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Cheminova A/S P.O. Box 9 Tel. +45 9690 9690 [email protected] DK-7620 Lemvig Fax. +45 9690 9691 www.cheminova.com HELPING YOU GROW Corporate Social Responsibility Report 2010 Corporate Social Responsibility Report 2010 Contents 3 Introduction 17 Manufacturing at Chemi- 34 Management access to CSR nova’s formulation site in management 4 About the report - Respon- Australia sibility and challenges 35 Management statement 19 Proquimur: A long-term 6 Fulfilling CSR targets for partner in formulation 36 Assurance statement 2010 21 Sales and product steward- 37 Ownership and organisation 8 CSR targets for 2011 and ship for plant protection beyond products 38 Corporate governance in Auriga 9 Cheminova’s business area 24 Development 40 GRI Reporting 2010 10 Phase-out of WHO class I 25 Production products - Phase-out plan 44 UN Global Compact completed 28 REACH - New EU chemicals regulation 46 Responsible Care 12 Village projects in India 29 Supplier management 48 Code of Business Principles 14 Banana project in Brazil 30 Human Resources 49 Supplier Code of Conduct 16 Formulation and filling activities Appendixes: 50 Accounting policies, CSR 32 Action plan 52 Glossary Date of issue: March 23, 2011. The report is a translation of the Danish original edition. Contact: Lars-Erik Kruse Pedersen ([email protected]) Corporate Social Responsibility Report 2010 3 Introduction ”The phase-out plan has been fully accomplished,and with our new village projects we in future try to take a shared responsibility that reaches further out into the community than our traditional business.” Kurt Pedersen Kaalund A general theme in earlier CSR reports has been the imple- B has been reached. In two articles in this year’s report we mentation of Cheminova’s ambitious phase-out plan for the are passing on impressions of how manufacturing of ready- most toxic, so-called WHO class I products, in developing to-use products is handled by our own company in Australia countries. It is not without a certain amount of pride that now and by a toll manufacturer in Uruguay. Employees in the two I declare the plan fully implemented – on time and without companies describe how CSR related matters are dealt with delay en route. We have achieved our ambitious goal. Along in practice. In Cheminova, CSR is used as an integrated man- with the phase out of the most toxic products, we have intro- agement tool which both meets society’s increasing demands duced a number of new products thus providing the farmer for ethical and social responsibility and practices quality assur- with alternatives and maintaining the company’s position. ance and risk management. In this way the risk of mistakes During the period, the product programme has been extend- and activities contrary to our values is reduced albeit not ed and modernised so that now we have a far more balanced constituting any warrenty. portfolio of products to cover the farmer’s needs. It is obvious that for our mission, vision and values to be- That the phase out plan has been implemented means that come rooted with all employees, a bigger effort than expect- we can now focus on new tasks. Among these are village ed is needed. A questionnaire survey has shown considerable projects which – in agreement with our mission – aim to dem- support for our mission, vision and values – not least the onstrate that with modern farming techniques and correct value ”we are good corporate citizens.” However, values only product use, living conditions for the population in rural areas create value by leading to action. That is why in 2011 we will can be improved. With these projects we try to take a shared intensify the effort to link the values with our everyday tasks. responsibility that reaches further out into the community In 2010, our many stakeholders have again shown great than our traditional business. This is completely in line with interest in our CSR work and the dilemmas and challenges the intention of the UN Global Compact which we endorsed connected with it. The dialogue has provided us with valu- last year. Here, it comes naturally to contribute to the aboli- able input and inspiration for the work with this aspect of the tion of hunger and poverty which is a primary aim in the UN company’s activities. Millennium Goals. It is the hope of my colleagues and myself that the report As a whole, the 2010 CSR report constitutes the annual re- will be well received and that it will provide the basis of a porting required by members of Global Compact. Additionally, continued positive dialogue about CSR. one of the appendices of the CSR report highlights progress con-cerning the implementation of the principles of the UN Global Compact. Reporting according to GRI indicators has Kurt Pedersen Kaalund been continued in 2010 and extended with additional areas President & CEO especially concerning management. This means that GRI level Cheminova A/S 4 Corporate Social Responsibility Report 2010 About the report - Responsibility and challenges This report provides a status of Chemi- report therefore forms our first reporting Structure of the CSR work nova’s work within the area of Corporate to Global Compact. A separate Progress Organisationally, the CSR work is rooted Social Responsibility (CSR) in 2010 and Report can be found on page 44. in Cheminova’s top management, the thereby fulfils the reporting require- Global Executive Committee (GEC), with ments set out in the Section 99a of Content of the report whom the CSR work has been agreed the Danish Financial Statements Act Apart from the usual sections on and who has approved the content of (Årsregnskabsloven). The CSR-activities target fulfilment and target reporting, a this report, see the section “Manage- are founded in Cheminova’s Code of number of focus areas are highlighted ment statement” on page 35. The Business Principles (see page 48), UN in the report. Further we address issues ongoing work is coordinated by the CSR Global Compact (se page 44), the Dan- relating to the dilemmas and problems steering group reporting to the GEC. ish version of the European Chemical in which Cheminova is currently and The focus areas are chosen by the Industry Council’s (CEFIC) Responsible structurally involved. Sections of the CSR steering group with the objective Care programme (see page 46) and report touch on activities relating to of providing an enlightening and sys- FAO’s Code of Conduct [http://www. health & safety, human rights, labour tematic reporting on our CSR activities fao.org/agriculture/crops/core-themes/ standards, environment (both in terms within a number of important areas. theme/pests/pm/code/en/]. of the manufacture and use of products) The inspiration for selecting the specific The CSR report gives information and anti-corruption as reflected in the issues addressed in the present report about Cheminova A/S, all subsidiaries principles of UN Global Compact. is based on input and feedback from and joint venture companies with an The report follows up on last year’s the stakeholders which have shown an ownership of more than 50%. themes and targets. Moreover, sepa- interest in Cheminova’s CSR activities rate sections on new areas of activities throughout the year. GRI and Global Compact based on direct interactions with small- The specific reporting on Global Report- scale farmers in their own community Dilemmas and shared ing Initiative - GRI indicators - provides are included. responsibility a systematic overview of our activities. As a new element in this year’s CSR Cheminova’s business area is an inte- The present reporting represents an report we have included two articles grated part of the world’s food supply. increased focus on making use of these describing the production of finished Through control of plant diseases, pests indicators which has brought the report- plant protection products seen from the and weeds, Cheminova’s plant protec- ing level up to the desired GRI level B. perspective of one of our facilities (in tion products contribute to increase The company joined the UN Global Australia) as well as of a toll producer and improve the yield of the agricultural Compact in 2009. The present CSR (located in Uruguay). crops. Efficient agriculture is one of the preconditions in order to achieve the UN target “End Poverty 2015 - The Millennium Development Goals” which among other things is about reducing hunger, poverty and infant mortality and improving public health. Nevertheless, Cheminova faces a number of dilemmas as a supplier of products to societies and countries where the conditions are significantly different from those in Den- mark but where there is a clear need for Cheminova’s products in order to ensure the supply of food. Especially regarding safety and correct use of the products, conditions can be criticisable and there- fore a special effort is required in this area. Likewise, as a company we have The CSR steering group consists of Ole Zinck, VP, Human Resources, Niels Morten Hjort, Senior VP, Pro- a shared responsibility for contributing duction & Logistics (member of GEC), Christian Bastholm, VP, Safety, Health, Environment & Quality, Uffe to improving environmental and working Stephansen, Manager, Safety & Health, Lars-Erik Kruse Pedersen, VP, Corporate Communication and Jens conditions, especially in connection with Thorsen, VP, Portfolio Management (member of GEC). 5 In 2010, a capital market day was held at the test farm Ytteborg where Cheminova’s business area was demonstrated in test plots. our own production in developing coun- head office in Denmark opened its receive shareholder letters which, like tries, but also through supplier control doors to more than 1,400 interested the investor presentations, provide and stewardship of our products in rela- citizens in 2010, who, based on various updates on CSR activities.

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