulation and packaging Australia Wyong north of Sydney facturing plants take place in Denmark, Ltd. approximately one third at the plant in India. All manufacturing plants are included in the statements for 2010, 2011 Reduced energy consumption and by means of our plant protection prod- and 2012. environmental improvements ucts, and furthermore help them make a The majority (97%) of the energy con- business out of their waste. Detailed information for the other sumption by Cheminova’s manufacturing companies, which are included in the plants is related to the sites in Denmark We are continuously working on improve- statement, may be found at www.che- and India, where active substances for ments within the areas of energy and minova.com, where the CSR accounting plant protection products are manufac- environment at the production plants. policy which has been used for the state- tured by chemical synthesis. These pro- It may be through reduction of various ments also can be found. cesses are highly energy demanding and emissions, reduction of energy consump- the major part of the steam and electrici- tion or improved recovery of chemicals The significant discharges of treated ty consumption is produced with natural as an alternative to incineration. waste water are from the manufacturing gas as energy source, the remaining part sites in Denmark and India, where the re- with other types of fuel, primarily oil. As an example, Cheminova India has in cipients are the North Sea and the Gulf of cooperation with the local environmen- Khambat, respectively. Late 2012 Cheminova India commission- tal authorities and other experts during ed a facility, where biofuel in the form 2012 designed, constructed and initiated An authorized disposal site for chemical of briquettes of compressed groundnut a facility for recovery of acetic acid in re- waste is situated at Cheminova’s manu- shells are used to partially replace natu- lation to the production of the insecticide facturing site at Rønland in Denmark. The ral gas in production of process steam. acephate. The aim of the project is reduc- disposal holds remnants of sulfur, sand This kind of CO2 neutral biomass has tion of a byproduct arising from neutrali- and concrete, which contain low con- several advantages. Besides being more zation of acetic acid with ammonia. The centrations of organophosphate chem- environmentally friendly due to reduced first experiments demonstrate a recovery icals and mercury. Cheminova has an emission of greenhouse gasses, the proof approximately 60-65% of the acetic agreement from 2010 with the Danish ject has a positive impact on the farmers’ acid, which has resulted in a significant Environmental Protection Agency about financial situation, since a new product reduction of both the byproduct and the removal of the disposal site over a certain has been created out of the waste from consumption of ammonia. period of time. The removal procedure groundnut production. This is entirely in was initiated in 2010 and is expected line with Cheminova’s slogan: ‘Helping REACH - EU’s chemicals regulation to be completed at the turn of the year you grow’, where we help farmers in- The registration of chemicals according 2013-14. crease the quality and yield of their crops to the EU chemical regulation REACH has

Corporate Social Responsibility Report 2012 29 Production, continued progressed far into stage 2, which is running until the middle of 2013. This stage Biomass used as alternative fuel in boilers includes chemicals, which the companies Mr. Pramod Dudhe produce or import in volumes of more Late Mr Pramod Dudhe was managing an in- than 100 metric tons per year. In 2012 novative Cheminova India project for the use Cheminova had special focus on regi- of groundnut shells as an alternative source of stration of flotation chemicals, which are energy. Mr. Dudhe passed away in 2013, his out- used in the mining industry for separation standing efforts for making this project a success of metals from the ore after crushing. are highly acknowledged. These flotation chemicals are produced at Cheminova’s plant in Denmark. Facts about biomass as a fuel Biomass briquettes may be used to substitute for Follow-up on targets for 2012 coal and natural gas in production of steam and In the following, the targets are stated electricity. with the degree to which they have been The briquettes are mostly made of green waste and various organic materials. The fulfilled. briquettes are easily transported. The use of biomass briquettes reduces the fuel costs, and reduces the emission of India greenhouse gasses. • The energy consumption for the pro- Cheminova’s project with biomass as an alternative fuel supports our tagline: “Che- duction of three large products to be minova – Helping you grow”. Our plant protection products improve quality and reduced by 3% per produced volume. yield of the farmers’ crops, and by encouraging the use of crop residues for energy Comments: The energy consumption production we provide an additional source of income. was reduced by 11.6% thus the target was achieved. sequently closed, and the certificates 2012. All in all 347 employees had been • The frequency and seriousness of inci- were renewed and thus the target was trained and 185 inspection rounds had dents and accidents at work to be re- achieved. been completed thus the target was duced by 5% • Certification of the company’s energy partially achieved. The programme is Comments: In 2012 there was no re- management system according to ISO continued with intensified focus on the portable accidents. The frequency rate 50001. values. of non reportable incidents was re- • The quantity of hazardous waste from duced by 40% and the seriousness Comments: The audit by the certification company was accomplished in production of a fungicide to be reduced rate by 10%. In this way the target was by half. achieved. September which resulted in 2 minor non conformances. One of these con- Comments: The quantity of waste was • Certification of the production at the cerning ISO 5001 and one concerning reduced by 60% and thus the target Intermediate Division to be certified in additional requirements from The Dan- was achieved. 2013 according to ISO 14001 and OH- ish Energy Agency. The first was subse- SAS 18001. • Energy consumption for the production quently closed while an energy report of an insecticide to be reduced by 8%. Comments: The work towards certifica- for the production site as required by Comments: It has not been technically tion has proceeded as planned, and the The Danish Energy Agency was not possible to reduce the energy con- certificates are expected to be received completed in time. Thus the target was sumption as expected. in 2013. partially achieved. Denmark • The programme SAFE for education Australia • Re-certification of the company’s envir- and training of employees in better atti- • The water consumption in production onmental management system accor- tudes and safer behaviour to be spread cleaning processes to be minimized as ding to ISO 14001 and OHSAS 18001. to the organisation during 2012-13. part of the plant’s water saving pro- Comments: The audit of the certifi- Comments: It was our intention that at gramme. cation company was accomplished least 640 employees should be train- Comments: Tests have shown that the in September. The audit resulted in 4 ed and at least 160 inspection rounds water saving programme can be ac- minor discrepancies. These were sub- should be completed at the end of complished but examinations of the

30 Corporate Social Responsibility Report 2012 GMP (Good Manufacturing Practice) Fact box: Environment, health and safety requirements are still outstanding thus the target was partially achieved. These Unit Note 2012 2011 2010 examinations will be accomplished in Water consumption: Cooling Million m3 29 31 34 2013. Processes and Thousand m3 1 659 682 821 • It will be ensured that external con- ord. consumption tractors work in accordance with our Energy consumption: Natural gas GWh 2 311 337 386 demands on health, safety and envir- LPG MWh 3 0.048 0 0 onment. Electricity GWh 4 70.6 67.2 76.9 Comments: In 2012, all servicemen Fuel oil GWh 1.8 2.7 1.8 received safety instructions. 86% ac- Materials: Raw mat. consump. 1000 tonnes 108 103 116 cepted the demands. The remaining Discharge of waste COD Tonnes 5 148 206 289 14% are expected to accept during the water: Nitrogen Tonnes 6 22 31 16 1st quarter of 2013. No servicemen are Phosphorus Tonnes 7 9 9 allowed to enter the production area Air emissions: Particles Tonnes 7 5.7 4.5 5.2 without having accepted the condi- CO 1000 Tonnes 8 63 71 79 tions in the safety instructions. 2 Ordinary waste: Recycling 1000 Tonnes 3.0 3.7 3.3 Comments on the development from Incineration 1000 Tonnes 9 0.26 0.47 0.47 2011 to 2012 Depositing 1000 Tonnes 17.9 15.8 21.1 After a fall in production, measured on Tonnes the consumption of raw material, of 12% Hazardous waste: Recycling 10 1,760 580 145 from 2010 to 2011 the production has Incineration 1000 Tonnes 10+11 12.3 7.6 6,8 increased by 5% from 2011 to 2012. In Depositing 1000 Tonnes 12 4.9 2.28 2.39 most of the group companies there have Spillage and waste: Number 13 10 19 70 been larger changes in quantity and se- Accidents: Number 18 20 34 lection of products from 2011 to 2012. Accident frequency: - 3.3 4.0 8.8 This has resulted in significant changes in Absence from work due to accidents: - 0.2 1.0 3.6 several parameters.

Note 1: In India, the consumption of water has reduced by one third. Note 10: In Germany, the quantities for water for processes has increased as a re- recycling and incineration previously sult of larger production of two products Note 6: Nitrogen primarily comes from have been split according to a qualified while the consumption in Denmark has the waste-water treatment plant in Den- estimate. Now the amounts are meas- decreased. mark. After an unusally high value in ured and the amount going into recycling 2011, the level is normal again. has increased by a factor 6.5. Note 2: The increased production in Den- mark has primarily been formulation and Note 7: In Denmark, the production Note 11: In India, the quantity has in- here there is no consumption of natural which caused the particle emission, is creased significantly because a waste gas. closed. However, in all years, primarily water stream from a new production is the activities in India have contributed. incinerated. Note 3: Australia is now using LPG (Li- quified Petroleum Gas consisting of pro- Note 8: The CO2 emission has been re- Note 12: In India the quantity is doubled pane and butane). Therefore, LPG has duced significantly, among others be- due to a major cleaning of an effluent become a new parameter. cause a waste-water stream in Denmark treatment plant. is no longer incinerated. The production Note 4: The increase is primarily due to has been stopped. Note 13: No companies have increased changed activities in India. the number of spillages – most have re- Note 9: In Denmark, a production which duced the number of spillages. Note 5: The change primarily comes from significantly contributed to the quantities Denmark where the COD in the waste is closed.

Corporate Social Responsibility Report 2012 31 Human Resources

Based on Cheminova’s mission, vision and values a global HR strategy is being implemented.

The values are alive in the organisation conduct to achieve a correlation be- nova’s overall strategic business objec- One of the goals in 2012 was more focus tween day-to-day work and the company tives and consolidate the overall frame- on our business values in Cheminova glob- values. Where considered necessary, ac- work, policies, procedures and tools ally. Our values are to be known, under- tion plans for improvements of the future across frontiers. The strategy runs until stood and lived in all parts of the orga- conduct were agreed upon. the end of 2016, and its three focus areas nisation. They are an important element are: attraction, development and reten- in achieving Cheminova’s overall strategic In the Danish part of the organisation tion. objectives. The values are to be an equal spot inquiries have been sent to random part of the company culture and every- employees during the year asking if our The strategy outlines the HR activities day life to our mission and vision. values are part of their everyday working to be given special focus in each of the life. The results show a satisfactory level years. To meet the strategy the building As part of ensuring the implementation, of knowledge of our values. of a Global HR organisation has been ini- a story-telling booklet - of how the values tiated, including the employment of spe- being part of the everyday life - was com- In Australia, the values were used as tool cialists in the individual focus areas and posed. Our various sites and departments for social fund raising. Here we have also a HR Community consisting of the head contributed with articles about situations honoured seven employees/teams for of Global HR and one representative for of how we achieve ambitious goals, are actively demonstrating our values in their each region and Denmark. The specialists innovative, decide and act, recognize re- work. This activity is itself meeting one of are to create the framework for the HR sults and are good corporate citizens. It our values, i.e. recognizing results. activities to achieve the overall business is important, that all employees had the objectives, and the Community members optimal benefit of reading the booklet, Cheminova’s five values are not to be con- are to implement these activities in their therefore it was published in English, Da- sidered a completed project. In the futu- regions respectively. nish, German, Spanish, Portuguese and re, we shall launch various events refre- Russian and distributed to all employees. shing all employees’ memories as to why In 2013 the global focus will be on ap- we have the values and how we may con- praisals, organisation alignment, job clas- To illustrate the link between the every- tinuously improve ourselves in accord- sification and strategic recruitment. day business and the values, meetings ance with our values. have been held in various parts of the Additional internal HR activities in 2012 organisation. It was discussed how the Global HR strategy In 2012 we have established global pro- individual sites/ departments meet the In 2012 an ambitious global HR strategy cedures for the introduction of new values and how to possibly adjust their has been decided. It will support Chemi- employees to ensure that employees are

32 Corporate Social Responsibility Report 2012 The employees in São Paolo in Brazil gathered for a value meeting where the value booklet was used for discussion. well received and have a well-structured External HR activities in 2012 the company being an attractive place to programme for their initial period with Cheminova has in 2012 participated in work for our current and future employ- Cheminova. Basically, the program is de- job fairs and given a number of company ees. veloped by the employee’s immediate presentations at universities and busi- manager. It is, however, mandatory that ness schools. We offer education and Our social responsibility is reflected in all new employees are introduced to our are external examiners at high-level edu- the following activities in Denmark: values and Code of Business Principles, cation centres and hold committee and Cheminova assists ’maladapted’ young either by written material or information board positions at technical schools, aca- persons by offering them placements and meetings for new employees, which are demies, business schools and universities subsequently often a job opportunity. We held in various parts of our organisation. in order to contribute to the education of employ persons from the surrounding the future workforce. In India we instruct communities in flexible jobs and do job Equally, we have in 2012 established a and support children in primary schools testing for physically or mentally disabled procedure where resigned employees and contribute professionally to higher persons. We are cooperating with the are asked for input in order to improve educational institutes to prepare the stu- local job centres to assist long-term un- the conditions for the remaining and fu- dents for the worklife. Additionally, Che- employees in getting back to the worklife. ture employees. minova India has presented an Award to the best university student to promote In 2012 twelve trainees have participated Nationally, various development and the research within agriculture. in a 13-week program with tasks on equal training programmes and seminars, in- terms with our permanent employees. It dividually or in teams, have been com- Cheminova is also open for visitors. In is our intention to proceed with such acti- pleted. The courses have covered fi- Denmark, e.g., we have had more than vities in the future and consequently find nance and accounts, languages, project 2,000 visitors; hereof inspiration visits for it appropriate that we have joined Code management and personal development 125 primary school pupils, 102 upper se- of Care, which is a Danish non-profit or- etc. For instance in Brazil, special focus condary school pupils and numerous uni- ganisation aiming at increasing social re- has been given to educating managers in versity and business academy students. sponsibility. various management principles, especially creating a joint culture and adapting to Social responsibility Update of the anti-corruption policy the company values. Cheminova being a large place of em- Inspired by the British anti-corruption ployment in the local community has a policy, the Bribery Act 2010, Cheminovas long-standing tradition of claiming so- anti-corruption policy has been updated cial responsibility, which contributes to concerning facilitation payment.

Corporate Social Responsibility Report 2012 33 Human Resources, continued

In 2012 anti-corruption has been discussed by the management of the Russian organisation along the same lines as done earlier in other parts of the organisation.

Whistleblower function As part of our Code of Business Principles, Cheminova established a global Whistle- blower function at the beginning of 2011.

We do not consider our Whistleblower function as a telltale system only but a system which secures that we can maintain a good reputation and reliability towards all our stakeholders.

Our internal Whistleblower committee consists of the heads of Corporate Communication, Global Human Resour- ces and Safety, Health, Environment & Quality Management. In Australia, seven employees/teams have been honoured for actively demonstrating our values in their work. Here, certificates are handed over. Our assessment is that our Whistle-blower function is well-functioning and confi- dence-inspiring. In 2012 we received six reports, which all have been treated professionally and closed with a reply to the blower.

For the time being we are working on en- gaging a new and impartial external col- laborator, who has a 24-hour hotline and is able to respond to potential inquiries in several languages.

In India, we give instruction and support to children in the primary school and professional input to high schools.

34 Corporate Social Responsibility Report 2012 Strategy and action plan

Corporate Social Responsibility Report 2012 35 CSR strategy

Helping you Grow – Chemistry with Care

1. Introduction For CSR strategy considerations, we have and used with care. It is our goal to con- Cheminova’s systematic CSR work has focused on the following from the above tinuously improve our products so that been going on since 2006. Every year foundation: UN’s Millennium Develop- side effects are reduced. Further we will goals have been set for the coming year’s ment Goal: Eradicate extreme poverty continue to improve conditions on safety, work, and the focal point for communica- and hunger. health and environment at our production has been the annual CSR report, is- tion sites and in general we will support sued as a separate part of the Auriga an- Cheminova’s mission that care is exercised in the life cycle from nual reporting. The first CSR report was We help improve quality of life for the production to application. issued for the year 2006. world’s population by supplying products that help farmers increase yields and Our main objective in the future CSR ef- The work has continually evolved, initially quality of crops to satisfy the global de- forts can with the above background in around phase-out of Class I products and mand for food, feed, fibre and energy. mind be expressed by the following slo- subsequently village projects in India. gan: Based on our experiences from the first Cheminova’s value years’ CSR work we decided in 2012 to We are good corporate citizens. Helping you Grow – Chemistry with Care establish a more long-term strategy for the CSR activities for the coming years. By helping farmers around the world 3. CSR committee to produce more and better food Che- Cheminova’s CSR Committee has the With input from several sides including minova contributes to alleviate hunger operational responsibility that the CSR our auditor on CSR, PwC, the present and poverty in the world. We do this by strategy is followed. strategy was developed. producing and selling plant protection products. These are biologically active The CSR Committee refers to Chemino- 2. CSR strategy (Main Objective) substances designed to have special prop- va’s Global Executive Committee (GEC). The foundation of our CSR work is based erties for controlling harmful insects, on legislation as well as globally recog- harmful fungi and weeds in the farmer’s The CSR Committee consists of VP Safety, nized norms and standards for our indu- fields. The products may have unwanted Health, Environment & Quality (Chair- stry and Cheminova’s business principles, side effects if not produced, handled man), Manager Safety & Health (Secreta- as outlined below: ry), Senior VP Production & Logistics, VP Human Resources, VP Portfolio Manage- Globale standards Industry standards Our business principles ment and VP Corporate Communication. • UN Global Compact • Responsible Care • Cheminova’s mission, • UN’s Millennium Develop- • FAO Code of Conduct on vision and values 4. Key focus areas ment Goals the Distribution and Use • Cheminova’s Code of Busi- Based on our main objective ’Helping you • Global Reporting Initiative of Pesticides ness Principles Grow - Chemistry with Care’, we have de- (GRI) • Code of Conduct for fined the following main areas. We will: suppliers

36 Corporate Social Responsibility Report 2012 • Help to increase food supplies through The long-term goals are supported by 7. Reporting of CSR our product range. specific targets in the following areas: CSR is an important part of Cheminova’s • Reduce exposure to chemical products. • Development of new formulations. corporate identity and is communicated as such both internally and externally. • Use fewer resources to manufacture • Product stewardship. The cornerstone of this communication our products. • Demonstration projects in selected is our annual CSR report which is at GRI • Contribute to CSR through our HR strat- local areas. level B and is including reporting accord- egy. • Attraction, development and retention ing to UN Global Compact. The report is • Continuously engage in demonstration of employees. published together with Auriga’s annual projects under the heading ’Helping • Continuous improvement of our pro- report. In addition CSR activities are high- you grow’. duction facilities. lighted in quarterly reports from Auriga as well as on our web page throughout • Active supplier management. 5. Target setting the year. The internal communication is Long-term goals will be set on the basis used to raise the awareness of our CSR of: 6. Implementation activities in the global organization. • An index that illustrates the area of Setting targets is done by the CSR Com- farmland where agricultural crops and mittee through ongoing contact with 8. Revision of the strategy thus food production is protected by representatives across the entire orga- The present strategy is on the agenda of Cheminova’s plant protection prod- nisation (headquarters, regions and pro- the CSR Committee once a year in Q2, ucts. duction sites), and external stakeholders. where proposals for revision are discussed and subsequently presented to GEC • An index illustrating the quantity of Once goals are set, KPIs for each goal are for final approval. chemicals in Cheminova’s plant protec- prepared. The specific tasks are defined tion products used per area protected. and progress is ensured by individuals The overall CSR strategy is up for a • An index illustrating selected key re- being appointed by the CSR committee thorough general review by the manage- sources used by Cheminova in the to assume responsibility for compliance ment every 3-5 years. manufacturing of plant protection and follow up on specific targets. products. • The targets are presented to the GEC for final approval. Note: The indices are calculated relative- ly to reflect trends. It is the responsibility of the CSR Commit- tee to draw up reporting systems to en- In relation to the development of these sure quarterly monitoring of CSR acti- key indicators, it is important that they vities so that the work can be followed are based on validated data so that they through the year. can be documented, are reliable and can be recognized by our stakeholders.

Corporate Social Responsibility Report 2012 37 Action plan

Village projects Focus area Target/activity Timetable Success criteria India Intensification of the “Aakash Ganga” water conservation 2013 Further 25 acres included in the project project

Continuation of the project “Saheli” on women empower- 2013 Support on establishing self-help groups which ment on safety, health and livelihood based on local skills and education will be help- ed to improve their economy Impact assessment of village projects to be expanded with 2013 Two of the model villages to be covered by two project villages Impact Assessment Study. Exit plan for model villages Brazil: Develop- The project among small-scale banana farmers in the state 2013 - 14 The project keeps momentum, and dialog with ment of village of Goias will be continued and the dialogue with the Min- the Ministry of Agriculture is continued community based istry of Agriculture to be continued on environmentally friendly The project with focus on safe and environmentally friend- 2013 - 14 The project keeps momentum and involves an control of banana ly control of plant diseases among banana farmers in the increasing number of farmers diseases state of São Paulo will be continued

Helping you Grow – Chemistry with Care Focus area Target/activity Timetable Success criteria Chemistry with Target: More plant protection 2013 -14 In the CSR report for 2013 reporting will be Care Activity: An index illustrating the area of farm land where done based on a selected reference period. the crops and thus the food production is protected by From 1st quarter 2014 and onwards reporting Cheminova’s products will be implemented will be quarterly Target: Less chemistry 2013-14 In the CSR report for 2013 reporting will be Activity: An index illustrating the quantity of xenobioticts done based on a selected reference period. (not naturally occuring chemicals) applied in Chemino- From 1st quarter 2014 and onwards reporting vas plant protection products per area unit will be imple- will be quarterly mented Target: Less resources 2013-14 In the CSR report for 2013 reporting will be Activity: An index illustrating the consumption of fossil fuel done based on a selected reference period. for manufacturing products at Cheminova’s production From 1st quarter 2014 and onwards reporting sites in India and Denmark will be implemented will be quarterly Development of at least 20 formulations with a low content 2012-14 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

Product stewardship Focus area Target/activity Timetable Success criteria India Target: Dispose empty containers in a safe and environ- 2013 Continued participation in the project being mentally friendly manner run in village Anantvarapadu

Production Focus area Target/activity Timetable Success criteria India Energy consumption for the production of two large prod- 2013 Total energy consumption for production of the ucts to be reduced by 2% per produced volume products reduced by at least 2% per produced volume compared to 2012 Reduction of the COD content in the waste water by 3% 2013 COD content in the treated waste water reduced by at least 3% compared to 2012 Frequency and seriousness of non reportable incidents at 2013 For incidents at work (i.e. incidents without work to be reduced by 2% absenteeism after 48 hours) frequency and absenteeism have been reduced by 2% compared to 2012 The production at the Intermediate Division to be certified 2013 Certification company has forwarded confirma- according to ISO 14001 and OHSAS 18001 tion of certification

38 Corporate Social Responsibility Report 2012 Focus area Target/activity Timetable Success criteria Denmark Revision of the operation of the biological waste water 2012-15 Reduction of the consumption of resources for treatment plant where the waste water from the individual treatment of waste water from the individual production plants is treated/optimized so that the poten- production plants under continuous adherence tial of the plant is utilised in the best possible way to the discharge requirements to the biological treatment plant Target: To reduce the quantity of waste per produced unit 2012-14 Goal achievement is assessed on basis of the and Cheminova’s total costs for treatment of hazardous production in 2011. New productions and waste by 5 and 10% respectively per year in 3 years subsequent generation of waste will not be in- Activity: Examine waste flows to find out whether they can cluded in the calculation of goal achievement be divided more appropriate as regards characteristics and classification plus reassessment of demands for treatment Australia Achieve an OHSAS 18001 certificate on occupational health 2014 Certification company has forwarded confirma- and safety management tion of certification Target: Improve waste-water treatment. Ensure compli- 2013 Submission to Council of appropriately struc- ance to trade waste water license tured approval Activity: 1) Apply for an increase in magnitude in discharge consent criteria 2) Understand current performance limitations and measurement criteria 3) Maximise performance of process and examine further treatment options United Kingdom Target: Reassessment of environmental and safety perfor- 2013 Applications approved and the safety level of mance to meet the high standard the site accepted by the competent authorities Activity: Application of a Hazardous Substance Consent and a new be-spoke environmental permit plus submitting a COMAH report to the competent authorities Germany Target: Reducing the emission of dust from a production 2013 The concentration of dust emitted is below 2 plant mg/m3 Activity: Installation and commissioning of a new dust filter

Supplier management Focus area Target/activity Timetable Success criteria Supplier audit Target: Ensure high quality of supplier audit with focus on 2013 Accomplished training of Supply Chain staff, CSR related issues technical responsible persons in the regions Activity: Education and training of supplier auditors world- and other relevant employees wide

Human Resources Focus area Target/activity Timetable Success criteria Attraction A global policy and procedure describing how Cheminova 2013 A global policy to be issued and procedure for can attract the best match for each vacant and/or new po- strategic recruitment to be initiated sitions is to be established Development Completion of yearly appraisals for all employees globally. 2013-14 All employees have participated in minimum In addition, we shall develop a new appraisal set-up which one appraisal in 2013 will be linked to the company's KPIs and values. Retention To establish visible and successful career paths globally, 2013 All management and key positions to be evalu- and title and benefit structure is aligned according to roles ated and job classified. Roles and responsibi- and responsibilities of the specific positions. lities are to be defined for each position. Glo- bal policy for career paths to be issued and communicated throughout the entire organisation Anti-corruption Mapping from which a classification of country based cor- 2013-14 GEC approval of mapping. Educational activities ruption risks can be made. for selected employees has been undertaken Educational activity for selected employees Denmark Target: To improve job satisfaction and innovation, and also 2013 By the end of 2013 all employees has been to reduce mistakes and unintended incidents educated and involved in the SAFE programme Activity: Starting from Cheminova’s values employees are educated and trained in understanding colleagues’ job functions, interactions ion the organisation and care in time

Corporate Social Responsibility Report 2012 39 More information

40 Corporate Social Responsibility Report 2012 Management statement

Kurt Pedersen Kaalund Anton Bro Rico T. Christensen Jaime Gomez-Arnau President & CEO Senior Vice President, President, President, Development & Registration Region North America Region Europe

Niels Morten Hjort Jesper Barslund Jacobsen Pramod N. Karlekar Berit Nørskou Pedersen Senior Vice President, Senior Vice President, President, Vice President, Production & Logistics Finance & Support Region International Human Resources

On March 1, 2013, the company’s day-to-day management, the Global Executive Committee (GEC), considered and approved the CSR Report for 2012.

Cheminova’s CSR work is founded on FN’s Global Compact and GRI (Global Reporting Initiative) which are internationally approved codes together with Responsible Care which is the chemical industry’s own code. Internally, The CSR work is rooted in Cheminova’s Code of Business Principles and the CSR Strategy as well as policies and procedures in our Global QC and CSR Manual. Cesar Rojas Jens Thorsen GEC has the overall responsibility for Cheminova’s global busi- President, Vice President, ness and activities, including CSR. Region Latin America Portfolio Management

It is the GEC’s view that the CSR Report for 2012 provides an accurate picture of the company’s CSR activities in the areas described.

Corporate Social Responsibility Report 2012 41 Assurance statement

Independent Assurance Statement for Our responsibility is, on the basis of our The criteria stated concerning statement Cheminova A/S’s stakeholders work, to express a conclusion on the in- of environmental and occupational health We have assessed Cheminova A/S’s 2012 formation contained in the CSR Report and safety data, as described in the ac- CSR Report for the purpose of expres- regarding target attainment and non- counting policies, have primarily been as- sing a conclusion on the descriptions of financial data as well as on the Report as sessed from inquiries concerning proce- target attainment and non-financial data a COP Report. dures for calculation and measurement contained in the Report as well as its ca- of the concrete data. Furthermore, we pacity as Communication on Progress Scope of our work have performed technical accounting Report (COP Report) occasioned by Che- We planned and performed our work in ac- analyses of reported data and have re- minova A/S’s signature to the UN Global cordance with the International Audit-ing viewed selected documentation. Compact. Standard ISAE 3000 (assurance engage- ments other than audits or review of hi- We have reviewed the Report with a view Criteria applied storical financial information) for the pur- to assessing its informative value in re- The criteria for CSR-related target attain- pose of obtaining moderate assurance lation to expectations for a COP Report. ment are stated in the 2011 CSR Report, that Through interviews with Management in which targets as well as success crite- • the status of attainment of established and selected key employees, we have ria for the focus areas Village Projects, CSR targets for 2012 on page 5 is in ac- gained insight into Management’s com- ‘Helping you Grow – Chemistry with Care’ cordance with the listed criteria for CSR mitment and status of embedding of the Production, REACH – new EU’s chemicals targets, which were published in the UN Global Compact and Cheminova A/S’s regulation, Supplier Management and 2011 CSR Report; values with relating specific activities. Human Resources, are presented. • the environmental and occupational As agreed with Cheminova A/S Manage- health and safety data stated on page The criteria for preparation of non-fi- ment, we have not performed any proce- 31 have been recognised in accordance nancial data contained in the CSR Report dures relating to the reliability of the GRI with the criteria stated for preparation are evident from the accounting policies reporting for 2012. of the non-financial data of the CSR Re- described on our website: http://www. port; cheminova.com/en/sustainability/data_ Conclusion and_summaries/csr_accounting_princip- • the CSR Report in its entirety is consist- Based on our review, nothing has come les.htm. These contain information con- ent with the Company’s CSR activities to our attention that causes us to believe cerning which of the Group’s businesses and progress with a view to supporting that the descriptions covering the status and activities are included in the types of the UN Global Compact. of the attainment of CSR targets for 2012 data reported as well as Management’s on page 5 are not accurate. reasons for selecting environmental and The assurance obtained is limited as com- occupational health and safety data. pared to that of an audit. Our work has Furthermore, nothing has come to our at- therefore, based on an assessment of tention that causes us to believe that the Responsibilities materiality and risk, primarily included environmental and occupational health Cheminova A/S Management is respon- inquiries concerning goal attainment, in- and safety data stated on page 31 have sible for preparing the CSR Report, including on a judgemental sample-basis not been recognised in accordance with cluding for setting up registration and obtaining documented confirmations the criteria stated for preparation of the internal control systems with a view to regarding goal attainment from local non-financial data of the CSR Report. ensuring reliable reporting. Company managements, interviews with selected Management is furthermore responsible key managerial employees responsible We confirm that the CSR Report serve as for specifying acceptable reporting cri- for the goal attainment and review of se- Cheminova A/S’s COP Report, and based teria as well as selecting data to be collected documentation. on the total work performed, nothing has lected. come to our attention that causes us to Moreover, our review of local targets believe that the CSR Report in its entirety Moreover, Cheminova A/S Management and data has included visits to the pro- is not based on specific activities and thus is responsible for preparing a COP Report duction companies in India, England and Cheminova A/S’s progress with a view to presenting Cheminova A/S’s progress Denmark, and we paid visit to the sales supporting the UN Global Compact. in respect of supporting the UN Global company in India. Compact principles.

Copenhagen, March 15, 2013 PricewaterhouseCoopers Birgitte Mogensen Jens Pultz Pedersen Statsautoriseret Revisionspartnerselskab State Authorised Public Accountant MSc (Engineering), Diploma (Business Economics)

42 Corporate Social Responsibility Report 2012 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 pe- lization more socially and ecologically riod under review. Information on the compatible and to raise standards in the Global Compact can be found at www. fields of human rights, labour rights and unglobalcompact.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 2012 Achievements 2012 Human Rights: Principle 1: Support of human rights Principle 2: Exclusion of human rights violations • Code of Business Principles (p. 49) • In 2012, the knowledge of the company’s mission, vision and • Executed (p. 6) • Supplier Code of Conduct (p. 49) values among all employees of the group will be spread and maintained • Management approach to • Executed (p. 6) CSR management (p. 49) • In 2012, a global HR strategy will be prepared in order to ensure increased and more structured focus on Human Resources in the • Executed (p. 5) total group • The project ”Saheli” on women empowerment on safety, health and livelihood in India will be continued in 2012 and extended with further 5 villages

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. 49) • In 2012, the knowledge of the company’s mission, vision and • Executed (p. 6) • Supplier Code of Conduct (p. 49) values among the employees of the group will be spread and maintained • Management approach to • Executed (p. 6) CSR management (p. 49) • In 2012, a global HR strategy will be prepared in order to ensure increased and more structured focus on Human Resources in the • Executed (p. 6) • UN Code of Conduct (p. 49) total group • Production at the Intermediate Division in India will in the period 2012-13 be certified in relation to OHSAS 18001

Corporate Social Responsibility Report 2012 43 Systems Measures 2012 Achievements 2012 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. 49) • In India, the project ”AAkash Ganga” on water conservation will • Executed (p. 5) • Responsible Care (p. 49) be continued in 2012 and extended with further 25 acres • Supplier Code of Conduct (p. 49) • The project among small-scale banana farmers in the state of • Executed (p. 5) Goias in Brazil will be continued in 2012 • Management approach to CSR management (p. 49) • A new project on community development and safe and en- • Implementation plan vironmentally friendly control of plant diseases will be launched is followed (p. 5) • UN Code of Conduct (p. 49) among small-scale banana farmers in the state of São Paulo in Brazil in 2012 • 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 3 large products • Executed (p. 5) in India will in 2012 be reduced by 3% per produced volume • The quantity of hazardous waste from the production of a fungi- • Executed (p. 6) cide in Denmark will be halved • In the period 2012-14 at least 20 formulations with low content • Executed (p. 5) of volatile organic solvents will be developed

Anti-Corruption: Principle 10: Measures to fight corruption • Code of Business principles (s. 49) • Anti corruption policy updated • Executed (p. 33) • Management approach to CSR management (p. 49) • Dialogue with subsidiaries • Executed (p. 34)

General CSR Issue • Code of Business principles (s. 49) • The already initiated projects in the nine selected villages in In- • Plan followed (p. 5) • Responsible Care (p. 49) dia will be continued in 2012 and 2013 • UN Code of Conduct (p. 49) • Impact assessments and implementation of specific improve- • Plan followed (p. 25) ments identified will be undertaken in two villages in India

44 Corporate Social Responsibility Report 2012 GRI reporting 2012

The page numbers refer to the relevant sections of this report, and AR refers to page numbers in Auriga’s Annual Report 2012.

F = Fully reported; P = Partly 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/about_us/aurigaindu- F 3 and 41 Committee stries_annualreport2012_uk.pdf - AR 2012 p. 3 1.2 Description of essential impacts, risks and opportunities http://www.cheminova.com/download/about_us/aurigaindu- F 12 and 14 stries_annualreport2012_uk.pdf - AR 2012 p. 17 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 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/organisation.htm 2.4 Location of organization’s headquarters - F 52

2.5 Number of countries where the organization operates, and na- http://www.cheminova.com/en/about_us/management_and_ F - mes of countries with either major operations or that are speci- structure/organisation.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/organisation.htm 2.7 Markets served http://www.cheminova.com/download/about_us/aurigaindu- F 10 stries_annualreport2012_uk.pdf - AR 2012 p. 10 and 12 http://files.shareholder.com/downloads/ABEA-4AAEQR/2284 666904x0x594485/51bf6c6e-4fe0-449b-bfc6-2e965cc790d8/ Corporateprofile_OurMarket_UK.pdf 2.8 Scale of the reporting organization http://www.cheminova.com/download/about_us/aurigaindu- F - stries_annualreport2012_uk.pdf - AR 2012 p. 5 and notes p. 37-64 2.9 Significant changes during the reporting period regarding size, http://www.cheminova.com/download/about_us/aurigaindu- F 4 structure, or ownership stries_annualreport2012_uk.pdf - AR 2012 p. 6 2.10 Awards received in the reporting period - F 10 and 16 3. Report parameters Aspect: Report profile 3.1 Reporting period for information provided http://www.cheminova.com/en/sustainability/data_and_sum- F 4 maries/csr_accounting_principles.htm 3.2 Date of most recent previous report March 14, 2012 F - 3.3 Reporting cycle http://www.cheminova.com/en/sustainability/data_and_sum- F - maries/csr_accounting_principles.htm 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 29

3.7 Limitations on the scope or boundary of the report. - F 4 and 29 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, n.a. F - outsourced operations, and other entities that can significantly affect comparability from period to period and/or between- or ganizations

Corporate Social Responsibility Report 2012 45 GRI reporting 2012, continued

Information about the company Links and comments Page 3.9 Data measurement techniques and the bases of calculations, in- http://www.cheminova.com/en/sustainability/csr_policy/man- F - cluding assumptions and techniques underlying estimations ap- agement_approach_to_csr_management.htm plied to the compilation of the indicators and other information http://www.cheminova.com/en/sustainability/data_and_sum- in the report maries/csr_accounting_principles.htm 3.10 Explanation of the effect of any re-statements of information pro- n.a. F - vided in earlier reports, and the reasons for such re-statement 3.11 Significant changes from previous reporting periods in the scope, n.a. F - boundary, or measurement methods applied in the report 3.12 Table identifying the location of the Standard Disclosures in the - F 45 report 3.13 Verification - F 41 and 42 4. Governance, commitments and engagement Aspect: Governance 4.1 Governance structure of the organization, including committees http://www.cheminova.com/en/about_us/management_and_ F 41 under the highest governance body responsible for specific tasks, structure/ 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/ http://www.cheminova.com/en/about_us/management_and_ structure/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/ dependent and/or non-executive members 4.4 Mechanisms for shareholders and employees to provide recom- - F 21 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/governance/report_ ing social and environmental performance) on_corporate_governance.htm 4.6 Processes in place for the highest governance body to ensure con- http://www.cheminova.com/en/about_us/governance/report_ F - flicts of interest are avoided on_corporate_governance.htm 4.7 Process for determining the qualifications and expertise of the http://www.cheminova.com/en/about_us/governance/report_ F - members of the highest governance body for guiding the organ- on_corporate_governance.htm isation’s strategy on economic, environmental, and social topics 4.8 Internally developed statements of vision, values, principles etc. http://www.cheminova.com/en/about_us/understanding_ F 32 and 33 and their implementation cheminova/ http://www.cheminova.com/en/sustainability/csr_policy/ code_of_business_principles.htm http://www.cheminova.com/en/sustainability/csr_policy/sup- plier_code_of_conduct.htm 4.9 Procedures of the Board for overseeing the organisation’s eco- http://www.cheminova.com/en/about_us/governance/report_ F - nomic, environmental and social management and performance on_corporate_governance.htm http://www.cheminova.com/download/about_us/aurigaindus- tries_annualreport2012_uk.pdf - AR 2012 p. 20 4.10 Processes for evaluating the Boards own performance http://www.cheminova.com/en/about_us/governance/report_ F - on_corporate_governance.htm http://www.cheminova.com/download/about_us/aurigaindus- tries_annualreport2012_uk.pdf - AR 2012 p. 20 Aspect: Commitments to external initiatives 4.11 Explanation of whether and how the precautionary approach or - F 3, 10, 12, 18 principle is addressed by the organisation and 23 4.12 Externally developed economic, environmental, and social char- - F 4, 43 and 49 ters, principles, or other initiatives to which the organisation sub- scribes or endorses 4.13 Memberships in associations - F 9 and 49 Aspect: Stakeholder engagement 4.14 List of stakeholder groups engaged by the organizations - F 21 4.15 Basis for identification and selection of stakeholders with whom - F 4 and 21 to engage

46 Corporate Social Responsibility Report 2012 Information about the company Links and comments Page 4.16 Approaches to stakeholder engagement, including frequency of There is a current and open dialogue with our stakeholders F 21 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 12 and 14 er engagement, and how the organisation has responded 096249DAD5B2/0/Cheminova_VVM_udvidelse.pdf 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/governance/report_ F - on_corporate_governance.htm http://www.cheminova.com/download/about_us/aurigaindu- stries_annualreport2012_uk.pdf Aspect: Economic performance EC1 Direct economic value generated and distributed, including rev- http://www.cheminova.com/download/about_us/aurigain- F - enues, operating costs, employee compensation, donations and dustries_annualreport2012_uk.pdf - AR 2012 p. 5 and notes p. other community investments, retained earnings, and payments 37-64 to capital providers and governments EC3 Coverage of the organization’s defined benefit plan obligations http://www.cheminova.com/download/about_us/aurigaindus- F - tries_annualreport2012_uk.pdf - AR 2012 p. 54-55 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- katorer_hr_omraadetuk.pdf tion Environment Management approach http://www.cheminova.com/en/sustainability/csr_policy/man- F - agement_approach_to_csr_management.htm Aspect: Materials EN1 Materials used by weight or volume - F 31 Aspect: Energy EN3 Direct energy consumption by primary energy source Natural gas 311 GWh corresponding to 1120 TJ (Terra joule) F 31 LPG 0.048 MWh corresponding to 0.17 GJ (Giga joule) Fuel oil 1.8 GWh corresponding to 6.5 TJ EN4 Indirect energy consumption by primary source Elektricity 70.6 GWh corresponding to 254.2 TJ F 31 Aspect: Water EN8 Total water withdrawal by source - F 31 Aspect: Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent http://www.cheminova.com/en/about_us/news_views/pro- F - to, protected areas and areas of high biodiversity value outside duction_sites_and_natural_resorts.htm protected areas http://www.cheminova.com/en/about_us/news_views/biodiversity.htm EN12 Description of significant impacts of activities, products, and- ser http://www.cheminova.com/en/about_us/news_views/pro- F - vices on biodiversity in protected areas and areas of high biodi- duction_sites_and_natural_resorts.htm versity value outside protected areas http://www.cheminova.com/en/about_us/news_views/biodiversity.htm Aspect: Emissions, effluents and waster EN16 Total direct and indirect greenhouse gas emissions by weight http://www.cheminova.com/en/sustainability/data_and_sum- F 31 maries/csr_accounting_principles.htm EN21 Total water discharge by quality and destination - F 31 EN22 Total weight of waste by type and disposal method - F 31 EN23 Total number and volume of significant spills - P 31

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 and 12 vices, and extent of impact mitigation and_health.htm

Corporate Social Responsibility Report 2012 47 GRI reporting 2012, continued

Indicators of company’s CSR Links Page Labour practices and decent work Management approach http://www.cheminova.com/en/sustainability/csr_policy/man- F 21 agement_approach_to_csr_management.htm Aspect:Occupational health and safety LA7 Rates of injury, occupational diseases, lost days, and absentee- Only for manufacturing companies D 31 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 grammes in place to assist workforce members, their families, or katorer_hr_omraadetuk.pdf community members regarding serious diseases Human Rights Management approach http://www.cheminova.com/en/sustainability/csr_policy/man- F 34 and 49 agement_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 katorer_hr_omraadetuk.pdf actions taken to support these rights http://www.cheminova.com/en/sustainability/csr_policy/man- agement_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 katorer_hr_omraadetuk.pdf of child labour http://www.cheminova.com/en/sustainability/csr_policy/man- agement_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 katorer_hr_omraadetuk.pdf elimination of forced or compulsory labour http://www.cheminova.com/en/sustainability/csr_policy/man- agement_approach_to_csr_management.htm Society Management approach http://www.cheminova.com/en/sustainability/csr_policy/man- F 10 and 49 agement_approach_to_csr_management.htm Aspect: Community S01 Impacts of operations on communities, including entering, - F 21 operating, and exiting Aspect: Corruption SO3 Percentage of employees trained in organisation’s anti-corruption http://www.cheminova.com/en/sustainability/csr_policy/man- P - policies and procedures agement_approach_to_csr_management.htm Aspect: Public policy SO5 Public policy positions and participation in public policy develop- - F 21 ment and lobbying Product responsibility Management approach http://www.cheminova.com/en/sustainability/csr_policy/man- F 49 agement_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 12 and percentage of significant products and services subject to and_health.htm such information requirements Covering all plant protection products

48 Corporate Social Responsibility Report 2012 Special references

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

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

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.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 csr_policy/code_of_business_principles.htm and which support responsibility in relation to management, cooperation and society

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

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

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

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

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/ ment csr_policy/management_approach_to_csr_man- agement.htm

Principles of good corporate management The statutory report on Corporate Governance 2011 http://www.cheminova.com/en/about_us/gover- – comments on recommendation on good corporate nance/report_on_the_financial_reporting_pro- management cess_and_internal_controls.htm

Corporate Social Responsibility Report 2012 49 Glossary

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

50 Corporate Social Responsibility Report 2012 Corporate Social Responsibility Report 2012 51 A companyHELPING 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