Sustainability Report 2020 02 Content

Sustainability report 2020 02 Content

Content

A year in review 03 An unusual year 04 This is Scandza 06 Our approach to ESG 10

E|Be better for the environment 16 S|Contributing to the society 29 G|Ensuring business integrity 38

GRI - Index 45 Appendix 51

Index

This is an interactive pdf. Click the index button and return to table of contents at any time.

www.scandza.com A year in review

Revenue:

More than 50% 5.009 MNOK of our employees are industrial workers

9.4 MNOK 30% investment into water treatment technology reduction of sugar in Synnøve’s Greek yoghurt since 2017

70 number of employees that received 17% digital sales training reduction in emission intensity

Number of Gender balance employees Women 40 % Scandza Norway - 440 Men 60 % Scandza International - 434 Bonaventura - 71 We established a The Feelgood Company - 67 women’s network Index

An unusual year

2020 has been a challenging year and the Covid-19 pandemic has tested our ability to adjust, innovate and excel. We managed to succeed because it lies in our DNA to be agile and entrepreneurial, and “Proud to serve our kids”.

We are impressed by how the tasty, healthy, green, and relevant and the strong link between the Scandza Group* responded to the products that we are “Proud to two. High quality products have pandemic, keeping our operations serve our kids”. To be better for the always been at the core of the intact, continuing to deliver on our environment and better for you, by Scandza culture. Making products promises, and at the same time providing healthier products, are that are healthy and have a low strengthening the fundamentals of two promises we give the consumer. environmental impact is a there- Scandza. Scandza is a lean organ- To deliver on these promises, we fore a high priority to us. ization, with employees empow- must systematically work on the ered to make a difference. environmental, social and govern- Throughout 2020 we have reduced ance (ESG) aspects of our business. our emission intensity in our produc- We are humbled by how all our tion with 17 per cent. Each business employees endured extremely strict Climate change, loss of biodiversity, area has worked to cut the use of health and safety procedures, coped malnutrition and inequality are global plastic in product packaging – the with being placed in home offices, challenges that must be solved if new Sørlandschips bag alone has ensured continuous production at all we are to reach the UN Sustainable eliminated more than 80 tons of our production sites, and maintained development goals. As a food pro- plastic compared to 2019! We have focus on servicing our customers, ducer and distributor of fast-moving also provided more sustainable as well as internalized the necessary consumer goods, we are a part of alternatives to the end consumers. tools and know-how to continue the solution. We focus our efforts Berit’s and Go’ Vegan are both doing our job throughout the year. to improve our environmental foot- strengthening their positions as We have learned from the challeng- print by cutting emissions and providers of plant-based products, es we met, and this gives us great increasing resource efficiency in and Synnøve are finding new ways confidence that Scandza is more than our production, as well as coop- to cut sugar and fat in their dairy capable to face new challenges in the erating with our suppliers and products. This is only the beginning, future. customers to ensure sustainability and we will continue to work dili- throughout our value chain. gently to deliver on our promises. Our purpose is to make Scandi- There is an increased awareness navians’ lives better by providing about health and sustainability, We are experiencing that national

*Jordanes AS including all its direct and indirect subsidiaries, hereafter referred to as “Scandza” or “the Group” 05 An unusual year Index

Scandza's Executive Board. From the left: Karl Kristian Sunde, Stig Sunde and Jan Bodd. and international regulations con- Our promises are to provide products cerning social and environmental issues are changing, and our stake- with great taste, that are better for the holders are increasingly asking for more detailed information about “ environment, better for you and that how we manage and govern ESG issues. This is our first comprehen- engage your heart and mind.” sive document which illustrates our priorities, activities, and results for 2020, as well as our targets going Scandza Group’s Executive Board forward. We invite you to follow us on our journey and welcome your feedback on this inaugural sustainability report.

Jan Bodd - (Co-founder and partner) Stig Sunde (Co-founder and partner)

Karl Kristian Sunde (Partner)

www.scandza.com This is Scandza

Scandza is a Nordic producer and distributer of fast-moving consumer goods (FMCG). We own and manage iconic brands, and serve the Scandinavian, Estonian and UK markets. 07 This is Scandza Index

Our business areas Scandza has four main business areas with complementary roles and have different positions covering several categories, channels and geographies.

Scandza Norway and Scandza International are the two largest business areas with established brands and directly controlled production sites in Norway, Denmark and Sweden.

The Feelgood Company has influencer-fueled brands in high- growth categories and channels supported by mega trends, inno- vative marketing methods and product development.

Bonaventura sells a broad portfolio of internationally renowned brands from leading principals.

Scandza also operates sales offices and storage facilities in the UK and Estonia.

Revenue 2020 Revenue 2020 Revenue 2020 Revenue 2020 2,574 MNOK 1,081 MNOK 584 MNOK 1,050 MNOK

Brands Brands Brands Brands Synnøve Finden, Sørland- Bisca, Lindvalls, Brödernas, BeritTM, Elle Basic, Bodylab Finish, Scholl, Semper, schips, Finsbråten, Leiv Vidar, Karen Volf and Nbev Simple, Nuxe, MAM and Peppes Pizza, Go’Vegan Piz Buin, Royal 08 This is Scandza Index

Scandza's Raw material producer value chain 78 per cent of the raw material used in Scandzas own production sites are sourced from the Nordic region.

Principals Aﬃliated production Aﬃliated production International brand producers sites in EU sites outside EU i.e Unilever, Semper, RB, Vitamin Less than 10 per cent of our Less than two per cent of our Well, Aeris, Bambino MAM and products are sourced outside of products are produced outside Johnson & Johnson. Scandinavia. of the EU.

Traded through Bonaventura Scandza

Central storage units Scandza's production sites Scandza Norway, Scandza International and The Feelgood Company produce products in Scandinavia.

Retail 74% Horeca and Industries 5% Pharmacies 4% Online 4% Other 3% convenience 10%

End consumer www.scandza.com 09 This is Scandza Index

Our production sites

Brand Location

1 Alvdal

2 Namsos

3 Hardanger

4 Tolga 2

5 Hønefoss

6 Gruemyra 4

7 Markaryd 1

8 Gothenburg 3 6 5 9 Stege

10 Kristiansand 10 11 Hadsund 8

7 11

www.scandza.com Our approach to ESG

Our purpose is to be proud to serve our kids. An important part of this purpose is acting responsibly and working towards being sustainable across all parts of our business and efficiently managing environmental, social and governance (ESG) risks and opportunities. This enables us to provide great products that are better for the consumer and better for the environment across the Nordic markets. 11 Our approach to ESG Index

Trends impacting us Næringslivets Hovedorganisasjon or economic impact. The assess- Consumer habits are changing (NHO), Svensk Livsmedelindustri ment is based on the reporting towards more healthy and sustain- and Dansk Industri. principles in the GRI Standards2 ably produced foods. Stakeholders and it was last updated in 2020. are seeking more transparent and Transparency about ESG It forms the foundation for our relevant ESG information, and in- Political expectations and the finan- ESG strategy, what we focus on in ternational and national regulations cial industry’s valuation of how our reporting and day-to-day work. regarding sustainability are tighten- we manage environmental, social ing. We view these changes as an and governance (ESG) issues are Stakeholder dialogue opportunity to position Scandza increasing. This requires a more Having an open dialogue with as a sustainable and responsible detailed understanding about our stakeholders is important participant in the Nordic markets. our risks and opportunities, more to Scandza. We have continuous granular data to document perfor- engagement with our key stake- Meeting consumer’s preferences mance and support communica- holders throughout the year While price remains a decisive factor tion, as well as the implementation These include employees, owners, influencing consumers’ in-store of sustainability into Scandza’s customers, consumers, suppliers, choices, sustainability concerns core strategy. financial institutions, national and are increasingly playing into local authorities, local communities, their decisions1. Origin, nutrition, We have identified our and civil society. A full overview of dietary requirements, mode of sustainability priorities our stakeholder engagement and production and disposal are topics Being a responsible market partici- the topics raised is included in the of interest. Increased awareness pant has been a priority to Scandza appendix of this report3. The topics about health and environment is since its establishment in 2007. In raised have provided essential resulting in a demand for plant- 2018, Scandza went from being a input into our materiality assess- based products, and the attention private equity funded company ments which defines material to sustainable packaging is high. to an independently owned cor- topics to Scandza. poration. This was followed by the Tighter environmental implementation of a more systematic We will continuously assess and regulations and strategic approach to ESG. update these topics based on European and national, and local dialogue going forward and our regulations are changing the frame- Our first materiality assessment ESG strategy and risk assessments work conditions under which we was carried out the same year, will be updated accordingly. This operate. Norway, Denmark, and identifying topics that are important report illustrates how we have pri- Sweden have all submitted their to our stakeholders and have a oritized and are working with the climate targets to the UN and significant environmental, social, topics raised by our stakeholders. national strategies to cut emissions are now being developed. This will impact our business. The EU Green Deal are communicating strategies for biodiversity, emissions, transportation, circular economy, and agriculture that set out to improve the food system of which Scandza is a part of. We seek to meet all Being a responsible market participant regulatory requirements and monitor these developments closely through has been a priority to Scandza since its our active participation in industry membership organizations; “ establishment in 2007.”

1Opinion's trend report 2020-2022 states that while 80 per cent of the Norwegian population say they are willing to change their behaviour and lifestyle to be more sustainable, only 45 per cent is willing to do so if it increases the cost of the product. Read more here: https://opinion.no/category/trender/ 2The GRI reporting principles are outlined in the GRI 101 Standard: https://www.globalreporting.org/ media/55yhvety/gri-101-foundation-2016.pdf?page=23 3Annex 1 Stakeholder engagement List of material topics This report discloses information on the topics identified as most material to Scandza and is organized accordingly.

• Environmentally friendly production • Sustainable packaging E • Climate risk management

• Health, safety and well-being of our employees • Responsible employer S • Healthy products

• Product integrity • Supply chain management G • Being a responsible market player 13 Our approach to ESG

Proud to serve our kids The foundation of our business is based on our DNA. Our purpose is to be proud to serve our kids and our reason to be is to improve Scandinavians’ lives. We promise great taste, healthy, green, and relevant products. To succeed, we use our entrepreneurial spirit combined with agile systems and processes. Our iconic brands shall guarantee a product that we would be proud to serve our kids. But beyond products, our purpose is also about being of service, leaving a legacy for the coming generations that we can be proud of.

Scandza’s DNA

Our purpose roud to serve our kids

Our love Our iconic brands

Our promises Great etter Engage your etter for the taste for you heart and mind environment

Our resources Enterprising people Agile systems processes

Our reason to be Improving Scandinavians lives

www.scandza.com 14 Our approach to ESG Index

Our strategic goals Our contribution to the UN Sustainable Development Goals towards 2030 • Consumers will trust and prefer our • Support food and agriculture systems that brands because they are better for optimize production and minimize waste, to them and the environment. provide nutrition and promote health for all people • All our brands shall contribute to making the Scandinavian • Protect and enhance the environment consumer healthier and greener. • Promote access and transfer of knowledge, skills and technology • Our brands shall be sustainably produced by default.

Scandza supports the UN SDGs • Uphold human rights and labour standards Scandza is in a unique position to across our own operations and value chains contribute to the world reaching the • Protect workers’ right to collective bargaining United Nations’ sustainable development goals (SDGs). At the same • Focus on non-discrimination, equal opportunities time, we have a particular responsi- and treatment in our own operations and value bility to do so. We produce food chain and beverages, using resources that take a toll on the environment and the climate.

How we manage these resources • Investments in physical infrastructure and is crucial to us as a company. We technology that allows for a sustainable have identified a series of sustain- processing and storage of goods able development goals that we, through our business, will help the world reach. In everything we do, we will consider how we affect our employees, local communities, consumers and the planet, and make this a decisive factor. • Enhance resource efficiency and waste management • Strive for sustainably sourced commodities • Reduce food waste and packaging • Raise consumer awareness about sustainability

www.scandza.com 15 Our approach to ESG Index

Strong governance responsible for sustainability- Whistleblowing procedure and agile management related issues include safety and Whistleblowing provides an Scandza has a firm approach to the security, product quality assur- opportunity to anonymously report management of ESG issues which ance, human resources (HR), potential misconduct; anything is supported by strong governance. financial, legal, and communica- that is not in line with our values Our approach is outlined in our tions. They are also responsible for and policies. Our whistleblowing governing documents, strategies, setting strategic direction in line service is an early warning system and management system. with our DNA, and reporting on to reduce risks. It is an important risk and performance within these tool to foster high ethical standards Scandza has four business areas topics to the Executive Board. and for maintaining customer and operating through subsidiaries in public confidence in us. five countries. All operations comply Production site managers and with applicable national and local country manager are responsible Scandza encourages its employees laws and regulations. Depending for the implementation of Group to report non-compliant working on the nature of the operating policies, strategies, and procedures. conditions, as defined by the Working company’s activities and other local They report to the Head of Com- Environmental Act. In 2020, we up- factors in the individual countries, munication and Sustainability twice dated our whistleblowing procedure, each subsidiary applies an ESG a year through our sustainability which is readily available on our approach suitable to local conditions reporting system. website. The procedure is based on and its specific priorities. the Act and instructs employees and external business partners on how Management system to notify any censurable conditions. Scandza Group's Board of Directors Scandza’s Health, Safety, Environ- Notifications can be made either (BoD) meets quarterly and holds ment (HSE) and Quality management with full name or anonymously, the overall responsibility for ESG system4 allows for an effective and shall be handled seriously, im- in Scandza. This report is reviewed distribution and communication of partially, properly, and adequately. and approved by the Board. The the governing documents, internal Anyone who, in good faith, reports Executive Board, authorized by the processes, and management of censurable conditions or miscon- BoD to manage the Group, meets deviations for each business unit, as duct shall be protected against any with the CEOs for each subsidiary well as Simployer and our intranet. form of retaliation. several times per month and ESG The quality system meets the British issues are discussed regularly. Retail Consortium (BRC) Standard5 with the CEOs for each subsidiary for food safety, which provides assur- several times per month and ESG ance to customers that our products issues are discussed regularly. are safe, legal and of high quality. CEOs of each business area are The system is audited annually.

Our governing documents

• Scandza DNA • HSSE handbook • Code of conduct • Supplier Standard • CSR Policy • Suppliers Questionnaire

4 Due to the pandemic, the system has not been fully implemented into all business units. 5 https://www.brcgs.com/our-standards/food-safety/ Be better for the environment

As an international food producer and distributor, Scandza has a responsibility to contribute to a sustainable food system. We consider the environment in everything we do. Our goal E is to reduce our emissions, protect the environment and empower consumers to choose sustainable food by providing low-impact products with smart packaging solutions. 17 Be better for the environment Index

Better for the environment – are reported and followed up in by food processing, transportation, our production this system. Each production site packaging and retail activity. We believe that a high level of uses the same HSE-documenta- environmental performance will tion requirements, but they work The largest potential to reduce be essential to succeed as a food differently based on the nature of food-related emissions is to change producer in the years to come. their production. All production to a more plant-based diet and Enhancing resource efficiency in sites have a designated manager reduce food waste7. The processing our operations is therefore one of responsible for the environmental of meat and dairy products are our main priorities today. performance of the site. The amongst the most energy and manager prepares environmental carbon intensive activities within The manufacturing, processing, reports which are presented twice the food production industry8. As and packaging of products con- a year to the Group Management Scandza is particularly involved tributes to air, soil, and water and CEO. with these activities, we will work pollution and GHG emissions. diligently to improve the resource Scandza has 11 production sites Scandza has not identified any efficiency of our modes of produc- in three countries, and we believe non-compliance with environmental tion. Our target is to reduce our we can contribute to the sustain- laws or regulations throughout 2020. emissions by 50 per cent by 2030 able development of the food from 2019 levels, and through off- system by ensuring a high level Our emissions setting, be climate neutral by the 6 of environmental performance in The global food system accounts end of the decade. our production. This is an ongoing for 37 per cent of global Green- process that requires systematic house Gas (GHG) emissions. and continuous work to ensure The figure below illustrates the mapped emissions within the glob- the right technology, infrastruc- READ MORE ABOUT ture, and competence. Our focus al food system. Agriculture and this year has been to organize and land use account for 82 per cent how we work on product map the needs in our organization of total emissions, while the re- environmentally friendly to develop sound targets going maining 18 per cent is generated product development forward.

Each production site within Scandza complies with applicable national and local laws and regulations. Each site prioritizes their efforts according to local conditions and needs to meet company-wide targets. Emissions in the food Our Code of Conduct, Corporate Social Responsibility (CSR) Policy system (%) and the Health, Safety, Security & Environment (HSE) handbook are the main governing documents Retail 3 % that set forth the expectations for Packaging 5 % environmentally friendly produc- Transportation 6 % tion. The HSE management system Food processing 4 % provides a platform for all governing Agriculture and land use 82 % documents, KPIs, processes and the follow-up procedures in case of any deviations. All incidents

6 Includes all the elements and activities that relate to agriculture, production, processing, distribution, preparation, and consumption of food. 7 https://www.unenvironment.org/news-and-stories/press-release/improved-climate-action-food-sys - tems-can-deliver-20-percent-global 8 https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter10.pdf 18 Be better for the environment Index

We reduced emissions with 12 per cent from 2019 to 2020. The reduction was mainly due to our Scandza Group's reported GHG-emissions new refrigeration system at our production site in Alvdal, Norway. 17% reduction in 10000 It is more efficient and uses a less emission intensity 9000 CO2 intensive refrigerating gas and 8000 thus cut 1200 tonnes CO2-equiv- ilants. The carbon emission intensity 7000 per tonne produced was reduced 6000 e from 0.204 tCO2/tonne to 0.169 2 5000 tCO2/tonne in 2020. This is a 17 tCO 4000 per cent reduction in emission 3000 intensity. 2000 1000 Accounting method The consolidation of emission 0 data is gathered from our largest 2019 2020 production sites where Scandza Scope 1 Scope 2 Location-based holds operational control9 and are calculated according to the Green- house Gas Protocol10. Scope 1, and 2 emissions are accounted for in 2019 2020 this year’s report. We aim to report on scope 3 emissions in 2021. Scope 1 (Transportation, stationary combustion, refrigerants) 7021 5811

Scope 2 (Location-based electricity, district heating) 1841 1963 Carbon dioxide equivalents (CO2-eq) is a metric measure used to com- Scope 3 - - pare the emissions from various greenhouse gases based on their When calculating scope 2 electricity with market-based emission factors emissions are 2019: global-warming potential (GWP)11, 12. 8661,9tCO2-eq; and 2020: 11444,2 tCO2-eq

Definition of Scopes

Scope 1: All direct GHG emissions Scope 2: Indirect GHG emissions Scope 3: Other indirect emis- from sources that are owned or from consumption of purchased sions, such as the extraction controlled by the reporting entity. electricity, district heating and and production of purchased cooling. materials and fuels not covered in Scope 2.

9 Data is collected from our production units in: Alvdal (NO), Hønefoss (NO), Kristiansand (NO), Namsos (NO), Stege (DK), Gøteborg (SE) and Stømsnesbruk (SE). 10 https://ghgprotocol.org/ 11 The CO2e is calculated based on the GWP used in the Fourth Assessment Report from the Intergov- ernmental Panel on Climate Change (IPCC): https://www.ipcc.ch/assessment-report/ar4/ 12 The emissions included in the CO2-eq are Carbon dioxide (CO2), methane (CH4), Nitrous oxide (N2O), Sulfur hexafluoride (SF6), Nitrogen trifluoride 19 Be better for the environment Index

Water consumption

500 000

400 000

300 000 m3 200 000

100 000

0 2018 2019 2020

Resource efficiency made a 9.4 million NOK investment Energy efficiency Resource efficiency means using into new water treatment tech- Energy consumption for heating, resources in a sustainable manner nology on our production site in refrigerating, combustion, electricity, while minimising impacts on the Namsos to meet local regulations. and transportation in our produc- environment. It allows us to create tion accounts for the majorityof more with less and to deliver At our production site in Alvdal we Scandza’s energy consumption. greater value with less input13. installed a system-tracer in 2017 for Several energy efficiency measures For Scandza, this means minimizing the optimization of water consump- have been taken throughout 2020. waste generation and increase tion, energy use, and the use of At our production site in Denmark, recycling, and reduce resources chemicals in the washing stations. a new energy monitoring system consumption per product pro- This has reduced the amount of has been implemented to optimize duced. A big challenge to increasing chemicals used by 90 tonnes despite energy use and a new position has resource efficiency is linked to an increase in production. It has been established to monitor and regulations and technological enhanced energy efficiency by improve environmental perfor- limitations. lowering the temperature of water mance. Scandza’s energy intensity used and lowered the number of decreased from 1,802 MWh/tonnes Water management washings needed, reducing the in 2019 to 1,715 MWh/tonnes None of Scandza’s production required drainage capacity. produced in 2020. sites are sourcing water from water stressed areas, but we are conscious of our consumption of In 2020, we made a 9.4 million NOK water and our treatment of the water we consume. Since 2018, we investment into new water treatment have reduced our water consumption by 181 000m3. In 2020, we “ technology.

13 https://ec.europa.eu/environment/resource_efficiency/ 20 Be better for the environment Index

In 2019, Scandza carried out a and plastic is recycled and accounts Future environmental initiatives project with Norsk Energi to map for 16 per cent of the total reported Going forward we will prepare our energy efficiency improvement waste. The remaining waste from organization for reporting on Scope areas at our production sites in organic material (food), residual or 3 emissions in 2021 and develop Alvdal and Namsos. A number of wood waste is incinerated in clean carbon intensity KPI’s. We will work the recommendations from the waste to energy plants. to standardize waste management project will be executed in 2021 to on all production sites and work further enhance energy efficiency Reducing food waste is of major to enhance resource efficiency. in our operations. environmental importance, and Concrete measures that are Scandza has worked diligently to planned for 2021 include: Minimize waste generation reduce food waste for years. and increase recycling However, strict regulations as to • Lindvalls will work towards ISO The majority of the waste produced how excess food in production 140001 certification by Scandza is related to our produc- may be utilized is a significant • Implement the system-tracer at tion sites. The figure below shows barrier to solve this issue. In 2020, our production site in Namsos the total amount of waste produced a new pilot system estimated to • Implement recommended energy at our production sites in Norway, reduce food waste on the assem- measures at Alvdal and Namsos. Sweden and Denmark throughout bly lines by 50 per cent has been 2020. All waste is treated according tested at our production site in READ MORE ABOUT to national and local laws and regu- Denmark, and the results of this lations. All reported electronic waste, system will be clear next year. how we help to reduce food waste glass, hazardous waste, metal, paper amongst consumers

Waste Scandza 2020 (kg)

Total Wood Residual Plastic Paper Organic Metal Hazardous Glass EE

0 200 000 400 000 600 000 800 000 1000 000

www.scandza.com 21 Be better for the environment Index

Product packaging circular economy for plastic. Our as access to recycled plastic mate- We have a significant potential goal is to reduce the volume of rial is limited. Consequently, only to reduce upstream waste gen- plastic used in packaging, and en- about 30 tonnes of recycled plastic eration and recycling through sure that all packaging is recyclable, were used in our packaging in 2020, improving product packaging. recycled and biodegradable by while approximately 160,000 tonnes Product packaging has several 2030. were virgin plastic. functions: protection, information, and enhanced product duration. We will continue to pursue recycled The quality of plastic makes it a packaging materials for our prod- well-suited packaging material. ucts. As the market for recycled However, as it consists of non- plastic increases, we will continue renewable resources and poses to focus on cutting and/or replacing a significant natural threat when plastic with more environmentally not handled appropriately, it is no friendly materials. In 2021 we plan longer a viable option. Our mission to start screening and evaluating is to develop environmental pack- all packaging according to our aging that does not compromise environmental criteria and establish level of protection or duration of Throughout 2020, all new products’ a strategy to improve existing the product. packaging was designed with the packaging. aim of meeting the 2030 target. Through Plastløftet Scandza is Still, the vast majority of our committed to contribute to a more packaging is made from plastic

www.scandza.com 02222 ThisWeBe better promise is Scandza for to the be environment better for the environment

Finsbråten’s Cold Cuts cut plastics

In May 2020 Finsbråten relaunched its range of cold cuts with new packaging.

Without compromising the the premium quality of the product, they sought to find the best environmental solutions by reducing the amount of plastic used, prolonging shelf life and preventing food waste.

Eco-friendly packaging Finsbråten tested many different materials, including recycled plastic, recyclable plastic, bio-degradable plastic, bio-based plastic, and different combinations of these. However, due to the limitations of existing waste sorting and recycling technology, the most environmentally friendly option was to limit the use of plastic all together.

This resulted in the new paper-lite packaging, where 10 grams of plastic has been replaced with renewable paper per package. This has reduced the use of non-renewable packaging materials for the product by about 17 tonnes in 2020. 02323 ThisWeBe better promise is Scandza for to the be environment better for the environment

Sørlandschips replaces plastic with paper

Sørlandschips works systematically to reduce its environmental impact by finding more sustainable packaging solutions.

Plastic pollution is one of the largest environmental threats we face today. Sørlandschips’ focus has therefore been to reduce the amount of plastic entering the market through their products.

In January 2020, Sørlandschips launched a new chips bag increasing the use of paper by 80 per cent. The bag has been developed through long-term cooperation with business partners on packaging and has eliminated 80 tonnes of plastic compared to 2019. Sørlandschip's ambition is to develop a chips bag made from 100 per cent renewable resources within a few years. 24 Be better for the environment Index

Better for the environment year to discuss new solutions, Scandza has therefore opted for - our products progress, and map future needs. the use of proteins from peas and Scandza wants to meet consumers’ sunflower in our products, which expectations and positively influence Developing new are considered low-risk raw their dietary choices by offering low-impact products materials. environmentally sustainable prod- We are experiencing increased ucts. We are experiencing a shift in interest in vegan and vegetarian Scandza views plant-based products the Nordic consumption pattern options which are good for public as a promising business opportunity towards more plant-based products. health and the climate16. However, aligned with our values and ESG This is primarily due to health and they present new environmental goals. However, we are aware of environmental reasons14, and in dilemmas. Soybeans are a common the environmental challenges it line with Nordic Food-Based Dietary protein source used in these prod- poses and are continuously seeking Guidelines, which recommend ucts. While being less carbon inten- new solutions that are better for reducing consumption of red and sive than meat production, soy- the environment. processed meat15. beans are often produced in areas of high risk for both biodiversity In 2021 we will set KPIs for our The overall responsibility for and social aspects of production. products and implement a score- product development sits with The World Wildlife Foundation card system for sustainable product the Market Director, our Quality warns that “Without proper safe- development. Manager and key resources related guards, the soybean industry is to ingredients and taste, who are causing widespread deforestation READ MORE ABOUT leading and coordinating the work and displacement of small farmers on this issue at a group level. A and indigenous peoples around the how we work with environmental working group meets twice a globe”17. issues in our supply chain

14 https://euobserver.com/nordic/142318 15 The current guidelines are from 2012 and focuses merely on the health aspects of diets. A new version will be finalized in 2022, and it is expected that this will assess the environmental impacts of the Nordic diets. See 2012 guidelines here: https://www.norden.org/en/publication/nordic-nutrition-recommendations-2012 16 https://www.ipsosglobaltrends.com/2020/02/climate-change-food-and-sustainable-behaviours/ 17 https://www.worldwildlife.org/industries/soy 02525 ThisWeBe better promise is Scandza for to the be environment better for the environment

GO’ Vegan

In 2017 we launched our plant- based product line GO’ Vegan. Three years later, we have expanded the concept across product categories.

The brand has established itself in the Nordic market and enjoys an 82 per cent recognition rate amongst its target groups.

Plant-based In 2020 we launched the Go’Vegan sausages sausages produced at our production unit in Hønefoss, Norway. The product was granted the Superior Taste Award by The International Taste Institute and has been massive success in Norway. It has been a great success, and both NorgesGruppen and Rema 1000 brought these sausages into their stores in 2020. COOP will follow suit in February 2021. 02626 ThisWeBe better promise is Scandza for to the be environment better for the environment

Introducing plant-based products to the Nordic market

Berit™ seeks to inspire consumers to eat healthier and more sustainably by providing plant-based products high on fiber.

Experiences from Europe and the US suggests that popular categories such as diary provides an entry for plant-based alternatives.

Berit™ introduced Mylk™ in 2018 - an oat-based drink without sugar or artificial sweetener. The drink comes in various forms and flavours. Sjoko Mylk™ is the only chocolate flavoured drink, diary and non-diary, in Norway without added sugars and has become especially popular with children.

In Norway, plant-based drinks have grown 42 per cent in 2020, while Mylk™ has had a 96 per cent growth in the same period. We are proud to contribute with healthy and sustainable alternatives to the Nordic market. 27 Be better for the environment Index

Climate change is changing opportunities we face, as well Financial Disclosures (TCFD) to how we conduct our business as obtain a firm grasp of how to improve and increase reporting Combating climate change and successfully manage these issues. of climate-related financial infor- protecting the environment are at The expectations for transparent mation. The reporting framework the top of the global agenda and a and comprehensive reporting sets out to identify the risks and public concern. This influences inter- of these issues are increasing. In opportunities related to climate national and national regulations, response Scandza will undertake a change and assess how these are financial markets, technological climate risk review in 2021 in accord- managed in an organization. innovation, consumer preferences ance with the recommendations of and market developments. the Task Force on Climate-related Financial Disclosures (TCFD). Such fundamental changes impact how we conduct our business. About TCFD To remain competitive, we need The Financial Stability Board created to understand the risks and the Task Force on Climate related

www.scandza.com Index

Meet Sørlandschips’ potato expert

It takes one year to produce the perfect potato. Through close cooperation with farmers, Tommy works continuously to maximize the utility of the crops and ensure the quality of the potatoes used in the Sørlandschips.

There are numerous types of every one potato is therefore im- Sørlandschips. “We have certain potatoes in the world. The most portant,” Tommy explains. criteria. They need to follow the common in the Nordics is Asterix, standard for quality systems in but at Sørlandchips they prefer the The standardized size of a potato agriculture, which allows for full Lady Claire. “Lady Claire contains is between 40-70mm. Those small- traceability about the products less water and is therefore more er or bigger are usually reduced and the necessary documentation. suitable for frying. This is giving to animal feed. “This is mainly Moreover, we are looking for farmers that perfect crunch to our chips,” aesthetics. We therefore accept we can cooperate and innovate Tommy Christiansen says. He has potatoes ranging from 35-75mm,” together with,” Tommy says. worked with potatoes for over 20 he explains and adds that they will years and is Sørlandchip’s potato continue to increase the range of Farming in Norway and Denmark expert. potato sizes used going forward. is advanced. Professional skills are essential to survive as a farmer, Potatoes are one of the few veg- Sørlandschips are the only potato and Sørlandschips seeks to be a etables that thrives in the Nordic processer that has made this adjust- partner in developing the agricul- climate. Providing large crops per ment. “It means a lot financially to tural sector. One of Tommy’s most acre, they are one of the most the farmer, and for us it means that important tasks is to visit farmers sustainable raw foods produced. we utilize 85-90 per cent of the pota- and discuss production methods toes that is produced for us,” Tommy and cultivation technology. “I follow Maximizing utility says. “To us it is about respecting the all stages closely to learn and to It takes a year to sow, grow, and food and the work that goes into the ensure that the products are of harvest a potato. The Sørland- production of it,” he adds. the highest quality and that we schips factory receives about 16 are able to utilize as much of 600 tonnes of potatoes every year, Close cooperation with the crop as possible” he says. and processes about 80 tonnes the farmers potatoes per 24 hours. “Producing Sørlandschips has 45 farmers potatoes for animal feed is not good providing potatoes to their factory for business, nor the environment. in Kristiansand, Norway. Each Maximizing the utility of each and one is skilled and handpicked by

www.scandza.com Bonaventura Scandza donating goods to the Poorhouse in Oslo.

Contributing to the society

As a manufacturer and distributor of food products and everyday consumer goods, our impact on the societies in which we operate are many. As an employer our main responsi- S bility is to ensure our employees’ health, safety, and well-being. As a food manufacturer, we aim to provide healthier products to the Nordic markets. 30 Contributing to the society Index

Being a responsible employer Our employees are the foundation of our success. Valuing and ensuring their wellbeing is a core sustainability pillar for Scandza. Our main priorities are to provide safe and healthy working environments, to be an inclusive organization and to every day make sure they are given the opportunity to evolve and excel.

By the end of 2020, Scandza Group had 1012 in employees in total. Their tasks vary from manufacturing and handling heavy machinery, to product development, sales, man- Our Health Safety and Environment case of an event. We place great 18 agement, and administration . (HSE)-handbook provides an over- emphasis on exchanging knowl- view of routines, functions, KPIs, edge and experiences across our The BoD holds overall responsibility targets and applicable laws and sites to enhance the health and for our employee’s health, safety, regulations on HSE-issues. These safety in our production processes. and well-being, and to ensure that are all monitored in our manage- To do so, we have established a all operations are carried out in ac- ment system, which is externally working environment committee cordance with applicable laws. The and internally audited annually and a cooperation committee, HR director is responsible for the and complies with applicable laws which each meet four times a year. development and implementation and regulations. All employees of overarching policies and proce- and others working at facilities Emergency procedures and contin- dures. The CEO of each company controlled by Scandza, are covered gency plans are maintained by holds the responsibility for ensur- by our management system. Scandza’s head office and are held ing that all business is conducted in each of the local offices and pro- in accordance with applicable laws Introduction to the governing docu- duction facilities. General risk eval- and regulations, as well as the ments and training in HSE is a part uations are carried out for specific Company’s policies and strategies. of the onboarding process for all our activities at a company-wide level. The CEOs report directly to the employees. The process is tailored There is a local responsibility to carry BoD. to the tasks of the employee, and out the specific risk evaluations rele- it is the closest manager who is vant to individual sites. Health and safety is at responsible for providing ade- the core of everything we do quate training. Additionally, all Our approach to identify hazards, Scandza has a zero-accident policy. safety representatives and mem- reduce HSE-risks, investigate The health and safety of our employ- bers of the working environment incidents and promoting health ees has the highest priority and committee are given a 40-hour is explained in the figure below. Scandza aims to continuously main- HSE-course. All managers are Health and safety assessments of tain, improve, and develop healthy given individual HSE-training. all sites are carried out annually, working environment conditions. and each production adjust their Larger production sites have a responds to the nature of production Our Code of Conduct and CSR designated safety representative, at that site. Policy provides guidelines for the additional HSE-training for the responsible business conduct. managers, and HSE task forces in

18 Some of our business areas will increase staffing during holiday seasons or busy periods. These roles are employed directly with a temporary contract or through an agency. A total of 67 people was tem- porarily employed throughout 2020. 31 Contributing to the society Index

•Work related hazard risk mapping •Internal control •Absence reports •Deviations registered •Security checks and reports •Recruitment recuirements t P •Health checks •Measures to meet individual needs c l •Mapping of health risks related to re a •Measures to reduce total risks r n wear and tear.

o •HSE targets and plans

E e •Continous dialogue with workers x t e •Training and competence c a •Targets set in HSE plan u lu •Insurance for all •Implemented measures t •Investments into necessary equipment e va •Competency and know-how E •Facilitating individual needs •Providing physical activities and healthy cantines

More than half of our employees We seek to reduce risks of hazards zero fatalities. We had a total of are production workers at our pro- through training, and we are con- 117 recorded accidents, where the duction sites or warehouses. The tinuously adjusting our procedures majority did not result in absence. most common health and safety according to risk assessments. We risks and in Scandza are related to monitor the health and well-being In 2020, we had a 6.2 per cent sick injuries caused by crush, fall and amongst our employees and offer leave rate, which is a 0.2 per cent physical blows, as well as cuts in various types of health promoting increase over 2019. The rate of our production units. Both produc- initiatives, such as gym member- long-term sick leave was at 3.7 per tion workers and people working ships. cent, which is a 0.5 per cent in- in offices are exposed to muscu- crease over 2019. The production loskeletal disorders caused by All our employees are covered sites have the highest sick leave repetitive movements or sustained by our health insurance which rates in Scandza, with the Norwe- awkward postures. includes medical, mental, and gian meat production industry ex- physical services. periencing a 15 per cent increase The identification of these work- in sick leave since 201919. related hazards, posing risks to our All incidents are reported in our workers, are identified through our management system and followed In Scandza we work systematically annual risk mapping and incorpo- up according to the procedures in to reduce the level of sick leave, as rated into our management system. our HSE-manual. In 2020 we had explained in the figure above. For

High consequence injury Injuries resulting in Injuries resulting Type of consequence Fatality resulting in long absence short absence in no absence

Number of incidents 0 1 32 84

Rate of injury/ 1,000,000 hours 0 0.5 16.8 43.0 worked

19 https://arbinn.nho.no/arbeidsrett/sykefravar_og_permisjoner/sykefravar-statistikk/artikler/sykefravar- i-nho-bedrifter/ 20 https://www.nhomd.no/arbeidsforhold-og-tariff/hms-og-ia/ia-bransjeprogrammet/ 32 Contributing to the society Index

example, Synnøve Finden in Alvdal is In Scandza, we are proud of our paying more attention to sustain- participating in an inclusive working entrepreneurial spirit and agile way ability when buying our products life initiative with NHO to enhance of working across the organiza- and require more information. the understanding of causes of tion. Our company culture is based Our sustainability strategy has sick leave and the potential meas- on trust, which is reflected in our defined how Scandza will position ures to reduce these20. management approach and system itself in response to this market governing our employees. Each of trend. Throughout 2020, we have We will continue our work on Scandza’ s employees are followed increased our organization’s compe- ensuring our employees’ health, up individually to ensure a positive tence on our DNA promises, great safety and well-being. We monitor development pathway within the taste, better for you, better for the these issues closely and follow up company and personally. How this environment and engaging commu- any opportunities for improve- is done varies depending on the nication and design. ment diligently. work description and is decided upon locally. Ninety- one per cent Scandza believes that our success We invest in our people of our employees have received a comes from keeping talent and de- In Scandza, all employees make regular performance and career veloping competency in the organ- a difference. As an employer, it development review in 2020. On ization. We will continue this work is our responsibility that they are our production sites our employees through regular dialogue with our equipped to succeed and maintain also develop through “learning by employees and providing training a work life balance. One of our doing”. Each employee is put into and education for our teams to key competitive advantages is the a team and has a designated perform to the best of their ability. entrepreneurial mind-set of our supervisor. employees, and the responsibility Going forward in 2021 we will they are given every day impact Technological developments and further increase our investments our business. We strive for our digitalization have an impact on in people development by imple- employees to be motivated and how we conduct our business. This menting a Job Architecture Tool, ensure they have relevant compe- requires new ways of thinking and that allows us to work more struc- tence required in our organization. new tools. In 2020, 70 of our sales tured with talent development, Employee programs, training and consultants attended a sales course succession planning and mobility. recruitment are among the tools in digitalization to excel in this new It will also allow us to follow up on we use to make this happen. environment. Our customers are numerous diversity KPIs.

Increased sales competence in 2020

The Covid-19 pandemic effectively made the Scandza sales team taskless when heavy restrictions were imposed on March 12th, 2020. With public financial support from the Oslo City Council, Scandza made the best out of the situation and offered 70 employees digital sales training.

“We saw that the pandemic enhanced the process of digitalization in our society. This affects our interaction with stakeholders, particularly with our customers. We took this great opportunity to provide our sales team with new know-how that will better equip them to meet the demands from our customers in the years to come,” Scandza’s HR director, Nina Westgaard explains.

The course has given Scandza’s sales team the tools to operate more effectively. The sales team report that the course made them more aware of their role as an advisor to Scandza’s customers and the increased opportunities that lies in digital solutions.

“Investing in people is one of the best ways to keep talent and increase competitiveness. This was definitely a good investment,” Westgaard says. Keeping our people safe during the pandemic

The pandemic highlighted the importance of a well-functioning food supply system. Our goal is to always be a reliable food producer and distributor. Keeping our people safe was pivotal to succeed in 2020 and will continue to be so in 2021.

Throughout 2020, we managed to keep all our productions sites open and our organization found new ways of operating to ensure the steady flow of goods to the Nordic markets. Our employees have been operating under strict controls and early on in the pandemic were divided into cohorts to prevent the entrance of the Covid-19 virus and the potential spread of the virus at our facilities.

We started communicating updates and health measures continuously from February 2020. Communication occurred through emails and monitors in common areas to make sure that all staff were updated on the latest restrictions and knew how to act accordingly. 34 Contributing to the society Index

We value diversity In Scandza we believe in diversity in every sense of the word. We have a diverse portfolio of companies, from traditional food production to cutting edge e-commerce companies. We have diverse organizational models, from companies with only women led by women to more mixed groups regarding gender, age, and nationalities.

Our Code of Conduct clearly states that “We do not accept, in any form, harassment, discrimination, intim- idation or other behaviour that may be regarded as disrespectful, threat- ening or degrading.” This applies to restructuring and new policies positions within the organization all employees in all phases of their regarding recruitment and female who met quarterly throughout employment – from recruitment participation the year. The network provides a and throughout their Scandza • facilitating training and providing platform for knowledge transfer, career. Scandza encourages women mentoring programs increased awareness of gender and men equally, to take parental • securing gender balance through diversity, and developing talent and leave and compensates significant the recruitment process. role models through coaching and salary gap during the leave. Scan- mentoring. dza had no incidents of reported In recruitment processes, we ask discrimination in 2020. recruiters to include both men In 2019, we carried out a systematic and women in the final phase. mapping of gender differences in all We acknowledge that at board Throughout interviewing we re- levels of our organisation, as well as and management level we need a quest that both a female and male their salary level. A new benchmark- better gender balance. The table recruiter are present to counter ing assessment will be carried out in below illustrates the large gender gender biases in the recruitment 2021 to monitor our progress. gap in Scandza’s management process. In 2020 Scandza recruited teams. Scandza is working to 38 women and 55 men. In 2020 we Scandza will continue efforts to pro- enhance gender balance by: established the Scandza female mote diversity through our initiatives • increasing awareness and network. The network consists of and expand the female network. preventing unconscious bias, seven women in management

Status gender balance in 202021 Men Women

Group 60 % 40%

Company management 83% 17%

Group management 90% 10%

Board of directors 100% 0%

21 Based on data per 31.12.2020. These do not include seasonal workers. 35 Contributing to the society Index

Better for you Scandza wants to contribute to a healthier society, and our promise is to provide goods that are better for you.

Lifestyle diseases are inherently linked to dietary habits, which leads to reduced quality of life and an economic burden to society. The World Health Organization (WHO) has estimated that by 2030, 70 per cent of global deaths will be due to chronic diseases22. While the majority of these deaths are expected to occur in the US and western Africa, Nordic authorities are also concerned about these issues.

The Nordic Nutrition Recommen- dations from 201223 state that Nordic citizens must increase their intake of vegetables, fruit and berries, fish and seafoods, nuts and seeds. Moreover, they should eat more plant-based foods and low-fat dairy products, while limiting the intake of processed and red meat, sugars, salt and alcohol24.

Scandza has signed the sector agreement to reduce sugar, salt, and fat in our products, while increasing fibres and intake of fruit and vegetables. Our Quality Man- ager is leading and coordinating the work on this issue at a group taste and to develop new healthier content in all cheese from 1.5 per level. A working group meets twice product brands. cent to 1.2 per cent. In the same a year to discuss new solutions, period, we reduced the amount progress and to map future needs. Less salt, sugars, and fats of sugar in all Greek yogurt by Scandza has worked systematically 30 percent. We see that our customers are to reduce sugar, salt, and fat in increasingly asking for healthier our products over the last 5 years. Going forward we will set new KPI’s products, but that changing dietary We have prioritized products sold for healthy products and a corre- habits is difficult. Our strategy has in high volumes in order to have sponding scorecard system which been to make existing products the largest possible impact. Since will further enhance our efforts. healthier while preserving the 2017, Scandza has reduced the salt

22 https://www.un.org/en/chronicle/article/lifestyle-diseases-economic-burden-health-services 23 New, updated recommendations are expected in 2022 24 http://norden.diva-portal.org/smash/get/diva2:704251/FULLTEXT01.pdf 36 Contributing to the society

Synnøve Greek yogurt without sugar and fat

Scandza seeks to provide healthier and tasty products to the Nordic markets.

In 2020, Synnøve launched three Greek fat-free yoghurts containing zero added sugar. The yoghurt is still rich in protein and has the same creamy consistency and good taste as our other Greek yoghurt products.

No added sugar Prior to this launch, Synnøve conducted several surveys among consumers where 70 per cent stated that they look at the nutritional content of a yogurt before buying it and 47 per cent of these ranked sugar as the number one or two ingredient that they consider.

By developing this product, we are meeting the market demand and contributing to a healthier lifestyle by providing a healthy but tasty alternative to consumers. 03737 ThisContributing is Scandza to the society

Synnøve’s Klemmeost Light

In February 2020, Synnøve launched melted cheese in a pouch called “Klemmeost”.

Only seven months later, the Klemmeost Light range entered the market, with the most popular flavours being Creamy Pesto & Avocado, Smokin’ Bacon and Hot Italian Tomato & Herbs.

Less fat, still tasty Less fat light cheese contains 65 per cent less fat than ordinary melted cheese and provides a healthy and tasty alternative to the melted cheese sandwich. Klemmeost Light only accounts for 23- 24 kcal per slice of bread it is applied to.

In addition to being a new and exciting cheese product, the Klemmeost pouch is also better for the environment. The new packaging uses 50 per cent less material than similar products in metal tubes. Ensuring business integrity

Scandza seeks to conduct our business in a manner that allows us to be proud to serve our kids. Our business has significant effects on the societies we operate in and in the areas G from where we source our products. We are committed to ensuring the integrity of our products, and to responsibly manage the risks in our value chain. 39 Ensuring business integrity Index

Product quality within Scandza. Our Supplier Ensuring food safety Our attention to food safety Questionnaire provides a helpful Food fraud is unfortunately and quality gives us the licence to checklist to assess our suppliers. becoming increasingly common operate. Traceability and accurate in the food industry. It refers to product information are key priorities Each production site has a quality “intentional actions by businesses for Scandza. manager that safeguards product or individuals for the purpose of integrity. They report to Head of deceiving purchasers and gaining In the Scandinavian market Scandza Quality in Scandza who is also undue advantage therefrom”26. is among the top three largest tasked with assessing suppliers. This constitutes a risk to consumers, producers in most of the food Head of Quality reports to the CFO animals and to the environment, categories we operate in. It is our and the Vice President of Supply and it ultimately hinders the responsibility to guarantee that Chain in the group. functioning of the market. our products are of the highest quality, safeguard the health of Most production lines relevant All Scandza’s food production sites our customers and ensure that are British Retail Consortium (BRC) meet the benchmarking require- they are produced with integrity certified or to an equal standard ments set by the Global Food Safety according to applicable laws and (see text box). Our quality manage- Initiative (GFSI)27. Audits are carried regulations. ment system provides an opera- out annually, either by GFSI or tional platform, with all governing our customers. We have in place In our DNA we promise to engage documents, processes, and follow-up clear procedures on how to handle hearts and minds. To us this procedures in case of any deviations deviations from the GFSI standard means providing trustworthy from standard operating procedures. or a consumer complaint. These products and knowing that we Hazard analysis and critical control are standardized within the group. have done our utmost to ensure points (based on the International Additionally, we have established their quality, integrity, and safety. Food Standards25) are at the core of an interdisciplinary taskforce that Our CSR policy, Quality policy and our quality system. All incidents re- handles emergency cases. Supplier Standard are the main lated to food safety and mislabelling governing documents that dictate are reported and followed up The social and mobility restrictions how product integrity is managed in this system. imposed by governments in

About the British Retain Consortium Standard

The BRC Standard for food safety, provides assurance to customers that our products are safe, legal and of high quality. The standard focuses on: • encouraging development of product safety culture; • expanding the requirements for environmental monitoring to reflect the increasing importance of this technique; • encouraging sites to further develop systems for security and food defence; • adding clarity to the requirements for high-risk, high-care and ambient high-care production risk zones; • providing greater clarity for sites manufacturing pet food; and • ensuring global applicability and bench-marking to the Global Food Safety Initiative (GFSI).

BRC carries out audits annually.

25 https://www.who.int/foodsafety/areas_work/food-standard/en/ 26 https://ec.europa.eu/food/safety/food-fraud/what-does-it-mean_en 27 https://mygfsi.com/how-to-implement/recognition/ 40 Ensuring business integrity Index

response to the Covid-19 pandemic in which we operate. Scandza follows made it difficult for us to carry out all applicable laws and applicable audits physically at our production food information regulations and sites. However, through digital marketing regulations. These means we managed to adapt and include information and claims re- carry out audits using video tech- garding nutrition, health, sourcing nology. We view these audits to and disposal, and environmental be satisfactory. and social impacts. All products were assessed for compliance with In 2020 Scandza had no incidents of such procedures in 2020. We had non-compliance with regulations or one mislabelling incident which led voluntary codes concerning the to the immediate withdrawal of health and safety of our products. the product. In 2021 we will carry out assessments of the health and safety In today’s market, where there impacts of products, which will are many voices discussing health, inform our strategy going forward. safety and sustainability of specific products, Scandza seeks to be a Providing correct product transparent and knowledgeable information actor that contributes to this con- Consumer awareness about quality versation in a constructive manner. and sustainability issues in the We will continue to monitor the food production sector is growing. situation and find ways to enhance This shift requires us to provide our communication with consumers. more detailed product informa- We will also seek to improve the tion. Topics such as allergies and information available on our website the country of origin of raw mate- to provide more detailed information rials used are of particular interest. about our products. The communication and marketing of consumer goods are heavily regulated in the Nordic markets

The Global Food Safety Initiative’s Benchmarking

The GFSI Benchmarking Requirements defines the key elements required in a Certification Programme regarding:

• Ownership, development and maintenance; • Accreditation; • Relationship with Certification Bodies; • Certification body personnel; • Management of audit and certification. • Multisite sampling and group certification.

Additionally, there are several product-specific requirements. Read more: https://mygfsi.com/how-to-implement/recognition/ 41041 EnsuringThis is Scandza business integrity

Preventing food waste amongst consumers through labelling

Food waste is one of the largest environmental impacts of the food industry.

Scandza wants cut food waste in our own production and help consumers reduce their food waste.

58 per cent of the food waste in Norway originates from households, according to Matvett28.

28 https://www.matvett.no/bransje/aktuelt/best-for-betyr-ofte-god-etter

One of the main reasons is that the product is not consumed before the due date on the package, and that it is consequently thrown out.

Synnøve has introduced “Best før, ofte god etter”- branding developed by the Norwegian food industry on all its products. The initiative is translated into “best to be consumed before but may also be good after”. It aims to encourage consumers to Best før look, smell and taste the product before it ends up in the bin. Ofte god etter Finsbråten, Leiv Vidar, Berit and Synnøve have all signed up to the Industry Agreement to cut food waste with 50 per cent before 2030. 42 Ensuring business integrity Index

Taking control to address through our govern- Scandza has a risk-based approach over our supply chain ance system. Scandza expects full to the management of environmental Governing the social and environ- compliance from all our business and social issues in our supply chain. mental risks in our supply chain is partners regarding anti-corrup- One product we have focused on our responsibility. Ensuring control tion, health and safety, labour and in 2020 is coconut. Coconut-based and reducing negative impacts is human rights, and environment, as ingredients are often used in vegan pivotal to our integrity as a company. detailed in our CSR policy and our products but the coconut is a high- As a producer and distributor of Suppliers’ standard. risk product due to origin and foods and to everyday consumer method of harvesting. We did a goods, Scandza is in a key position The governance of these issues thorough evaluation of our supplier to improve the sustainability of is a cooperation between the of coconuts and concluded that relevant supply chains. supply chain managers and the the product meets our standards. Head of Quality Assurance. An We have a direct impact through initial screening of suppliers is car- Enhancing our work with our our choice of suppliers, raw ried out by the supply managers. supply chain will be a main priority materials, and marketing of our Eligible suppliers are then asked going forward. In 2021 we plan to products, and thus the ability to to fill out and sign the suppliers’ carry out social and environmental enhance demand for sustainable questionnaire regarding social, risk assessments which will be products. We view this as a busi- environmental, governance and followed by impact assessment ness opportunity, and our goal is quality issues. It also asks about of the identified high-risk products. for consumers to trust and prefer any relevant criteria they set for This will inform our priorities going our brands because they are bet- their suppliers. Head of Quality forward, and our governing doc- ter for them and the environment. subsequently evaluates the suppliers uments and procedures will be We expect the food sector to move and determines the next steps. updated accordingly. in a more sustainable direction due All new suppliers were screened to new regulations and changing on social and environmental and consumer behaviour. The agricul- social criteria in 2020. tural sector is facing substantial regulatory changes in the EU and All suppliers of Scandza are expected Scandza Norway is a the Nordics, seeking to stop the to sign our supplier standards, and proud member of: loss of biodiversity and climate corruption risk assessments are change. continuously carried out. Carrying out audits has been difficult in Human rights violations, loss of 2020 due to the pandemic. For biodiversity, increased emissions, new suppliers we have carried plastic pollution, disregard for out audits over video, but larger animal welfare and corruption are audits have been postponed until examples of risks that we seek the situation allows for it.

Scandza Policy on Palm Oil

• Scandza support the principles of the Roundtable on Sustainable Palm Oil (RSPO), and RSPO efforts to encourage and certify sustainable palm oil. • Scandza recognizes RSPO certification as the only established and stable organization and standard for sustainable palm oil. • All use of palm oil in Scandza is certified sustainable palm oil approved by the Scandza Management. • As member of the Roundtable on Sustainable Palm Oil (RSPO), we are encouraging our industry partners and other actual partners to adopt the RSPO standard. 43 Ensuring business integrity

True Gum

In 2020, Bonaventura took on True Gum as a principal. True Gum is a plastic-free, vegan and biodegradable chewing gum, produced in Denmark. It provides a more sustainable option to gum in the Scandinavian market.

True Gum is a kinder alternative to traditional chewing gum. It is free from plastic, glycerin produced from palm oil and artificial flavours.