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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. This mate- tion to users. The CSR report describes interests and backgrounds, wanted to rial is publicly available on Auriga’s and how we address such issues. learn more about the company. Further, Cheminova’s websites. several politicians including ministers CSR forms part of the dialogue with Openness and dialogue have visited the headquarters with the the company’s customers, many of The report’s primary target groups are purpose of discussing energy taxes and whom appreciate to cooperate actively employees, future employees, the their implication on energy demanding with Cheminova in promoting product authorities, shareholders, customers environmental protection facilities. stewardship and environmental respon- and suppliers as well as any individu- During 2010 various topics have been sibility among farmers. Information on als and organisations who may have an discussed with Danish politicians at the safe use of products – as mentioned interest in Cheminova. Stakeholders are local, regional and national level i.e. loca- in the section on product stewardship – thus defined on the basis of importance tion of a new large hospital, pre-hospital is an integrated part of all direct market- to our day-to-day business as well as readiness and infrastructure/motorway. ing of products to end-users particularly expressed interest in our activities. In India, future cooperation with in developing countries. Cheminova respects the limitations authorities among others concerning Suppliers are audited with focus on which the stock exchanges rules, possible expansion of the production the environment, safety and labour personal data protection and general has been discussed with Chief Minister, standards in accordance with the data protection rules etc. as well as State of Gujarat, Mr. Narendra Modi. company’s “Supplier Code of Conduct” legislation and competition impose on The company is a significant part of which forms the natural basis for a con- openness, but we do of course engage the local society where we operate facil- structive dialogue. in an ongoing and open dialogue with ities with people employed. We contrib- Through the roll-out of the mission, the relevant authorities in the countries ute to the local economy and availability vision and values in 2009 and 2010, the in which we operate. of a variety of jobs. The company makes employees have participated in semi- The company actively strives to keep a point of good neighbour relations and nars about the practical consequences well-informed within the many subject participation in local cultural life and of the company’s values and attitudes areas of relevance to its operations activities. This is of particular importance for the individual employees in their spe- as well as current and potential busi- in geographical areas considered less cific working situations. Like last year, ness areas. Via open literature as well developed in Den-mark and India where monthly newsletters including topics as scientific publications and trade we operate. The potential negative on CSR related issues were sent to sources, the press, specific searches influence on the community by run- employees in all subsidiaries in 2010. on topics and the Internet, information ning production primarily concerns the Such issues are regularly discussed and expressions of opinion in respect of environment which is dealt with by the throughout the global organisation in CSR-related issues are sought, particu- company’s extensive efforts described relation to the daily business both at the larly concerning product properties, side elsewhere in the report. local level and at the head office in Den- effects and applications, and, in general, Several employees are through the mark, e.g. by the works council which, issues linked to dilemmas and contro- democratic system of the society inde- for example, has had the company’s versies within the company’s sphere of pendent of Cheminova elected mem- policies, employee satisfaction and the interest. bers of local political fora. whistle-blower function on the agenda. The company endeavours to ensure Of primary interest to stock market The company holds an open day event and engages in an ongoing dialogue analysts, a number of investor meetings twice a year where the employees with its neighbours, the local commu- are held both physically and online and themselves have the opportunity to nity, authorities, educational institutions, are thus accessible to the company’s show the company and their workplace politicians etc. other stakeholders, including the more to family members, neighbours etc. This This is illustrated, among other than 7,250 shareholders in the parent dialogue initiative attracted 460 visitors things, by the fact that the company’s company Auriga. Shareholders also in 2010. 6 Corporate Social Responsibility Report 2010 Fulfilling CSR targets for 2010

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

Target Fulfilment Product stewardship Phase-out of methyl parathion EC in Brazil Phased out as per plan

Phase-out of DDVP EC in India Phased out as per plan

Implementing the company’s global labelling policy concerning prod- Completed ucts which are marketed under Cheminova trade marks The remainder of the company’s material relating to the safe use of Completed its products will be made accessible to all regions and subsidiaries during 2010 Production of a modular DVD with safety instructions for end-users Four short films have been produced and are available on the Marketing Portal The remaining contracts with those of Cheminova’s direct customers 94% of the contracts have been changed which hold registrations on behalf of the company are being changed in 2010 so that the customers contractually undertake to operate in compliance with the FAO’s Code of Conduct In India, a project comprising a small number of villages will be im- CSR programs have been initiated in nine plemented in 2010. The project will be based on product stewardship villages but with a broader CSR-scope of embedding correct use of plant protection into the daily life and thereby demonstrate the benefits of sustainable product use at village level In Brazil, a village project amongst banana growers will be planned in The project has been initiated in minor farms 2010. The project is to be based on product stewardship and will be in the state of Goias implemented in 2011 Production India: Certifying the environmental management system of the pro- According to plan duction at the Technical Division in relation to ISO 14001 and OHSAS 18001 as per June 30, 2011 India: Reduction of the energy consumption at the Technical Division The energy consumption was reduced by 15% by 3% India: Reduction of the water consumption at the Technical Division Water consumption was reduced by 14% by 5% India: Reduction of the COD emission with the waste water from the The emission was reduced by 14% production plants by 10% India: Absenteeism due to accidents at work will be reduced Reduced from 4.6 to 1.6 lost man-hours per 1000 man-hours Corporate Social Responsibility Report 2010 7

Target Fulfilment Production Denmark: Certifying of the company’s environmental management External audit undertaken in August 2010. One system in relation to ISO 14001 and OHSAS 18001 is maintained nonconformity corrected Denmark: Reduction of the energy consumption when producing Project completed through re-organisation of glyphosate by 5% as per October 1, 2010 production

Denmark: Implementation of campaigns to improve the safety Campaigns carried out as planned but the culture with the primary aim of reducing the number of lost working number of lost working days has increased days from 293 in 2009 to 1055 in 2010, the majority of which were related to unusual icy condi- tions in the winter Denmark: Ensure a well functioning emergency preparedness for Large scale exercise held on April 28, 2010 action on serious accidents through arranging a large scale exercise involving the public preparedness Germany: Absenteeism reduced to less than 4% Absenteeism was reduced to 3.5%

United Kingdom: Reduction of the ergonomic strain on employees A new installation handling big-bags is now in and the exposure to dust use New EU chemicals regulation Registration of the pre-registered substances which must be regis- All 19 substances are registered tered before the end of 2010 Supplier management Conducting 10 official CSR audit visits 19 audits conducted in 6 countries

Introduce Cheminova’s ‘Global QC and CSR manual’ to all Completed subsidiaries

Human Resources The employees in Hungary, Colombia and Germany will be invited to Carried out in Hungary and Colombia. Work- a one-day workshop on Cheminova’s mission, vision and values shops for the Stähler group including Germany are scheduled for 2011 Summary of the conclusions from the roll-out process in 2009-10 The activity is initiated but delayed. Scheduled about mission, vision and values in the shape of a corporate edition to be completed in 2011 of Cheminova’s values which will in future be used in the presenta- tion of these Implementation of an updating and revision of Code of Business The roll-out process did not cause any changes Principles on the basis of the experiences from the roll-out process of the Code of Business Principles of mission, vision and values in 2009-10

Make the policy concerning anti-corruption more specific The policy has been specified and incorpo- rated into the CSR manual 8 Corporate Social Responsibility Report 2010 CSR targets for 2011 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 32. The work on the targets which were not achieved in 2010 will continue in 2011.

Product Stewardship banana crop will be launched among Australia • FAO’s Code of Conduct will in 2011 be small-scale banana farmers in the • Absenteeism due to accidents at included as part of the general sales state of Sao Paulo in 2011. work will be reduced in 2011. and delivery conditions. Compliance • Certifying according to ISO 14001 will with FAO’s Code of Conduct will be Production be maintained in 2011. an integrated part of Cheminova’s • In 2011, the company’s policy for safe general trade conditions in 2011. India behaviour will be updated, and train- • The modular films with safety in- • The environmental management sys- ing programmes for all employees will structions will be extended to more tem of the production at the Technical be accomplished. countries and markets. In 2011, these Division in relation to ISO 14001 and • The quantity of waste for recycling films will be available for Cheminova’s OHSAS 18001 will be certified in 2011. will be increased by 5%. marketing and CSR employees. • Reduction of the energy consumption at the Technical Division by 3% per REACH - New EU chemicals Village projects produced volume in 2011. regulation • Reduction of the water consumption • Registration of the pre-registered India at the Technical Division by 5% per substances that have to be registered • The already launched projects in the produced volume in 2011. before the end of 2013. nine selected villages will be contin- • Reduction of the COD emission from ued in 2011 and 2012. the Technical Division and the inter- Supplier management • Impact assessments and implementa- mediate plant by 5% per produced • In each of Cheminova’s regions the tion of specific improvements identi- volume in 2011. supplier management will in 2011 be fied will be undertaken in two villages anchored with a person with a techni- in 2011. Denmark cal background. • The project “Aakash Ganga” on water • Certifying of the company’s environ- conservation will be initiated in five mental management system in rela- Human Resources villages in 2011. tion to ISO 14001 and OHSAS 18001 • In 2011, knowledge of the whistle- • The project “Saheli” on women will be maintained in 2011. blower function will be spread to all empowerment on safety, health and • The energy consumption will continu- employees of the global organisation. livelihood will be initiated in four vil- ously be optimized through retention • In 2011, knowledge of the company’s lages in 2011. of the certified energy management mission, vision and values will be system according to DS/EN 16001 maintained among the employees of Brazil and compliance of the Danish Energy the global organisation. • The project among small-scale Agency’s demands on energy man- • Communication of the company’s banana farmers in the state of Goias agement according to DS/EN16001. anti-corruption policy will in 2011 be will be continued in 2011 and 2012. • In order to achieve fewer accidents accomplished in selected subsidiaries. • A new project on community devel- and errors at work a programme for opment, safe and environmentally education and training of employees’ friendly disease management of the attitude and behaviour will be organ- ised and accomplished. Corporate Social Responsibility Report 2010 9 Cheminova’s business area

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

Products and Australia are used locally. Products The company manufactures herbicides, from the facilities in the UK and the insecticides and fungicides. The prod- Stähler companies are mainly used in ucts are sold predominantly as ready-to- Europe. use crop protection products under the Cheminova is a member of various company’s own brands, registrations associations, e.g. Croplife, Resistance (permits) and labels. A brief description Management Groups under Croplife, is available on Cheminova’s website of The Confederation of Danish Industry general approval procedures for crop (DI), The Organisation of Processing protection products [http://www.chemi- Industry in Denmark and local trade nova.com/en/cheminova/regulatory_as- organisations. sessments/]. Cheminova also supplies active ingredients which are used for Awards further processing to produce ready-to- In 2010, the manufacturing site of use crop protection products. Moreover, Cheminova’s subsidiary in the UK, the company produces and sells a Headland, won an award for “Excel- number of fine chemicals for use by the lence in Application” given by Deeside chemical industry as well as micronutri- College in acknowledgement of an ents for the agricultural sector. excellent teamwork for a continuous The products which are manufactured improvement culture in the company. at the factory in Denmark are almost This has made Headland manufacturing entirely destined for the export markets an example of what can be achieved. while most of the products manufac- tured at the production facilities in India

Harvesting soybeans and planting catch crop at a Brasilian large-scale farm. Cheminova’s business area is products for the control of insects, fungi and weeds. 10 Corporate Social Responsibility Report 2010 Phase-out of WHO class I products - Phase-out plan completed

As the only company in the business Cheminova published a detailed plan for phase-out of the most toxic products in developing countries at the end of 2006. The plan is now fully accomplished without delay.

With the purpose of increasing safety pattern in the direction of reduced risk New fungicide to be produced when using Cheminova’s products, it to the user a.o. by removing our own instead of toxic insecticide was in 2006 decided to phase out the very toxic products from the market and In the autumn 2009, the production most toxic plant protection products introducing alternatives to the extent of monocrotophos stopped which has in the developing countries. It includes possible. given an opportunity to renovate and sales products which according to The dilemma can be illustrated by the rebuild this production plant at the WHO’s classification belong to the WHO class I product monocrotophos subsidiary in India. In the spring 2010, categories Ia: ”Extremely hazardous” in India which was phased out in 2009. the production plant was ready, and the and Ib: ”Highly hazardous”. The table We have observed that the market has production of the new fungicide azoxys- shows the schedule with countries and almost totally been taken over by the trobin was initiated. products plus status at the end of 2010. competitors who still sell this very toxic Even though this new product is product to the farmers. Cheminova has made in a rebuilt monocrotophos plant More new insecticides introduced developed a new product based on there are not many similarities between During the phase-out period focus has monocrotophos which is significantly the two compounds, neither regarding been on safe use of the products while less toxic than the old product and thus chemical structure, toxicity nor agricul- they were still part of Cheminova’s prod- on par with most other plant protec- tural use. Azoxystrobin is a low-toxic uct portfolio in the specified countries. tion products used all over the world. fungicide sold by Cheminova’s subsid- Further, great efforts have been made to The approval procedure for this product iaries for the control of serious fungus introduce new products - partly prod- has because of staff shortage at the diseases in agricultural crops around the ucts for direct substitution of the class I registration authorities not yet material- world. Productionwise it has in this way products, partly quite different products ized so that this product of less toxicity been possible to replace a very toxic to support Cheminova presence in the has not yet been approved for market- insecticide with a safe (WHO class U) market. ing. Therefore, it has so far not been fungicide (see the outline of classifica- It is a rather difficult process to re- possible to take up the competition by tion on page 21). place a well-known, efficient, cheap and means of this improved though more In 2010, new products constituted very effective insecticide with new prod- expensive product. about 60% of our turnover which re- ucts which are often more expensive In Brazil on the other hand, Chemi- flects Cheminova’s development focus and more complicated to use. Typically, nova’s sales of methyl parathion in its on new products during the last years. more than one new product is needed most toxic form (WHO class I) were Cheminova’s pipeline of new products to efficiently control the same spectrum stopped at the end of 2010. But among is in continuous development with more of insect species as the old product was Brazilian cotton farmers we expect this than 50 projects concerning new active able to handle. very toxic product to be replaced partly ingredients, formulations and further by methyl parathion in a micro-capsule development of existing products. Cheminova’s new position in the formulation (WHO class II) and partly by Totally, more than 200 of the group’s market malathion which have proven suitable to employees are directly engaged in inno- It is obvious that Cheminova with an control the boll weevil. Both these prod- vative chemistry, process development, average market share of appr. 2% has ucts have already been approved for use formulation projects and registration. no decisive influence on the farmer’s in Brazilian cotton. This work demands a close cooperation choice of products. However, we have between large numbers of employees tried to influence the consumption with widely different competences in Cheminova’s global organisation. Corporate Social Responsibility Report 2010 11

Personal protective equipment and the effects of the products are demon- strated at an Indian farmer growing cucumbers.

DKKm 6,000 Total turnover

Sales of new products 4,000

Cheminova stakes on new products 2,000 Through the period Cheminova has experienced a significant growth in the sales of new products which all belong 0 to the less toxic categories of plant 2006 2007 2008 2009 2010 protection products.

Cheminova’s phase-out plan with status Country Product Phase-out year Status India Monocrotophos SL (class I) 2009 Phased out in 2009. Low concentrated granule formulation developed* Phorate granular (class I) 2009 Phased out in 2008 DDVP EC 2010 Phased out in 2010 Brazil Methamidophos EC (class I) 2009 Phased out in 2009 Methyl parathion EC (class I) 2010 Phased out in 2010. Micro capsules maintained* Mexico Methomyl SP (class I) 2007 Phased out in 2007 Methyl parathion EC (class I) 2009 Phased out in 2009. Micro capsules and low concentrated powder maintained* Methamidophos EC (class I) 2009 Phased out in 2009 Colombia Carbofuran SC 2007 Phased out in 2007 Methyl parathion EC (class I) 2009 Phased out in 2009. Micro capsules maintained* Monocrotophos SL (class I) 2009 Phased out in 2008 Methamidophos EC (class I) 2009 Phased out in 2009 Argentina Methamidophos EC (class I) 2009 Phased out in 2009 Cuba Methyl parathion EC (class I) 2009 Phased out in 2008 Taiwan Methyl parathion EC (class I) 2007 Phased out in 2007. Micro capsules maintained*

EC = Emulsion Concentrate; SP =Soluble Powder; SL = Soluble Liquid; SC = Suspension Concentrate * WHO klasse II produkter 12 Corporate Social Responsibility Report 2010 Village projects in India

One of Cheminova’s latest initiatives within CSR is engagement in quality of life, growth and sustainability in a limited number of villages located in the states of India where we do business. In cooperation with local players we want among other things to demonstrate that good agricultural practice leads to improved quality of life to the villagers.

“The whole objective of this acti- Cheminova India - Model village - Service profile vity is to train the farmers on best Advisory services Safe use of pesticides Education, health and hygiene scientific practices and to help them

• Pest identification • Promoting safe use • Clean drinking water update their knowledge for not only and correct use of • Safety kit distribution • Hygiene of village surrounding becoming self standing in a period of products by univer- • Training women farmers • Medical camps three years but also for acting as a sity, dept. experts on safety • Supporting the needy children for • Demonstrations • Awareness about safer education role model for surrounding villages.” • Weed management formulations • Honouring best teachers • Seed treatment • Updating knowledge of P.N. Karlekar, Managing Director, campaigns local medical doctors Cheminova India Ltd. Read the entire article on www.cheminova.com

In India, more than 700 million people Projects building on existing re- live in the countryside, and they are sources in the local community farmers who have been very interested directly dependent on the productivity We cooperate with the local population in participating. The enthusiasm is obvi- of agriculture and that the harvest is in order to demonstrate that a modern ous, also among our own staff in India. plentiful. As Cheminova’s customers are knowledge-based cultivation practice It is important to establish and de- farmers, our products contribute directly will result in increasing prosperity in the velop good relations with the population to increase and improve the yield, and in villages. In many places there are both in the villages. One of the first steps has that way we contribute to improve living resources and goodwill to draw on as been to comply with some of their wish- conditions of the population. regards agriculture. In addition, it has es - even though they are not directly Our company in India does a great job in the preliminary phase of the projects pertinent to agriculture. The monsoon is to promote safe use of plant protection been very useful for us to draw on the a prerequisite to growing crops. But the products. Spreading the message about Danish Embassy in New Delhi which heavy rain also has some side-effects in safe use of our products is in itself quite as one of few Danish embassies in the the form of for instance flooding result- a challenge, but we have increasing world has a CSR office. From its part ing in pollution of the drinking water. success in doing it. Through contacts there has been great interest in our This means that during the rains, the and meetings we influence more than activities and we have been assisted by children often become ill and miss the 230,000 people per year in respect of one of their experts during the start-up education at school. Therefore, we have using the products correctly and protect- phase. met the wishes for better water supply ing themselves when spraying. This has by giving small water purifying devices helped to create a good platform for Things have to be done in the to village schools. In return we have Cheminova in relation to the farmers right order experienced the school teachers’ inter- and in this way it has been possible to The projects were started in 2010 and est in and support for the other activities develop the CSR work further. are therefore in a very early phase, but of the projects. The table shows what we have been well received among local kinds of activities are included in the politicians, consultants and not least project. 13

“Local ownership to the projects requires that the activities provide agricultural, economic and Ajit Inamdar, CFO, responsible for CSR, Cheminova India Ltd. social value to the village community.” Read the entire article on www.cheminova.com

There is great interest for the village projects in India. Here, a farmer shows his field which is devided according to traditional and new method of cultivation.

Rice can be grown in several ways converted to goods and improved stand- to establish the necessary cooperation In West Bengal near Calcutta (Kolkata) ard of living in the village. Tests have between farmers, resource persons, is a village where our project work has been started in the vegetables fields elected representatives and the local au- been well started up. Like most other and more information meetings have thorities. But the intention is that in the places in India, rice is the basic food, been planned where improvements on course of three years the full responsi- and among the farmers there has been the basis of soil analyses etc. will be bility of the activities will be assumed by great interest in bringing the yield of discussed with the farmers. There is the villagers themselves. rice to a higher level. One of the lead- every indication that new methods will ing farmers has taken up the idea and increasingly be introduced already from Status split his rice field in two areas. In one the next growing season. Towards the end of the year, an apprais- area the rice is grown traditionally, and al was made of the effect of the project the other area is treated according to The cows also benefit from the in the first village. Assisted by the Dan- recommendations of the agronomists as projects ish Embassy among others, a temporary regards fertilization and plant protection. Of course, the project also includes report based on interviews and observa- Even though no scientific study of the training in safe use of plant protection tions has been prepared evaluating the improvement has been made the farmer products in all villages. But in addition cultural, financial and social effects of is very happy about the result. The prize to that many other activities have been the project activities. Focus areas for the is that he has been able to harvest started in order to raise the standards. It future work have also been pointed out. substantially more rice in this part of the may be anything from public health cam- The conclusion is that the initiatives of field. paigns to simple clean-up depending the project are functioning and among on the need in the individual village. In the farmers a certain ownership of Sale of vegetables in the market one of the villages was held a veterinary the activities has been created but the The village delivers vegetables to the day in cooperation with a local interest project should focus on a few strategic nearby well-attended market which group “The friends of the cow”. On that areas, and for instance the ownership means that a better yield of eggplants, day the health of the cows and the milk must be extended by involving the melons etc. will result in a gain which production were brought into focus. women of the village even more. goes further than more rice on the Common to the projects are involve- plates. Vegetables and fruit sold in the ment and activation of the local popula- market give an income that can be tion and here an important element is 14 Corporate Social Responsibility Report 2010 Banana project in Brazil: Improved cultivation of bananas by small-scale farmers in Brazil

The project team from Cheminova Brasil has brought innovation and social responsibility to life amongst small-scale banana farmers in a project area in the state of Goias. Application of Cheminova’s fungicide flutriafol by new precision technology helps small- scale farmers protect banana crop against a devastating fungal disease.

Small-scale farmers in the banana area April 2010, in a process where the idea with a better result. The methodology is of the southern part of Goias on average of introducing a new application technol- simple and quick, and a farmer can treat have less than 10 hectares of land. The ogy with flutriafol was discussed with 2 hectares with about 3,200 plants in most important crop disease in this members of the farmers cooperative in one day of work. area is called yellow sigatoga, a fungus the area. Cheaper, better and environmentally that reduces the yield and quality of Meetings with local and state exten- friendly are some of the key words the banana crop. The livelihood of these sion experts were arranged to evaluate the advisors and the farmers use to farmers depends heavily on production the potential impact of the new method describe the impact. It has also been of bananas for local consumption in Bra- never used before. Efficacy trials had noted by the advisors that avoiding min- zil. The quality of the produce from the shown very god results with a reduced eral oil which is an additive used in the project area is not sufficiently developed number of applications of flutriafol. So traditional spray operations diminished to meet the requirements for export. the farmers and advisors were keen to damage to the roots of banana plants, have this project set in motion. often seen in the top soil. Disease is the major threat to The Cheminova Brasil team kick- production started the activities by training the use Use of fungicides is vital to the pro- of personal protection equipment which duction in this area and flutriafol is an was also provided free of charge to all excellent tool against the sigatoga. the participating farmers. Bananas in Brazil Fungicides are traditionally sprayed by aeroplane and ground equipment up to Technology and benefit to the Brazil is the second largest banana pro- 15 times during the growth season. For farmers ducer in the world. The production is mainly small-scale farmers this constitutes a By means of the newly developed low- consumed domestically where bananas burden on their economy as well as on cost precision equipment it is easy to constitute a significant part of the diet with the environment. The project in this area apply a very small amount of the flutria- an annual consumption of 30 kg per person. is about improving disease control and fol formulation in the axil of the newly thereby creating prosperity in the farm- formed top leaf of each banana plant. 80% of the banana area is cultivated at low- ing community. Two millilitres per plant is what it takes. tech family farms and it is among some of And the protection is so good that a these farmers Cheminova’s project has been The project is well into the farmer previously applying fungicides 12 initiated in collaboration with the Ministry primary phase times could do with 2-3 targeted axil ap- of Agriculture and the local farmers’ as- The initial phase of the project started in plications during the season – and even sociation. 15

Dr. Rômulo Rodrigues, Gerente ”Cheminova’s fungicide is decisive for the development among de Aquiculturae Pesca, Governo do Estado de Goias (governmen- small-scale banana farmers in the state of Goias because the tal advisor on fungi diseases) product is suitable for use through the new application system meaning effectiveness in the control of the fungi sigatoga.”

Control of fungi diseases in banana plants in Brazil with the new technology The project has three main where a few drips of fungicide are placed objectives in the axil. • To demonstrate the usefulness scale banana producers by of Cheminova’s newly developed, - increasing productivity in the pro- environmentally friendly precision ject area in Goias from 14 to about 20 technology in the management of tons/hectare during a 3-year period. important banana diseases. - improving the quality of the fruit • To introduce this technology into produced. small-scale agriculture in selected - increasing profitability through an areas. improved classification of the ba- • To promote community development nana produce from this project area. by improving quality of life of small- 16 Corporate Social Responsibility Report 2010 Formulation and filling activities

A lot of development work goes into developing the industrial- scale recipes used in the manufacturing of end-use products at Cheminova’s own factories as well as at toll-manufacturers.

Production of finished products - In previous CSR reports we have de- plants in Denmark, India, Germany, formulations scribed how we during the development United Kingdom, Italy and Australia or Like pharmaceuticals, plant protection process are working on optimizing the at external companies - toll formulators products often contain only a limited formulations for instance by using water - often situated close to the markets quantity of the active ingredient. The and vegetable oil instead of unwanted where the products are going to be rest is ancillary materials, fillers and solvents (http://www.cheminova.com/ used. Since the products are diluted solvents. en/csr_/csr-report/). For instance, micro products, it is a financial and environ- capsules and other water-based formula- mental advantage that the formulation Development of formulations tions are often less toxic and more user takes place close to the market. In this The process of transforming the active and environmentally friendly. To this way, transport of large quantities of wa- ingredient into a finished product ready must be added the development work ter, fillers and solvents around the world to be used by the farmer is called the behind making different active ingredi- is avoided. formulation process, and the product ents play together in mixed products. itself is a formulation containing an ac- Two companies making tive ingredient mixed with ancillary ma- Production of finished products Cheminova products terials etc. Considerable development It is also a key element of the work to In the following pages we present two work and much experience lie behind optimize the formulation process itself formulation companies that make ready- the recipe of the finished product. It is to make it applicable in a large-scale to-use Cheminova products for the crucial that the sales products have the industrial production plant. farmers: Our own company in Australia, right properties with regard to stabil- Cheminova’s own production of the which Cheminova acquired in 2008, ity and efficacy and that the environ- active ingredients takes place at the and our long-term partner Proquimur in ment as well as safety and health are factories in Denmark and India while the Uruguay. The articles have been written impacted as little as possible when the active ingredients are further processed by senior members of staff of the two products are used. into finished products either at our own companies.

Audit of formulation companies

Cheminova has prepared an ethical code of conduct for companies sup- plying products and/or services to the group. This includes standards con- cerning environment, safety, health and human resources. Both Chemi- nova’s own formulation companies and toll formulators must comply with this code. Compliance with the code is an integrated part of the quality control of the companies where audit is a control measurement.

Filling of finished products. Corporate Social Responsibility Report 2010 17 Manufacturing at Cheminova’s formulation site in Australia

“The site is by regulatory bodies considered a benchmark for toll manufacturing of crop protection products in Australia.”

By Stephen Poole

Australia is the only nation to occupy Manufacturing at Cheminova Mfg. I am proud to say the site is now an entire continent. Its land mass of Pty. Ltd., Wyong considered by regulatory bodies such nearly 7.7 million km². For its size, Aus- Cheminova Mfg. Pty. Ltd. was formed as the APVMA as the benchmark for tralia has a relatively small population of in November 2008 with the purchase of toll manufacturing of crop products in 22.5 million. Approximately 70% reside the ex-Bayer CropScience manufactur- Australia. The extension of Good Manu- in the 10 largest cities located through- ing plant, located approximately 70 km facturing Practice principles across crop out the coastal regions. From rainforests north of Sydney. protection products as well as for animal and vast plains in the north, snowfields The plant is a toll manufacturing facil- health has demonstrated a clear separa- in the south east, desert in the centre ity primarily providing formulation and tion from our competitors. and fertile croplands in the east, south packing support to Cheminova’s Austra- and south west, every conceivable cli- lian crop protection sales and market- mate is present. Only about 6% of Aus- ing subsidiary Ospray. However, as a tralia is suitable for crops and pasture, a generics toll manufacturer and being in Bradley Rowe, trainee, working considerable amount (60%) of the land a very competitive manufacturing envi- at Cheminova in Wyong since the area is suitable for cattle grazing. ronment, we also offer manufacturing beginning in 2008 options to other customers. The plant Farming in Australia remains viable by sharing the costs of a “I’m employed as a trainee Formulator Australia has become a leading world highly regulated facility across a broad and my day consists of formulating exporter of grains, meats and wool. customer base. and packing chemicals for agricultural Both grains (predominantly wheat and The facility is manned by 30 dedicated products and animal health. Unlike barley) and wool markets around the employees. It is capable of formulating previous chemical companies I’ve world are significantly influenced by traditional crop product ranges such as worked for, Cheminova hold high stand- Australian exports. herbicides, insecticides and fungicides ards towards safety. We have constant The main agricultural crops grown and includes a wettable powder plant. updating of workplace safety and train- in Australia are wheat, coarse grains The facility also formulates and packs ing procedures, and also a strong com- (barley, oats, sorghum, and maize), rice, Animal Health products. mitment to our environment. oilseeds (canola, sunflowers, soybeans, Animal Health manufacturing in With our environment and peanuts), grain legumes (lupins and Australia is a licensed activity under practices of segrega- chick peas), sugarcane, cotton, fruits, Good Manufacturing Practice prin- tion of hazardous and grapes, tobacco, and vegetables. The ciples (GMP), and regulated through non-hazardous wastes main livestock production is in sheep the Australian Pesticide and Veterinary and reuse of recyclable (wool and lamb), beef, pork, poultry, and Medicines Authority. The APVMA is also materials, our goal is dairy products. the federal government statutory body to have a clean safe Farm sizes range from relatively small for the registration of crop protection workplace with minimal part-time farms to operations of more products in Australia. Animal Health impact to nature and than 5,000 hectares. In general, Aus- products are a complementary range of minimizing our tralian farming is characterized by large formulations, having the same or similar carbon foot- scale, highly mechanized and efficient chemistry to some crop protection print”. operations. products. 18 Corporate Social Responsibility Report 2010

The formulation plant in Wyong, Australia.

Environment & CSR Health of employees control practices are part of everyday We aim to ensure fitness for work activities. Comprehensive training is By Kerrie Dixon and that health matters do not impact provided in these areas. We endeavour on safety at the site. In line with this to monitor all aspects associated with In line with our vision we strive to cre- philosophy pre-employment medicals the site’s waste generation life cycle ate a workplace that is injury, illness and are conducted, the site operates as drug and conduct due diligence audits on our incident free with zero harm to people and alcohol free and via our Employee waste contractors. and the environment. For example all Assistance Program, free confidential, new substances arriving at the site are independent counselling access is of- Emergency management risk assessed, we have a comprehen- fered to employees. In addition regular Emergency simulations are part of the sive change management process and occupational health safety and environ- improvement process and a simulated the elimination of hazards is through ment site meetings are held which spill with associated site evacuation engineering or design solutions wher- provides a forum for employees to raise was conducted this year. It was pleas- ever possible. Viewed as fundamental initiatives as well as any concerns that ing to note that site responders acted to achieving our aim of zero harm they may have. with appropriate professionalism. Key to people and the environment, we Due to the seasonality of products take-aways from the exercise were encourage the reporting of incidents, produced at the site, a large proportion discussed during a debrief session fol- actual and potential, as well as any iden- of our workforce is temporary. We work lowing the scenario. tified hazards. closely with our contracting companies to ensure that their approach to human Authorities and business resource management, including em- partners ployee relations is consistent with that At commencement of employment, of Cheminova. personnel are provided with The Code of Business Principles. This is seen as pro- Environment viding transparency and as a beneficial The site maintains ISO 14001 Environ- direction and advice on conducting busi- mental Management System Certifi- ness and interacting with government, cation and it is our practice to meet the community and business partners. or exceed applicable legal and other The ability to built relationships we view requirements, promote efficient use of as critical to our long term success. resources, minimise waste generation, Our suppliers of materials and labour increase recycling and prevent pollution are also vital to our business. We through appropriate disposal of waste. endeavour to support and engage our In line with this philosophy we recycle suppliers in the importance of meeting wherever possible both with plant the corporate social responsibility re- manufacture and office based activities quirements of Cheminova. and correct waste segregation and spill

Kerrie Dixon is working with environment and CSR at Cheminova in Wyong. Corporate Social Responsibility Report 2010 19 Proquimur: A Long term partner in formulation

“All the products are made under strict quality control procedures that cover raw materials, packaging materials, formulation process control as well as quality control of finished products.”

By Alvaro Bazzino

Uruguay is a country in South America like Brazil, Canada and New Zealand. Safety and Environment that borders Brazil to the northeast and Uruguay is a member of Cairns Group of Proquimur counts for all the required Argentina to the west. With an exten- agricultural products exporters. licenses and permits for operating the sion of 176 thousand square kilometres, industrial site and the production. These Uruguay is the second smallest state Proquimur – A Manufacturer of permits include the Industrial and Gen- of South America. Its population counts Formulations to South America eral Permit, the Certificate on Envi-ron- 3.4 million inhabitants; almost half of Proquimur started formulating and com- mental Hygiene Control (CECOHA), the them live in the capital, Montevideo. mercializing plant protection products Certificate from the National Environ- Uruguay is a consolidated democracy. on December 9, 1981. From the begin- mental Bureau (DINAMA), and certifi- It also stands out being among the ning, we have attempted to interpret cates on fire prevention, public health countries with the highest literacy rate the needs of the agricultural sector, and general production permits. Further, of Latin America (97.7% of the total offering solutions that gained rapid ac- the production site is recognized by the population). ceptance. US-EPA, and it has been assigned a After suffering extensive damage in production establishment number. Exports our plant from a tornado in 2002, the All the products are made under As a founding member of Mercosur, company has been reshaped into a strict quality control procedures that Uruguay enjoys optimal export possi- modern industrial plant for safe and ef- cover raw materials, packaging material, bilities to the other member countries: fective production of agrochemicals. formulation process control, as well as Argentina, Brazil, Paraguay, Bolivia and This plant stands in 2,500 square quality control of finished products. Venezuela as well as to the associate meters of buildings located in an area of Proquimur has developed a policy for member states Chile, Colombia, Ecua- six hectares; the facilities are currently sustainable environmental stewardship, dor and Peru. being expanded. Advanced equipment both for production and final products. Uruguay is an agro-exporting coun- such as dispersers, mills and reactors In this sense, the company is very much try, thus products from agriculture: allow Proquimur to formulate a broad aware that the conditions of the envi- rice, wheat, corn, sunflower, sorghum, selection of formulations attending ronment and working environment are barley, soybean and livestock (cattle the demands from farmers in South of high importance to the people and to and sheep) are basic resources of the America. Our products are advanced the wider society. economy. The main industries are the as well as basic formulations such as National regulations include Law No. dairy and derivatives, paper, cardboard, concentrated suspensions, emulsifiable 16.466 (1994), which covers the environ- alcohols, cement and oil refining. concentrates, soluble concentrates, oil mental protection and the prevention in water emulsions, suspoemulsions, of negative environmental impacts, and Farming in Uruguay dry powders and pellets. Law No. 17.283 (2000) which is the new The country lies in the 33oS, 56oW Today, we have the capacity to general law of environmental protec- position, with a warm weather that is formulate 40.000 litres of concentrated tion. These two laws are complemented ideal for farming. Agriculture contributes suspensions and 30.000 litres of emul- by the Packaging Law, and by Decree with approximately 10% of the country sifiable concentrates daily. This capacity 253/79 which dictates the norms to GDP, and it is the main source of foreign of production is projected to increase in prevent water pollution. currency, placing Uruguay in accor- 2011. In accordance with the national dance with other agricultural exporters regulations Proquimur is carrying out 20

a strong solid waste management, by Fiorella Sanguinetti, Quality Control and De- classifying the waste for either recycling velopment, Working in Proquimur since 2004 or shipment for further processing. Our effluent treatment plants and gas “Proquimur has given me the opportunity to know incineration plant both have the autho- an exciting world, the agrochemicals’ world, and has rization from and are controlled by the given me every satisfaction, both professionally and National Environmental Bureau, DINA- personally. We work constantly to optimize the qual- MA. Also, we are part of the important ity of our products and in order to achieve this we environmental programs: have formed an excellent team. • Responsible Care Environmental Pro- The relationship with Cheminova has been essen- gram (ASIQUR-Chamber of Industry). tial in the development of Proquimur because I have • Country Fire Program (CAMAGRO – seen during these years an enormous growth of the Chamber of commerce). company, in infrastructure, in equipment, in quantity of personnel.” The long commercial relation with Cheminova includes a formulation agreement under which we produce and supply formulated products from Uruguay to several Latin American countries. Pablo Deleón, Formulator, working in Proqui- mur since 1998

“In the company we have important safety equipment, we are continuously updating in the management, control and prevention. It is very important to handle products we work with in a responsible way in order to avoid negative impact for us, for society and our environment.” Corporate Social Responsibility Report 2010 21 Sales and product stewardship for plant protection products

With the phase out of the most toxic products in developing countries, an important milestone of Cheminova’s CSR work has been achieved.

Cheminova’s sales in 2010 The active ingredient methyl parathion 3. Membership of national/regional trade Cheminova’s sales of plant protection appears in both class I and class II associations engaged in risk reduction products include supplies of both active formulations, while the ready-to-use in connection with the use of plant ingredients and ready-to-use formula- triazophos-based products all are class protection products, and tions to more than 100 countries. In II formulations exclusively. Cheminova’s 4. Phase-out of all products belonging to 2010, Cheminova’s subsidiaries handled phase-out plan covers class I ready-to- WHO class Ia and Ib outside the USA, 88% of sales. use products in countries outside the Canada, EU, Australia and Japan. For further comments on sales, US, Canada, Australia, Japan and the distribution between product types and EU. In 2010, total sales of class I prod- In 2010, focus on safe use and risk geography, please refer to Auriga’s an- ucts to all countries were reduced to reduction has continued. Training and nual report. appr. 3% of total Cheminova sales. The guidance on correct and safe use of breakdown of products by country can Cheminova’s products is an impor- Sales of the most toxic products be seen in the table below. tant part of the marketing activities in The most toxic products are those developing countries. Labelling and which, according to the WHO clas- Overview of which class I ready-to- instructions for use, personal contact sification (The WHO Recommended use products Cheminova sold in with distributors and users and parti- Classification of Pesticides by Hazard 2010 and where cipation in campaigns are some of the and Guidelines to Classification 2009, Country Product tools employed to promote safety. The published in 2010), fall into class Ia ”ex- quarterly reporting to the CSR steering tremely hazardous” and class Ib ”highly Australia Methyl parathion EC committee on product stewardship from hazardous”. The updated classification Methomyl EC countries and regions that was estab- guidelines have been applied to identify lished in 2009 has continued in 2010. which of Cheminova’s products be- Omethoate EC Twice a year the Global Executive Com- long to WHO class I. No products have USA Methyl parathion EC mittee meets to discuss CSR. Progress moved from or to class I when classified reported from the regions and countries Spain Fenamiphos EC according to the new set of guidelines. as well as guidance for future activities The active ingredients of Cheminova’s Brazil Methyl parathion EC* are on the agenda. 2010 product portfolio which fall into India DDVP EC* In 2010, the safe use of third party the WHO class I are methyl parathion, products sold by Cheminova subsidia- DDVP and triazophos, all of which in *Phased out during 2010 ries has been brought into focus. This 2010 were produced by Cheminova. EC = Emulsion Concentrate has lead to restrictions of sales of a Further fenamiphos and omethoate herbicide in segments dominated by which are third-party products were sold Product stewardship knapsack spraying. by Cheminova in the form of formula- The underlying principle for Cheminova’s The following highlights the risk tions, i.e. ready-to-use products. stewardship of plant protection products reduction activities in the developing is risk reduction. The cornerstones are: countries - Brazil and India - where the WHO classification of pesticides 1. Observance of national legislation last class I products were sold in 2010. based on acute risk concerning approval, marketing and sale of plant protection products in all Brazil Class Ia Extremely hazardous countries where Cheminova’s prod- In Brazil, sales of methyl parathion in Class Ib Highly hazardous ucts are sold. In addition, export is its highly toxic form were limited to five subject to EU legislation and the rules states where the cultivation of soybeans Class II Moderately hazardous of the Rotterdam convention concer- and cotton is dominated by large-scale Class III Slightly hazardous ning ”prior informed consent” (PIC), professional farmers. Sales of this pro- U Unlikely to present acute 2. Affiliation to the rules of FAO’s Code duct were restricted to large packaging hazard of Conduct, (20 litres or larger) that is unattractive 22 Corporate Social Responsibility Report 2010 Salg fordelt på rige Salg fordelt på rige og fattige lande og fattige lande 2010 2009 Sales of plant protection products broken down by 2010 rich and poor countries 2010 Sales broken down by rich and poor coun- High income countries 56% tries according to the World Bank catego- ries of gross national income per capita: Upper middle income countries 33% Low income USD 995 or less p.a., lower middle income USD 996 - 3,945 p.a., higher Lower middle income countries 11% middle income USD 3,946 - 12,195 p.a., high income USD 12,195 or more p.a.). Salg fordelt på rigeLow income countries 0% Salg fordelt på rige Source: World Development Indicators, og fattige lande og fattige lande database World Bank 2010 2009 Sales of plant protection products broken down by 2009 rich and poor countries 2009 Sales broken down by rich and poor coun- High income countries 59% tries according to the World Bank catego- ries of gross national income per capita: Upper middle income countries 33% Low income USD 975 or less p.a., lower middle income USD 976 - 3,855 p.a., higher Lower middle income countries 8% middle income USD 3,856 - 11,905 p.a., high income USD 11,906 or more p.a.). Low income countries 0% Source: World Development Indicators, database World Bank

to small-scale farmers. No cases of in- with training of dealers and farmers va has discontinued sales to distributors toxications related to this product were has been further expanded to cover and farmers in developing countries of reported through the Planitox 24-hours more than 230,000 persons in 2010. the last WHO class I products based on hotline reporting and first aid assistance The programme also includes posters, methyl parathion and DDVP. Cheminova system. video shows, demonstrations and hand has stopped selling these WHO class I In general a series of 155 farmer and out of personal protection kits and first products by the end of the year while customer meetings with all together aid kits. The activities are carried out in the use of the products can continue 11,300 participants were conducted collaboration with local authorities wher- until the stocks of the customers have with focus on safe and correct use of ever possible. This programme is being been depleted. Cheminova’s production plant protection products as well as continued while new CSR activities are of the insecticide DDVP took place in demonstrations of personal protection focused on village projects described on the company’s production facility in equipment. page 12. India. The manufacturing of this mole- These activities are being continued cule was ended in June 2010. Please with Cheminova’s traditional customer Other developing countries see the article on page 10 “Cheminova’s base while new CSR initiatives are fo- In all other developing countries sales phase-out of toxic products has been cused on supporting small-scale banana and marketing was in 2010 accompa- completed”. producers as described on page 14. nied by safe use activities as mentioned Less toxic alternatives: The develop- Cheminova’s subsidiary has continued under the four bullet points above. ment of a WHO class II monocrotophos its partnership in the organisation inpEV These activities are being continued at product by our subsidiary in India has whose purpose is to promote proper the same level or higher despite the been concluded with a satisfactory disposal of used crop protection product completed phase-out of the most toxic result. A new formulation has been containers. The organisation reports a products. In future the attention to developed, which lives up to the WHO 9% increase in the tonnage of contain- avoid misuse or inappropriate product classification, and which has been ers collected in 2010. handling vs. FAO’s Code of Conduct will shown in field tests to have a good be continued. effect on the relevant insect pests. India Approval of the product by the Indian In India, the sale of the last WHO class Follow-up on targets authorities was expected during the first I insecticide DDVP was discontinued at Phase-out of the most toxic substances: half of 2010 but has been delayed. the end of 2010. Cheminova’s phase-out plan has now Generally in 2010 the company has The extensive safe use programme been completed. During 2010 Chemino- had continued focus on introducing new 23

Soybeans grown in Brazil. products none of which are WHO class ries has been uploaded to the Marketing in several Indian villages have been suc- I. More information on page 10 (Phase- Portal. Although completed at this point, cessfully launched and further informa- out of WHO class I products - Phase-out uploading of material regarding safe use tion can be found in the article on page plan completed) and in Auriga’s annual will be an ongoing process and the CSR 12. report. folder will be updated correspondingly. Activities among small-scale banana Labels: A global labelling policy for Production of a modular DVD with producers in Brazil: This project was products marketed under Cheminova safety instructions: The work was initi- intiated already in April 2010 although trademarks was prepared and adopted ated in 2009, inspired by existing mater- originally planned to be set in motion by at the end of 2008. The policy is now a ial from the subsidiaries in India and the start of 2011. part of Cheminova’s quality control and Brazil as well as from the EU-supported Together with education and training CSR management system and, as such, project “TOPPS”. With the assistance in safe use, the new application technol- included in the “Global QC and CSR Ma- of the local subsidiary, a film showing ogy has been introduced and come into nual”. Implementation and introduction the safe-use of knapsack sprayers was use by the farmers. See the article on was completed in 2010. recorded in Mexico in September 2010. page 14. FAO’s Code of Conduct in Contracts: The film, which is without subtitles and During 2009 and 2010 all direct custom- therefore useable in several languages, ers holding registrations on behalf of is available on DVD in its full length as Cheminova A/S have been contacted well as in four short films on various and requested to sign and return a subjects (a. Transportation and Storage, contract addendum, thereby accepting Personal Protection Equipment, Data to comply with the obligations stated recording, b. Preparation of spraying, in FAO’s Code of Conduct. 60 signed c. Spraying and cleaning of equipment, documents have been returned - four d. Handling of spillage, Disposal of agreements are in process. In future, packaging, Data recording). The DVD FAO’s Code of Conduct will be an contains safe-use instructions of a more integrated part of Cheminova’s general general character as well. The safe-use trade conditions. film is uploaded to the Marketing Portal Access to safe-use material: All and to the Cheminova homepage. relevant historical and current material Activities in Indian villages: The CSR- from HQ as well as from the subsidia- projects covering a variety of activities 24 Corporate Social Responsibility Report 2010 Development

We have continuous focus on developing products with improved environmental characteristics and which offer the same or better efficacy despite reducing the volume of active ingredient used.

An overall purpose behind the develop- application in public health particularly ment of new sales products, formu- for control of mosquitoes have been lations, is to develop products with initiated. improved environmental properties. For a number of Cheminova’s plant Improvement of environmental prop- protection products, an experimental erties is sought by using formulation work with improving the effect per gram chemicals, ancillary products, with an at- applied product has been initiated in tractive environmental profile giving the 2010. The work has especially focused plant protection products the desired on fungicides. If an increased effect per properties. Further, new formulation gram plant protection product can be technology has been developed and ap- achieved it will be possible to reduce plied leading to improved products. the environmental impact as a reduced Reduction of drift and evaporation of quantity of product will be required to plant protection products during or after obtain the desired effect. application to crops has been a focus In 2010, Cheminova has supported an area in 2010. A herbicide formulation international research group with asso- and innovation, the company has in with significantly reduced drift com- ciation to several European universities 2010 published a magazine ”Growth pared to conventional products has been and institutions. The project of the group through innovation and sustainable brought to market and a patent applica- is about investigating the possibilities of development” which can also be read tion on reduction of evaporation from reducing mortality after suicide attempts on Cheminova’s website. formulations has been published. with insecticides. The results of the Improvement of two of Cheminova’s scientific research are expected to be insecticide formulations has been published in scientific journals. accomplished in 2010, and studies As general information about Chemi- concerning these products’ possible nova’s strategic focus on development Test of new formulations for Danish plant production. Corporate Social Responsibility Report 2010 25 Production

We are constantly working on improving environment, health and safety at all production sites.

Data on environment, health and safety for these companies appear from the table on the next page. About 2/3 of the activities take place at the company in Denmark and about 1/5 at the company in India. All producing companies are included in the statements for 2009 and 2010. The statements for the previous years only included the companies in Denmark and India. According to the below article, the production plant in India has in 2010 focused on odour control. Detailed information for the other companies included in the statement can be found on www.cheminova.com. The applied accounting policies can be found on page 50. 94% of electricity consumption, 72.6 The Cheminova group owns the following GWh, lies in Denmark and India. The production companies: main part of this electricity, 72.5 GWh, Name Production Country Location is produced with natural gas as primary energy source, the remainder is pro- Cheminova A/S Chemical synthesis, Denmark Rønland, Lemvig duced with oil as primary energy formulation and filling source. The significant emissions of treated Cheminova India Ltd. Chemical synthesis, India Panoli north of waste water take place from the pro- formulation and filling Mumbai duction plants in Denmark and India where it is lead to the North Sea and Stähler Deutschland Formulation and filling Germany Stade west of Gulf of Khambhat, respectively. GmbH & Co. KG Hamburg On Cheminova’s factory site in Denmark is a waste deposit containing sulphur, sand and concrete conta- Stähler, Althaller Formulation and filling Italy San Colombano minated with low concentrations of south of Milan organophosphorous chemicals and mercury. The deposit is confined and Headland Formulation and filling United Deeside, North does not constitute any danger to the Agrochemicals Ltd. Kingdom Wales surroundings. In 2010, Cheminova has entered into an agreement with the Danish Environmental Protection Cheminova Mfg. Formulation and filling Australa Wyong north of Agency to dismantle the deposit over Pty. Ltd. Sydney a period of time. The first step of this agreement is to conduct a preliminary 26 Corporate Social Responsibility Report 2010

Production, continued

and in the other companies by appr. Fact box: Environment, health and safety 30%. As the production in Denmark is Unit Note 2010 2009 2008 by far the largest, it has resulted in es- Water consumption: sential changes of the reported figures. Cooling Million m3 34 46 50· The pollution potential from formulation Processes and ordi- and filling is far less than by chemical Thousand m3 821 885 971 nary consumption synthesis. Energy consumption: Note 1: The consumption of fuel oil Natural gas GWh 385 447 490 in India decreased as more natural gas Electricity GWh 76.9 79.9 86.7 was available compared to 2009. Fuel oil GWh 1 1. 8 16.3 13.7 Note 2: The measuring of COD is Materials: subject to great uncertainty when Raw material con- Thousand tonnes 116 137 157 water with a high content of chloride is sumption analyzed as is the case in Denmark. The Discharge of waste water: figures for 2008 and 2009 have been ad- COD Tonnes 2 300 200 200 justed in order to reflect this uncertainty. Nitrogen Tonnes 16 19 23 The increase is not supposed to be es- Phosphorus Tonnes 9 11 25 sential. In spite of the great uncertainty Air emissions: of measurements, the COD emission is so low that it does not represent an SO2 Tonnes 3 12 22 15 Particles Tonnes 5.2 5.5 6.7 environmental problem. Note 3: About 90% of the SO emis- CO2 Thousand tonnes 4 80 106 123 2 sion takes place from the factory in Ordinary waste: Denmark where the reduction has been Recycling Thousand tonnes 3.3 3.3 3.8 at the company’s air incineration plant. Incineration Thousand tonnes 0.47 1. 11 0.99 The reason is a combination of lower Depositing Thousand tonnes 5 21.1 34.2 34.5 production, shorter operation time and Hazardous waste: fluctuations in the high efficiency. Recycling Tonnes 6 145 486 0 Note 4: Changes of the CO2 emis- Incineration Thousand tonnes 7 6.8 14.4 11. 6 sion is predominantly due to changes Depositing Thousand tonnes 2.39 2.44 1.26 of the produced quantities. By mistake, Spillage and waste Number 8 30 35 37 the CO2 emission in Germany has not Accidents Number 9 34 15 24 previously been included - it counts for Accident frequency 9 7. 3 3.5 - less than 1% of the emission. Absende from work 9 3.0 3.1 - Note 5: The massive fall in production due to accidents in Denmark resulted in a considerable reduction of the quantity of sludge from the company’s biological treatment examination within one to two years climate, ground, material goods, cultural plant. of how best to do this. Based on this heritage and the correlation between Note 6: The quantity of hazardous investigation we expect to establish a these factors. waste for recycling depends on which dismantling approach and a timeline. Based on the EIA-assessment, the products are manufactured and there- relevant authorities concluded that it fore it fluctuates from year to year. Production sites bordering on is possible to add an addendum to the Note 7: The fall is mainly due to the protected natural resorts local municipal plan making a continued fact that production of glyphosate in The production site in Denmark is development of Cheminova’s produc- Denmark has been reduced significantly. situated on a 1.3 km2 large peninsula tion at Rønland possible [http://che- Note 8: Half of the number of spillage called Rønland. About half the area minova.aar.mim.dk/miljogodkendelse/ and waste took place in Denmark where is utilized. Rønland is surrounded by Miljogodkendelser.asp?kapitelid=38&afs the number of incidents has doubled. natural resorts. A great part of Harboøre nitid=364&dato=11-03-2011&searchtype Both in India and in Australia, there has Tange and areas of Nissum Bredning =3&Fritekst=vvm#Bookmark0]. been much focus on the area and in are designated as Ramsar area and EU both places the number has been redu- bird protection area. Further, part of the Comments on the development ced to one third compared to 2009. area is protected and laid out as game from 2009 to 2010 Note 9: The number of accidents at reserve. At the beginning of 2010, the The development from 2009 to 2010 is work in Denmark has risen significan- working out of an EIA-assessment for characterized by the fact that the pro- tly. Few of these accidents - all related Cheminova was finished. It describes duction in Denmark has been reduced to the severe winter with much snow the factory’s direct and indirect effect by appr. 25% while in India the produc- and ice at the beginning of 2010 - lead on human, fauna, flora, soil, water, air, tion has been increased by appr. 15% to very long absences. In a few of the Corporate Social Responsibility Report 2010 27

By Mehernosh M. Behramkamdin, Technical Director, Cheminova India Ltd.

Ozone system for odour odorous products could be a discomfort troduced elsewhere successfully. control to the community around the manufac- We employed the same method Cheminova India strives for turing unit. In our sustained efforts to in Cheminova in 2010 to minimize continuous improvement in the minimize the odour we have proactively smell from the production. Ozone manufacturing front to strengthen designed the ozone system to minimize is increasingly used in the western its commitment to a cleaner en- the same. The testimony for the suc- world for similar purification in the air vironment. The ozone system for cess of this process was evident from conditioning of hotels and the water odour management is an innova- the appreciation that we have received treatment of swimming pools. tive solution in this direction. from the Gujarat Pollution Control Board. See the whole article ”Ozone The nature of one of the products Two inspections have been done by the system for Odour Control by Me- manufactured at Cheminova India’s Board for approving the process which hernosh M. Behramkamdin Chemi- Panoli plant for our domestic con- is likely to be completed in 2011. nova India Ltd. on our homepage sumption and for meeting our global www.cheminova.com. requirements is such that the emis- Innovation sions from the drying operation of This was the process that I had in-

other companies the absenteeism Denmark absenteeism was reduced to 3.5% in has been significant, too. In Denmark, Maintain the ISO 14001 and OHSAS 2010. the method of making up performed 18001 certification: Certification main- working hours has been changed which tained. External audit accomplished in United Kingdom has resulted in changed numbers for ac- August with one deviation which has The ergonomic strain on employees and cidents and absence from work for 2009 been closed. the exposure to dust to be reduced in compared to the report for 2009. Energy consumption per produced 2010: A new installation for handling of volume glyphosate to be reduced at big-bags came into operation thus caus- Follow-up on targets for 2010 the end of 2010 by 5% compared to ing fewer heavy lifts and less dust. In the following, the targets are stated 2008: Based on changed conditions with the degree to which they have of the glyphosate production, reduced been fulfilled. production and external purchase of an Limy treated waste water is tested before intermediate instead of own production it leaves the factory in India and is pumped India of this, the project of reduction has not to the central treatment plant of the area. Completion of ISO 14001 & OHSAS been accomplished. 18001 certification for Technical Division Implementation of campaigns to not later than in the middle of 2011: improve the safety culture with the The plan is followed, and certification is primary aim of further reducing the expected to be completed in the middle number of accidents at work: The plan- of 2011 as planned. ned campaigns have been accomplished Reduction of the energy consumption but in spite of this, absenteeism due to by 3% at Technical Division in 2010: accidents at work has risen consider- Energy consumption was reduced by ably, the majority of which was related 14.9% compared to 2009. to the unusual icy conditions in winter. Reduction of water consumption by Ensure a well functioning emergency 5% at Technical Division in 2010: Water preparedness for action on serious ac- consumption was reduced by 14.4% cidents through arranging a large scale compared to 2009. exercise involving the public prepared- COD emission with the waste water ness during the first half of 2010: A large to be reduced by 10% in 2010: COD scale exercise was arranged in April and emission was reduced by 14.1% compa- evaluated in May. Conclusion: No need red to 2009. for essential changes to Cheminova’s Reduction of absenteeism due to emergency preparedness. accidents at work in 2010: Absenteeism due to accidents at work was reduced Germany from 4.6 to 1.6 lost man-hours per 1000 Absenteeism to be reduced in 2010 man-hours. to less than 4%: The 28 Corporate Social Responsibility Report 2010 REACH - New EU chemicals regulation

The challenge of incorporating a complex body of laws into Cheminova’s routines and achieving the necessary registrations of chemicals which are not plant protection products has proven successful.

The REACH group at work. The group consists of Kirsten Kjær, Manager, Environment & Chemicals, Dorte Schmieg Toft, Chemical Engineer, Bjarke Kynde, Chemical Expert and Lene Lundhus, REACH Coordinator.

our way to the first deadline on Novem- ber 30, 2010. The task was further complicated and prolonged because of flaws and defi- ciencies on the part of the authorities, among other things IT technical errors, missing practical guidelines and missing technical control tools.

Follow-up on targets for 2010 Registration of the pre-registered substances which must be registered before the end of 2010: The target for 2010 was to register the substances produced in or imported into the EU in quantities of more than 1,000 tonnes per year. In addition to that, the target was to register particularly hazard- ous substances (endocrine disrupting, carcinogenic or hazardous to the genes) imported in quantities of more than one A comprehensive and complex set of understand what the regulation meant tonne per year, and finally, to register rules and regulations had to be incorpo- to Cheminova, subsequently to become substances which would currently be of rated into Cheminova’s working routines acquainted with the different IT tools to relevance to Cheminova and therefore when the REACH regulation came into be used for registration of the chem- had to be registered immediately. force on June 1, 2007. The purpose of icals. On November 30, 2010 Cheminova the regulation is systematically to collect It has been a pioneer work as it was had attained its end as all pertinent information about the chemicals that quite a new way to coordinate data on substances had been registered. In that surround us in our daily work and con- chemicals in the EU. way, Cheminova A/S has registered nine tinuously have it communicated to the This resulted partly in a substantial transported intermediates, five isolated companies handling these chemicals. exchange of information and partly in intermediates, four substances and one We have worked on the task for about numerous changes of how and what particularly hazardous substance. A total five years. At first, the challenge was to information/data we had to submit on of 19 substances. Corporate Social Responsibility Report 2010 29 Supplier management

A thorough CSR evaluation is made of Cheminova’s potential new suppliers of chemical products.

Dennis Dias, Senior Vice President, Marketing, Distribution and Materials Procurement, Cheminova India Ltd.

Suppliers assurance in India In Cheminova India, the programme business practices will impact, di- Suppliers play an important part commenced in 2009, during which we rectly or indirectly, on our brands and in our CSR initiatives. We expect have covered all the suppliers by making reputation. Therefore it is imperative our suppliers to do business in a them aware of our Code of Conduct and that we ensure that these suppliers socially responsible manner. With also making them do their Self Assess- embrace and adhere to our code of the experience gained in 2010, ment. Further, we initiated trial audits for conduct principles. we are now in a better position selected suppliers. In 2010, Cheminova See the whole article ”Suppliers to improve supplier audits with India has conducted nine official audits, assurance in India” by Dennis Dias, mutual gains for Cheminova and covering some of the important suppli- Senior Vice President, Marketing, our suppliers. ers of raw material and packing mater- Distribution and Materials Procure- From the Global QC & CSR ials across three division viz., Technical, ment, Cheminova India Ltd on our Manual our tools consist of: Intermediates and Formulations. homepage www.cheminova.com. • Code of Conduct for suppliers We expect our suppliers to be com- • Supplier Self Assessment pliant to basic CSR norms. While the • Audit of the suppliers suppliers are independent entities, their

Cheminova’s supplier management we have a large number of suppliers in suppliers because of non-compliance is rooted in the “Global QC and CSR this country. Therefore supplier manage- with our ”Supplier Code of Conduct”. Manual” cf. the section “Management ment is particularly important here. It The discontinuation of the cooperation access to CSR management” on page is managed by our Indian subsidiary cf. with the Chinese supplier took place 34. Today, the supplier management the above article “Suppliers assurance after the company at an audit had been is fully integrated in the daily work in in India”. instructed within a time-limit to carry out the primary countries for sourcing of improvements in relation to some condi- chemicals, India and China. Audit of Follow-up on targets for 2010 tions which were unacceptable accord- the companies is an essential factor of Conduct 10 official CSR audit visits ing to our Supplier Code of Conduct. As the supplier management which partly to suppliers in 2010: In 2010, we have the conditions had not been improved a includes existing suppliers but increas- conducted 19 audits of suppliers - 14 new subsequent audit 10 months later ingly is focused on selection of new companies producing chemicals, four lead to discontinuation of the coopera- suppliers. Today, a thorough CSR evalu- formulation and filling companies and tion even though this means a negative ation is made of potential new suppliers one supplier of packaging. In addition, financial effect on Cheminova. so that we in advance choose suppliers we have conducted 20 screenings of Complete the introduction of Chemi- who we expect will be able to comply potential new suppliers. We have nova’s ”Global QC and CSR Manual” with our ”Supplier Code of Conduct” audited companies in China, India, Mexi- in all subsidiaries in 2010: Introduction both now and in the future. co, Uruguay, Argentina and the USA. completed according to the section In India, we have our own produc- Audits of the existing suppliers have ”Management access to CSR manage- tion of chemical substances for plant triggered that we have discontinued our ment” on page 34. protection as well as formulation and cooperation with one Chinese company filling of such products. Consequently, and dropped several potentially new 30 Corporate Social Responsibility Report 2010 Human Resources

Based on Cheminova’s mission, vision and values, a strong company culture and identity is developed which can support the commercial goals.

Growth and sustainability our values. The objective of the survey, Support to the project ”High-Five” In 2008, Cheminova’s mission and vi- which was made by an external contrac- In the Danish organisation we have in sion were revised and we formulated tor, was to identify areas for improve- 2010 joined the project ”High-Five”. The the five values we want as guidelines ment. project was initiated by The National for the behaviour in our organisation. The survey was carried out as an Network of Senior Executives on the Through a long series of workshops in anonymous questionnaire among the initiative of the former Police Commis- all subsidiaries, we started to imple- employees of the global organisa- sioner in Denmark and the Minister for ment the mission, vision and values in tion. The percentage of answers was Employment. The patron of the project our organisation. The purpose was to satisfactory as 76% of the employees is His Royal Highness Prince Joachim. involve all employees in the process and in Denmark and 70% of the employees The project is financed by pool funds to ensure that the mission, vision and abroad responded. through the Ministry of Employment. values made sense to the individual ir- The goal of the project is to strengthen respective of background, job and tasks. Main results the companies’ social responsibility by To implement such a revised foundation The part of the survey that concerns ensuring jobs and training possibilities of the company and not least guidelines Cheminova’s five values showed the for people who would otherwise be on behaviour is a comprehensive and following results: in risk of marginalization because of long process. A process that demands High degree of knowledge and ac- delinquency. constant focus, various activities and ceptance among the employees plenty of time. The values are seen as positive. There The whistleblower function has As it appears from below we will is, however, often some uncertainty been revised continue the activities to ensure that the about how the management in the As part of ensuring compliance with our values play out in the normal daily life. lower levels of the organisation wants Code of Business Principles a whistle- Only in doing so can we ensure the con- the values to be put into practice in rela- blower function was established at the tinuous build-up of a strong corporate tion to the specific tasks of work. There same time as the Business Principles culture and identity which can support is a need for making the role of the were defined and communicated. the commercial targets. A behaviour and individual clear in relation to which be- Through the whistleblower function a mindset which in everything we do haviour is to be encouraged or reduced the employees can report if they have can ensure the desired growth and sus- in order to make the values live stronger learned of or have reason to suspect a tainability also in the future. Further, this in the normal daily life. breach of our Code of Business Prin- will contribute to branding the company As regards the Business Plan there is ciples. The function was based upon among our stakeholders. a great knowledge and a strong com- complaints being made to a person in mitment in contributing to realising the Cheminova’s organisation and through Employee survey achievement of the goals. The areas of this channel a number of cases have In continuation of the global roll-out of improvement especially concern the been handled. But experience has Cheminova’s values, in September 2010 correlation between the company goals shown that the internal process was a we made an employee survey in the and the specific tasks of the individual weak point that could create insecurity organisation concerning the anchoring of employee. as regards ensuring the anonymity of our Business Plan ”Five-in-Fifteen” and the whistleblower. Corporate Social Responsibility Report 2010 31

Roll-out of mission, vision and Mission values in Colombia - working in groups We help improve quality of life for the world’s population by supplying products that help farm- ers increase yields and quality of crops to satisfy the global demand for food, feed, fiber and energy.

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

Values We achieve ambitious goals We are innovative We decide and we act We recognize results We are good corporate citizens

In order to remedy this weakness of the Lemvig, Attn.: the company chose to upgrade the em- whistleblower function, an arrangement Vice President, SHE & QA, Christian ployees’ level of education with profes- was made in 2010 with an external Bastholm, christian.bastholm@chemi- sionally relevant courses. This solution solicitor independent of Cheminova. nova.com or has been very satisfactory both for the This arrangement constitutes an exten- Vice President, Corporate Communi- employees and for the management. sion and improvement of the existing cation, Lars-Erik Kruse Pedersen, lars- function. It is in everybody’s interest [email protected] or Follow-up on targets and it is of decisive importance that our Vice President, Human Resources, In 2010 our colleagues in Hungary, Code of Business Principles is complied Ole Zinck, [email protected]. Colombia and Germany will be invited with. We want to ensure this by making The new function was launched in the to participate in one-day workshops to it possible that any violation of the code entire organisation at the beginning of work with Cheminova’s mission, vision can be safely communicated through 2 011. and values: The roll-out has been ac- the whistleblower function. Anybody complished in Hungary and Colombia can inform about any violation in confi- New global profit-sharing while the process in the subsidiary dence without the risk of any negative scheme Stähler’s organisation, including Ger- consequences for the whistleblower. At the board meeting on December many, will be accomplished in 2011. The arrangement came into force on 14, 2010 the Board of Directors agreed Compile the conclusions from the February 1, 2011 and from this time on upon a new profit-sharing scheme roll-out in 2009-10 of mission, vision information can be provided to Whistle- which will be implemented in the global and values into a booklet on Chemi- blow.me. From here the information will Cheminova group. The profit-sharing nova’s values that will be used in future anonymously be sent on to the Whistle- scheme will in future be based on the communication on values: A detailed blower Committee in Cheminova who operating income less cost of capi- plan of activities meant to firmly anchor- will subsequently discuss and act on tal, both globally and in the individual ing Cheminova’s mission, vision and the issue. subsidiary. values in the organisation was decided Information of violations can be in 2010. The work is to be finalized dur- provided by e-mail or regular mail to the Extraordinary training ing 2011. following addresses: activities Update the Code of Business Prin- [email protected] and the postal About 200 operators and workmen at ciples based on the experience gained address: mediationcenter a/s, Strand- Cheminova’s factory in Denmark have from the roll-out of mission, vision and vejen 203, DK-2900 Hellerup, Attn. participated in an extensive programme values in 2009-10: The Code of Busi- Tina Monberg or Pia Justesen. Further of self-elected and compulsory courses. ness Principles has been changed as information about Whistleblow.me can Towards the end of the year a tempo- regards the whistleblower function. be found on the website www.whistle- rary stop of production was affected Make the policy on anti-corruption blow.me. with the purpose of lowering the tying- more specific: A specific anti-corruption Information can also be provided up of capital in unnecessarily large policy has been made, adopted and directly to Cheminova’s Whistleblower stocks. Such a situation would normally communicated to the management Committee by regular mail or e-mail to result in dismissals but production was (see also “CSR targets for 2011 and the following addresses: expected to be fully resumed at the be- beyond” on page 8). Cheminova A/S, P.O. Box 9, DK-7620 ginning of the new year and therefore 32 Corporate Social Responsibility Report 2010 Action plan

Product Stewardship

Focus area Target/activity Timetable Success criteria FAO’s Code of To be included as part of the general sales conditions. 2011 Implemented in all regions and in India. Conduct Compliance with FAO’s Code of Conduct will be an integrated part of Cheminova’s standard contract with direct cus- Cheminova’s general trade conditions tomers contains direct reference to FAO’s Code of Conduct Marketing Portal Further country/market specific improvement/adjustment of the 2011 Country/market specific safe-use material (films present safe-use film and other material) ready and available for use on DVD and/or by downloading from the Marketing Portal

Village projects

Focus area Target/activity Timetable Success criteria India The projects in the 9 selected villages will be continued 2012 The projects are continued with implementation of adjustments based on the experience gained Impact assessments and implementation of specific improvements 2011 Assessments carried out and key improvement identified will be undertaken in two villages criteria identified and documented The project “Aakash Ganga” on water conservation will be initiated 2011 Projects initiated by June 2011 in 5 villages.

The project “Saheli” on women empowerment on safety, health and 2011 Projects initiated by June 2011 livelihood will be initiated in 4 villages. Brazil The project among small-scale banana farmers in the state of Goias 2012 Project keeps momentum, and focus on quality of will be continued. the crop is established A new project on community development, safe and environmental- 2011 Project initiated by May 2011 ly friendly disease management of the banana crop will be launched among small-scale banana farmers in the state of Sao Paulo in 2011.

Production

Focus area Target/activity Timetable Success criteria India The environmental management system of the production at the June 30, 2011 Confirmation of certification received from the Technical Division will be certified in relation to ISO 14001 and certifying company OHSAS 18001 Reduction of the energy consumption at the Technical Division by 2011 Energy consumption in 2011 reduced by at least 3% per produced volume 3% compared to 2010 given an unchanged product mix Reduction of water consumption at the Technical Division by 5% per 2011 Water consumption in 2011 reduced by 5% com- produced volume pared to 2010 given an unchanged product mix. Reduction of the COD emission from the Technical Division and the 2011 COD emission in 2011 reduced by at least 5% intermediate plant by 5% per produced volume compared to 2010.. compared to 2010 given an unchanged product mix. Denmark Certifying of the company’s environmental management system in 2011 Activities in Denmark still certified at the end of relation to ISO 14001 and OHSAS 18001 is maintained the year

Continuous optimization of energy consumption through retention of 2011 Energy management system still certified at the the certified energy management system according to DS/EN 16001 end of the year. and compliance of the Danish Energy Agency’s demands on energy Completion of energy optimization can be docu- management according to DS/EN 16001 mented Education and training of the employees’ attitude and behaviour in 2011 Education and training accomplished for the health order to achieve fewer accidents and errors and safety organisation, and programmes for modification of attitudes and behaviour imple- mented Corporate Social Responsibility Report 2010 33

Focus area Target/activity Timetable Success criteria Australia Reduction of absenteeism due to accidents 2011 Absenteeism due to accidents in 2011 has been reduced compared to 2010 Environmental certification according to ISO 14001 is maintained 2011 Activities in Australia are still certified at the end of the year Obtain a more safe behaviour among the employees. The policy is 1st half 2011 Documentation that all permanently employed updated and training programmes for all permanently employed are have participated accomplished Quantity of waste for recycling to be increased by 5% 2011 Quantity of waste for recycling increased by 5% compared to 2010

REACH - New EU chemicals regulation

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

Supplier management

Focus area Target/activity Timetable Success criteria Global organisation In each of Cheminova’s regions the supplier management will be 2011 Persons have been selected and trained for the rooted with a person with a technical background task

Human Resources

Focus area Target/activity Timetable Success criteria Whistleblowing Spread the knowledge of the whistleblower function to all 2011 Code of Business Principles with description of employees of the global organisation the new whistleblower function has been spread to all employees of the global organisation. Information on the intranet, in the group’s internal newsletter and in an article in Cheminova Bladet Mission, vision and Maintain the knowledge of the company’s mission, vision and values 2011 Leaflet about mission, vision and values with values among the employees of the global organisation and ensure that the examples of how the values function and manifest values ‘live’ in the daily life themselves in the specific daily life available in at least 2 languages Anti-corruption Communication of the company’s anti-corruption policy will be 2011 The subsidiaries are identified. Programme for accomplished in selected subsidiaries communication has been determined and accom- plishment can be documented 34 Corporate Social Responsibility Report 2010 Management access to CSR management

Cheminova’s business principles are supported by a global quality control and CSR manual which gives specific directions for the daily work.

Cheminova’s management of CSR is contaminated by another in the finished • Human rights* built on a ”Global QC and CSR Manual”. products which are delivered to the end- • Labour* The manual includes relevant policies, a users. Another essential aspect of the number of procedures describing how quality policy is proper labelling of the * Prepared and approved in 2010. Train- to translate the policies into specific ac- products including use of pictograms ing at management level accomplished tion and some documents which can be in developing countries. In this relation in the entire organisation. used to assist the current daily quality the policy refers to FAO’s guidelines on control and CSR work. good labelling practice of pesticides. Documents These documents include standard Policies Procedures documents as a help to carry out the The manual includes the following poli- In order to translate the general policies specific tasks. As an example can be cies: into practical action in a number of key mentioned different documents for car- • Code of Business Principles (page 48) areas, procedures have been prepared rying out QC and CSR audits. Further, a • Responsible Care (page 46) with the following structure: A well- few general instructions as for instance • Supplier Code of Conduct (page 49) defined specific purpose, demand for FAO’s ”Good Labelling Practice for Pesti- • Product Quality Policy specificaction, definition of the organ- cides” have been included. • United Nations Global Compact (page isational responsibility for these actions 44) and (where relevant) requirements for Implementation in the documentation. organisation In addition to policies concerning own The following procedures relevant to The manual is the management’s ac- production, the policy “Supplier Code CSR have been prepared: cess to CSR management in relation to of Conduct” based on Cheminova’s • Own production of technical products environmental and social relationships. Code of Business Principles and United • Own formulation and filling Social relationships include the subjects Nation’s Global Compact defines several • Toll production and purchase of techni- labour, human rights, community and requirements for Cheminova’s suppliers cal compounds product responsibility, cf. the enclosure concerning “Human Rights”, “Labour • Toll formulation and toll filling GRI Reporting 2010. Standards”, “Environment” and “Anti- • CSR management of suppliers and toll The manual has been implemented corruption”. The fundamental principles producers in the organisation in 2009/10. It is also of this Supplier Code of Conduct appear • Prevention of cross contamination available in internet versions on the Mar- from page 49. • Labelling keting Portal. Cheminova’s global Safety, The policy “Product Quality Policy” fo- • Safety Data Sheets Health, Environment & Quality Depart- cuses among other things on prevention • CSR indicators. Structure for book- ment has the editorial responsibility for of cross contamination, which ensures keeping instructions the manual. that one plant protection product is not • Anti-corruption* Corporate Social Responsibility Report 2010 35 Management statement

Kurt Pedersen Kaalund Rico T. Christensen Mats Edh Jaime Gomez-Arnau President & CEO President, President, President, Region North America Region International Region Europe

Niels Morten Hjort Jesper Barslund Jacobsen Jacob Johansen Cesar Rojas Senior Vice President, Senior Vice President, Vice President, President, Production & Logistics Finance & Support Corporate Development Region Latin America

As per March 10, 2011, the company’s top management, the Global Executive Committee (GEC), considered and approved the CSR report for 2010. GEC has the overall responsibility for Cheminova’s subsidiaries and regions as well as all the company’s other activities, including CSR. It is the GEC’s view that the CSR report for 2010 pro- Allan Skov Jens Thorsen vides an accurate picture of the company’s CSR activities Senior Vice President, Vice President, in the areas described. Development & Registration Portfolio Management 36 Corporate Social Responsibility Report 2010 Assurance statement

Assurance Statement for Chemi- Our responsibility is, on the basis of been assessed from inquiries concern- nova A/S’s stakeholders from our work, to express a conclusion on the ing procedures for calculation and independent auditor information contained in the CSR Report measurement of the concrete data. We have assessed Cheminova A/S’s regarding goal attainment and financial Furthermore, we have performed techni- 2010 CSR Report for the purpose of data as well as on the Report as a COP cal accounting analyses of reported data expressing a conclusion on the descrip- Report. and have reviewed selected documenta- tions of goal attainment and non- tion. financial data contained in the Report as Scope of our work We have reviewed the Report with a well as its capacity as Communication We planned and performed our work view to assessing its informative value of Progress Report (COP Report) oc- in accordance with the International in relation to expectations for a first- casioned by Cheminova A/S’s affiliation Auditing Standard ISAE 3000 (assur- year COP Report. Through interviews with the UN Global Compact. ance engagements other than audits or with Management and selected key review of historical financial information) employees, we have gained insight into Criteria applied for the purpose of obtaining moderate Management’s commitment and status The criteria for CSR-related goal at- assurance that of embedding of the UN Global Com- tainment are stated in the 2009 CSR • the status of attainment of estab- pact and Cheminova A/S’s values with Report, in which goals as well as suc- lished CSR goals for 2010 on pages relating specific activities. cess criteria for the focus areas, Product 6-7 and of the phasing out of Class I We have noted the strategic manage- Stewardship, Production, EU’s New products on page 11 is in accordance ment level of ambition and have on a Chemical Policy, Supplier Management with the listed criteria for CSR goals, sample basis tested the existence of and Human Resources, are presented. which were published in the 2009 local management awareness. Moreover, in its 2007 CSR Report, CSR Report; As agreed with Cheminova A/S Man- Cheminova A/S published criteria for • the environmental and occupational agement, we have not performed any phase-out targets relating to Class I health and safety data stated on procedures relating to the reliability of products as regards product types, page 26 have been recognised in ac- the GRI reporting for 2010. years and geographical areas. cordance with the criteria stated for The criteria for preparation of financial preparation of the non-financial data Conclusion data contained in the CSR Report are of the CSR Report; Based on our review, nothing has come evident from the accounting policies • the CSR Report in its entirety is to our attention that causes us to be- described on pages 50-51. These contain consistent with the Company’s CSR lieve that the descriptions covering the information concerning which of the activities and progress with a view to status of the attainment of CSR goals Group’s businesses and activities are supporting the UN Global Compact. for 2010 on pages 6-7 and of phasing included in the types of data reported as out of Class I products on page 11 are well as Management’s reasons for se- The assurance obtained is moderate as not accurate. lecting environmental and occupational compared to that of an audit. Our work Furthermore, nothing has come to health and safety data. has therefore, based on an assessment our attention that causes us to believe of materiality and risk, primarily included that the environmental and occupa- Responsibilities inquiries concerning goal attainment, tional health and safety data stated on Cheminova A/S Management is respon- including on a judgemental sample-basis page 26 have not been recognised in sible for preparing the CSR Report, obtaining documented confirmations accordance with the criteria stated for including for setting up registration and regarding goal attainment from local preparation of the non-financial data of internal control systems with a view to managements, interviews with selected the CSR Report. ensuring reliable reporting. Company key managerial employees responsible We confirm that the CSR Report is Management is furthermore respon- for the goal attainment and review of Cheminova A/S’s first COP Report, and sible for specifying acceptable reporting selected documentation. based on the total work performed, criteria as well as selecting data to be Moreover, our interviews included nothing has come to our attention collected. the production companies in India and that causes us to believe that the CSR Moreover, Cheminova A/S Manage- Denmark, and we paid visits to the sales Report in its entirety is not based on ment is responsible for preparing a companies in India and Mexico. specific activities and thus Cheminova COP Report presenting Cheminova The criteria stated concerning state- A/S’s progress with a view to supporting A/S’s progress in respect of supporting ment of environmental and occupational the UN Global Compact. the UN Global Compact sustainability health and safety data, as described in principles. the accounting policies, have primarily

Copenhagen, March 15, 2011 PricewaterhouseCoopers Statsautoriseret Revisionsaktieselskab Birgitte Mogensen Jens Pultz Pedersen State Autorised Public Accountant MSc (EngineeringI, Diploma (Business Economics) Corporate Social Responsibility Report 2010 37 Ownership and organisation

Regions

North America Latin America Europe International India (100% owned subsidiary outside the regions)

Present with subsidiary or representative office

Cheminova is a private limited company (which supports scientific research at Cheminova’s top management, the of which the Chairman and Deputy the university [www.au.dk]), The Danish Global Executive Committee (GEC), has Chairman are independent members Labour Market Supplementary Pension the global management responsibil- of the Board. In 2010, the company Fund (ATP) and The Employee’s Capital ity for Cheminova’s regions and other had about 850 employees in Denmark Pension Fund (LD). activities such as Production & Logistics, and about 1,200 employees abroad. Cheminova’s global organisation is Development & Registration, Finance Cheminova is owned by Auriga Indus- structured as a matrix organisation & Support, Portfolio Management and tries A/S which is listed on NASDAQ with global functional areas across the Corporate Development. GEC also has OMX Copenhagen (the Copenhagen line responsibilities of the regions. The the overall responsibility for the com- stock exchange). The boards of Auriga CSR activities are integrated in all of pany’s CSR policies and activities – see and of Cheminova consist of the same the company’s global functional areas the section “Management statement” members. with employees assigned CSR reporting on page 35 and the section about the The main stockholders of Auriga (own- responsibility for geographical areas in report on page 4. ing more than 5% of the capital) are all regions. Aarhus University Research Foundation 38 Corporate Social Responsibility Report 2010 Corporate Governance

Good corporate governance as a prerequisite both for creating value for shareholders and supporting the group’s trustworthiness in relation to customers, suppliers, employees and all other stakeholders.

Cheminova is 100% owned by Auriga In- Auriga’s Board of Directors and Execu- Corporate Social Responsibility – dustries A/S, which is a listed company. tive Board must ensure an appropriate business-driven CSR Cheminova is the main activity in Auriga. group management structure at all Through responsible growth and sus- It is the overall strategic objective of times and develop an efficient risk man- tainable development, Auriga wants to Auriga to ensure the long-term value agement and control system to handle create value for shareholders and all creation for the benefit of the com- the economic and financial affairs of the other stakeholders. The value creation pany’s shareholders, employees and company as well as a responsible, sus- takes place based on respect for em- other stakeholders. It is the intention to tainable business approach. The Board ployees and regard for the interests of further develop Cheminova – via organic of Directors focuses on the company’s society and the environment by develop- growth and acquisitions – with a view to long-term interests and value creation ing and applying responsible business remaining competitive and an attractive for the benefit of shareholders and all methods in operations and activities all business in terms of earnings. other stakeholders. over the world. Please, see Auriga’s Annual Report Corporate governance in Auriga builds In Cheminova, it is a core value to 2010 for more information about the on relevant legislation such as the Dan- be good corporate citizens and sus- group’s strategic objectives, focus areas ish Companies Act (Selskabsloven), the tainability has already for many years and outlook of the financial development Danish Securities Trading Act (Værdipa- been a natural aspect of our business in the coming years. pirhandelsloven), the Danish Financial as regards development, production Statements Act (Årsregnskabsloven), and sales as well as the management Corporate governance IFRS and the Rules for Issuers on and organisation of the entire company The overall corporate governance is NASDAQ OMX Copenhagen, while worldwide. CSR is used as a manage- conducted based on: Auriga’s Articles of Association, objec- ment tool to both meet the increasing tives, values, policies and best practice demands for ethical and social responsi- • The recommendations on good corpo- for enterprises of the same size and of bility around us and as part of our quality rate governance, which outline guide- comparable international reach form the assurance and risk management. lines for the management structure basis of good corporate governance. The growing globalisation of Chemino- and practice for corporate governance. On April 8, 2010, the Danish Commit- va imposes greater and different require- • Cheminova’s mission, vision and tee on Corporate Governance published ments on the group’s CSR policy and values creating the scope for the a new and revised set of Recommenda- the way in which it communicates about company. tions on Corporate Governance. Auriga’s and controls its CSR activities. Based in • Corporate Social Responsibility Board of Directors has reviewed the Denmark, the company operates glob- describing ie. the Code of Business recommendations on the basis of the ally with activities in a number of coun- Principles and norms applicable to ”comply-or-explain” principle, and in the tries. By using CSR as a management the conduct of the employees in the opinion of the Board of Directors, Auriga tool, it is ensured that Cheminova’s 12 company and in relation to the outside complies with the recommendations. business principles and standards are world. Auriga’s comments on the recommen- complied with, for example principles • Internal policies concerning rules and dations are collated in the statutory re- and standards concerning humane and procedures for selected risk areas. port on corporate governance published safe working conditions. at www.auriga-industries.com > Auriga Cheminova’s business principles and Industries > Corporate Governance. standards are available in 13 languages

Corporate Social Responsibility Report 2010 39

Corporate Governance Structure Share capital

41.03% AarhusShareholders University at general meeting Exsternal Research Foundation auditors 12.39% ATP Board of Directors Chairmanship 5.92% LD Audit committee Ad hoc committees 4.13% Other Danish institutional investors 6.84% Foreign investorsExecutive Board Staff functions & IR Day-to-day 18.29% Other registered shareholders management Global Executive Committee Not registered4 global shareholderssenior vice presidents Auriga's own shares constitute4 regional presidents 1.4%. Aarhus University Research Foundation 41.03% Global matrix organisation ATP 12.39% Portfolio Production Development Finance LD 5.92% Mngm. & Logistics & Registration & Support Other Danish Region Europe institutional investors 4.13% Foreign investors 6.84% Region Latin America Other registered shareholders 18.29% Not registered shareholders 11.40% Region North America

Region International Auriga’s own shares constitute 1.4%

and constitute the group’s CSR policy, Auriga wants all employees in the gen under the symbol AURI, ID code which corresponds to the United Na- global organisation to know the con- DK0010233816, and are freely nego- tions Global Compact’s ten principles tents of Cheminova’s CSR policy and tiable. Class B shares carry one vote for responsible business conduct in the principles behind the United Nations per share of DKK 10. Please, refer to the areas of human rights, labour, Global Compact policy framework. We Auriga’s annual report for more informa- the environment and anti-corruption. support the UN’s human rights, protect tion about share trading and share price Against this background, Cheminova has our employees, fight corruption and look development in 2010. decided to commit itself to the United after the environment and have now Nations Global Compact initiative, which prepared the first progress report in line Owners outlines the UN’s recommendations to with the UN’s guidelines. The progress At the end of 2010, a total of 7,249 businesses around the world on how to report is an integrated part of this CSR shareholders were registered in the conduct themselves as good citizens. report for 2010. company’s register of shareholders, Cheminova’s procedures for ensuring representing a share capital of DKK that the CSR policy is complied with by Share capital 225,910,320 or just over 89% of the the global organisation includes a whis- Auriga’s share capital of DKK 255 share capital. At the end of 2010, just tleblower arrangement. The whistle- million is divided into Class A shares under 7% of the share capital was blower system was revised in 2010 and with a nominal value of DKK 75 million owned by foreign shareholders. Auriga’s means that, regardless of country and (7,500,000 shares) and Class B shares majority shareholders are the Aarhus position, Cheminova makes it possible with a nominal value of DKK 180 million University Research Foundation, owning for its employees to notify an external, (18,000,000 shares). Class A shares all Class A shares, besides ATP and LD independent party of any instances of are non-negotiable and carry ten votes each owning more than 5% of the share non-compliance with the CSR policy per share of DKK 10. Class B shares capital or voting rights. which they observe. are listed on NASDAQ OMX Copenha- 40 Corporate Social Responsibility Report 2010 GRI reporting 2010

The page numbers refer to the relevant sections of this report, and AR refers to page numbers in Aurigas Annual Report 2010.

F = Fully reported; P = Partly reported.

Information about the company Links Page

1. Vision and strategy 1. 1 Statement from the president, CEO and the Global Executive Com- - F 3 and 38 mittee 1. 2 Description of essential impacts, risks and opportunities http://www.auriga.dk/en/finance/annual_reports/annual_reports. F - htm - AR 2010, p. 16 2. Organisational profile 2.1 Name of the organization - F 1 2.2 Primary brands, products, and/or services http://www.cheminova.com/en/insecticides/nexide/ F - http://www.cheminova.com/en/herbicides/glyfos/ http://www.cheminova.com/en/fungicides/impact/ 2.3 Operational structure of the organization, including main divisions, http://www.auriga.dk/en/auriga_industries/corporate_structure/ F 37 operating companies, subsidiaries, and joint ventures 2.4 Location of organization’s headquarters - F 56

2.5 Number of countries where the or-ganization operates, and names http://www.auriga.dk/en/auriga_industries/corporate_structure/ F 37 of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form http://www.auriga.dk/en/investor_relations/share_information/ F - share_capital.htm 2.7 Markets served http://www.auriga.dk/en/finance/annual_reports/annual_reports. F 22 and htm - AR 2010, p. 12 37 2.8 Scale of the reporting organization http://www.auriga.dk/en/finance/annual_reports/annual_reports. F - htm - AR 2010, p. 4 + notes p. 34-58 2.9 Significant changes during the reporting period regarding size, - F 4 and 50 structure, or ownership 2.10 Awards received in the reporting period - F 9 3. Report parameters Aspect: Report profile

3.1 Reporting period for information provided - F 50 3.2 Date of most recent previous report March 23, 2010 F - 3.3 Reporting cycle - F 50 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 3.7 Limitations on the scope or boundary of the report. - F 4 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, n.a. F - outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations 3.9 Data measurement techniques and the bases of calculations, includ- - F 34 and ing assumptions and techniques underlying estimations applied to 50 the compilation of the indicators and other information in the report 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 Corporate Social Responsibility Report 2010 41

Information about the company Links Page

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 40 report 3.13 Verification - F 36 and 40 4. Governance, commitments and engagement

Aspect: Governance

4.1 Governance structure of the organization, including committees - F 35 under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight 4.2 Indicate whether the Chair of the highest governance body is also http://www.auriga.dk/en/auriga_industries/management_02/ F - an executive officer board_of_directors.htm http://www.auriga.dk/en/auriga_industries/management_02/execu- tive_board.htm 4.3 For organizations that have a unitary board structure, state the num- http://www.auriga.dk/en/auriga_industries/management_02/ F - ber of members of the highest governance body that are indepen- board_of_directors.htm dent and/or non-executive members http://www.auriga.dk/en/auriga_industries/management_02/execu- tive_board.htm 4.4 Mechanisms for shareholders and employees to provide recommen- - F 4 dations or direction to the highest governance body 4.5 Linkage between compensation for members of the highest govern- http://www.auriga-industries.com/en/auriga_industries/corporate_ F - ance body, senior managers, and executives (including departure governance/bonus_scheme_01.htm arrangements) and the organisation’s performance (including social and environmental performance) 4.6 Processes in place for the highest governance body to ensure con- http://www.auriga-industries.com/en/auriga_industries/corpo- F - flicts of interest are avoided rate_governance/ 4.7 Process for determining the qualifications and expertise of the http://www.auriga-industries.com/en/auriga_industries/corpo- F - members of the highest governance body for guiding the organisa- rate_governance/ tion’s strategy on economic, environmental, and social topics 4.8 Internally developed statements of vision, values, principles etc. and - F 30, 34, their implementation 48 and 49 4.9 Procedures of the Board for overseeing the organisation’s economic, http://www.auriga-industries.com/en/auriga_industries/corporate_ F - environmental and social management and performance governance/report_on_corporate_governance.htm http://www.auriga.dk/en/finance/annual_reports/annual_reports. htm - AR 2010, p. 14-15 4.10 Processes for evaluating the Boards own performance http://www.auriga-industries.com/en/auriga_industries/corporate_ F - governance/report_on_corporate_governance.htm http://www.auriga.dk/en/finance/annual_reports/annual_reports. htm - AR 2010, p. 15 Aspect: Commitments to external initiatives

4.11 Explanation of whether and how the precautionary approach or - F 3, 10 principle is addressed by the organisation and 38 4.12 Externally developed economic, environmental, and social charters, - F 2, 4, 44 principles, or other initiatives to which the organisation subscribes and 46 or endorses 4.13 Memberships in associations - F 9 42 Corporate Social Responsibility Report 2010

GRI reporting 2010, continued

Information about the company Links Page

Aspect: Stakeholder engagement

4.14 List of stakeholder groups engaged by the organizations - F 5 4.15 Basis for identification and selection of stakeholders with whom to - F 5 engage 4.16 Approaches to stakeholder engagement, including frequency of - F 5 engagement by type and by stakeholder group 4.17 Key topics and concerns that have been raised through stakeholder http://cheminova.aar.mim.dk/miljogodkendelse/Miljogodkendelser. F 10 and engagement, and how the organisation has responded asp?kapitelid=38&afsnitid=364&dato=11-03-2011&searchtype=3& 25 Fritekst=vvm#Bookmark0

Indicators of Company’s CSR Links Page Economics

Management approach F 38

Aspect: Economic performance

EC1 Direct economic value generated and distributed, including rev- http://www.auriga.dk/en/finance/annual_reports/annual_reports. F 39 enues, operating costs, employee compensation, donations and htm - AR 2010, p. 4 other community investments, retained earnings, and payments to capital providers and governments EC3 Coverage of the organization’s defined benefit plan obligations http://www.auriga.dk/en/finance/annual_reports/annual_reports. F - htm - AR 2010, note 21 p. 47-48 Aspect: Market presence

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

Management approach F 34

Aspect: Materials

EN1 Materials used by weight or volume - F 26 Aspect: Energy

EN3 Direct energy consumption by primary energy source - F 26 EN4 Indirect energy consumption by primary source - F 25 Aspect: Water

EN8 Total water withdrawal by source - F 26 Aspect: Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent - F 25 to, protected areas and areas of high biodiversity value outside protected areas EN12 Description of significant impacts of activities, products, and servic- - F 25 es on biodiversity in protected areas and areas of high biodiversity value outside protected areas Aspect: Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight - F 26 EN20 NO, SO, and other significant air emissions by type and weight - F 26 EN21 Total water discharge by quality and destination - F 25 and 26 EN22 Total weight of waste by type and disposal method - F 26 EN23 Total number and volume of significant spills All spills are of insignificant volume P 26 Corporate Social Responsibility Report 2010 43

Indicators of Company’s CSR Links Page Aspect: Products and services

EN26 Initiatives to mitigate environmental impacts of products and ser- http://www.cheminova.com/en/cheminova/regulatory_assess- F 10, 24 vices, and extent of impact mitigation ments/ and 28 Labour practices and decent work

Management approach F 34

Aspect: Occupational health and safety

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, - F 26 and number of work-related facilities by region LA8 Education, training, counselling, prevention, and risk-control http://www.cheminova.com/en/csr_/labour_practices/ F - programs in place to assist workforce members, their families, or community members regarding serious diseases Human rights

Management approach F 34

Aspect: Freedom of association and collective bargaining

HR5 Operations identified in which the right to exercise freedom of http://www.cheminova.com/en/csr_/labour_practices/ F 34 association and collective bargaining may be at significant risk, and actions taken to support these rights Aspect: Child labour

HR6 Operations identified as having significant risk for incidents of child http://www.cheminova.com/en/csr_/labour_practices/ F 34 labour, and measures taken to contribute to the elimination of child labour Aspect: Forced and compulsory labour

HR7 Operations identified as having significant risk for incidents of http://www.cheminova.com/en/csr_/labour_practices/ F 34 forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour Society

Management approach F 34

Aspect: Community

S01 Impacts of operations on communities, including entering, operat- F 5 ing, and existing Aspect: Corruption

SO3 Percentage of employees trained in organisation’s anti-corruption F 34 policies and procedures Aspect: Public policy

SO5 Public policy positions and participation in public policy development F 4 and lobbying Product responsibility

Management approach F 34

Aspect: Customer health and safety

PR1 Life cycle stages in which health and safety impacts of products http://www.cheminova.com/en/cheminova/regulatory_assess- F - and services are assessed for improvement, and percentage ments/ of significant products and services categories subject to such procedures Aspect: Product and service labelling

PR3 Type of product and service information required by procedures, http://www.cheminova.com/en/cheminova/regulatory_assess- F - and percentage of significant products and services subject to such ments/ information requirements 44 Corporate Social Responsibility Report 2010 UN Global Compact

Progress report on the implementation of the The ten principles of the United principles of the UN Global Compact. Nations Global Compact: Human rights 1. Businesses should support and respect the protection of internationally pro- claimed human rights; and 2. make sure that they are not complicit in human rights abuses.

Labour 3. Businesses should uphold the freedom of association and the effective recog- nition of the right to collective bar- gaining; 4. the elimination of all forms of forced and compulsory labour; 5. the effective abolition of child labour; and 6. the elimination of discrimination in respect of employment and occupa- tion.

Environment 7. Businesses are asked to support a pre- cautionary approach to environmen- tal challenges; 8. undertake initiatives to promote Cheminova has supported the United Nations Global Compact greater environmental responsibility; since 2009. We support the endeavors to make globaliza- and tion more socially and ecologically compatible and to raise 9. encourage the development and diffu- standards in the fields of human rights, labour rights and sion of environmentally friendly tech- environmental protection and in the fight against corruption. nologies. The following table shows the activities and management systems at Cheminova that support the 10 principles of the Anti-corruption Global Compact and the results which were achieved in the 10. Businesses should work against cor- period under review. Information on the Global Compact can ruption in all its forms, including ex- be found at www.unglobalcompact.org. tortion and bribery. The page numbers refer to the relevant sections of this report.

Systems Measures 2010 Achievements 2010 Human Rights Principle 1: • Code of Business Principles (p. 48) • Make a position on Human Rights (p. 34) • Executed (p. 34) Support of human rights • Human Rights Position (p. 34) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) • Supplier Code of Conduct (p. 49) Principle 2: • Code of Business principles (p. 48) • Roll-out of the position on Human Rights (p. 34) • Executed (p. 34) Exclusion of human • Human Rights Position (p. 34) • Roll-out of the CSR management of suppliers and • Executed (p. 7) rights violations • Supplier Code of Conduct (p. 49) toll producers (p. 34) • CSR management of suppliers and toll producers (p. 34) Labour Standards Principle 3: • Code of Business Principles (p. 48) • Make a position on Labour Protection (p. 34) • Executed (p. 34) Observance of the right • Labour Protection Position (p. 34) • Roll-out the position on Labour Pro-tection (p. 34) • Executed (p. 7) to freedom of assiciation • Supplier Code of Conduct (p. 49) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) • CSR management of suppliers and toll • Roll-out of the CSR management of suppliers and • Executed (p. 7) producers (p. 34) toll producers (p. 34) Corporate Social Responsibility Report 2010 45

Systems Measures 2010 Achievements 2010 Principle 4: • Code of Business Principles (p. 48) • Make a position on Labour Protection (p. 34) • Executed (p. 34) Abolition of all forms of • Labour Protection Position (p. 34) • Roll-out the position on Labour Protection (p. 34) • Executed (p. 7) forced labour • Supplier Code of Conduct (p. 49) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) • CSR management of suppliers and toll • Roll-out of the CSR management of suppliers and • Executed (p. 7) producers (p. 34) toll producers (p. 34) Principle 5: • Code of Business Principles (p. 48) • Make a position on Labour Protection (p. 34) • Executed (p. 34) Abolition of child labour • Labour Protection Position (p. 34) • Roll-out the position on Labour Protection (p. 34) • Executed (p. 7) • Supplier Code of Conduct (p. 49) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) • CSR management of suppliers and toll • Roll-out of the CSR management of suppliers and • Executed (p. 7) producers (p. 34) toll producers (p. 34) Principle 6: • Code of Business Principles (p. 48) • Make a position on Labour Protection (p. 34) • Executed (p. 34) Elimination of discrimi- • Labour Protection Position (p. 34) • Roll-out the position on Labour Protection (p. 34) • Executed (p. 7) nation • Supplier Code of Conduct (p. 49) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) • CSR management of suppliers and toll • Roll-out of the CSR management of suppliers and • Executed (p. 7) producers (p. 34) toll producers (p. 34) Environment

Principle 7: • Code of Business principles (p. 48) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) Precautionary environ- • Responsible Care (p. 46) • Roll-out of the CSR management of suppliers and • Executed (p. 7) mental protection • Supplier Code of Conduct (p. 49) toll producers (p. 34) • HSEQ management systems (p. 34) • Implement ISO 14001 and OHSAS 18001 at the • Implementation plan • CSR management of suppliers and toll Technical Division in India no later than mid. 2011 followed (p. 6) producers (p. 34) (p. 6) • FAO’s Code of Conduct (p. 21) • Contractly ensure that direct customers which hold • Executed (p. 6) registration on behalf of the Cheminova operate in compliance with FAO’a Code of Conduct (p. 6) • Registration of the pre-registered substances which • Executed (p. 7) must be registered before the end of 2010 (p. 28) Principle 8: • Code of Business Principles (p. 48) • Phase out the use of WHO class I product in • Executed (p. 6) Specific commitment to • Responsible Care (p. 46) developing countries (p. 10) environmental protection • Supplier Code of Conduct (p. 49) • Reduction of the energy consumption at the • Executed (p. 6) • HSEQ management systems (p. 34) production site in India (p. 6) • CSR management of suppliers and toll • Reduction of the COD emission at the production • Executed (p. 6) producers (p. 34) site in India (p. 6) • FAO’s Code of Conduct (p. 21) • Reduction of the water consumption at the factory • Executed (p. 6) in India (p. 6) • Reduction of the energy consumption at the • Executed (p. 7) production site in Denmark (p. 7) Principle 9: • Code of Business Principles (p. 48) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 7) Diffusion of environmen- • Responsible Care (p. 46) • Roll-out of the CSR management of suppliers and • Executed (p. 7) tally friendly technologies • Supplier Code of Conduct (p. 49) toll producers (p. 34) • CSR management of suppliers and toll • Reduction of the energy consumption at the • Executed (p. 6) producers (p. 34) production site in India (p. 6) • Reduction of the COD emission at the production • Executed (p. 6) site in India (p. 6) • Reduction of the water consumption at the factory • Executed (p. 6) in India (p. 6) Anti-corruption

Principle 10: • Code of Business Principles (p. 48) • Make a position on Anti-corruption (p. 34) • Executed (p. 34) Measures to fight • Anti-corruption Position (p. 34) • Roll-out the position on Anti-corruption (p. 34) • Executed (p. 34) corruption • Supplier Code of Conduct (p. 34) • Roll-out of the Supplier Code of Conduct (p. 34) • Executed (p. 34) • CSR management of suppliers and toll • Roll-out of the CSR management of suppliers and • Executed (p. 34) producers (p. 34) toll producers (p. 34) General CSR issue

• Code of Business Principles (p. 48) • In India, a project comprising a small number of • The implementation • Responsible Care (p. 46) villages will be implemented. The project will be plan followed (p. 12) • FAO’s Code of Conduct (p. 21) based on product stewardship but with a broader CSR-scope of embedding correct use of plant protection into the daily life and thereby demon- strate the benefit of sustainable product use at village level (p. 12) 46 Corporate Social Responsibility Report 2010 Responsible Care

The Responsible Care® Program of the Association of Danish Process Industries.

Declaration of commitment.

1. Company policy The company shall develop and comply with a policy with prospective objectives of a con- tinuous improvement within the areas of environment, safety and health. This policy shall form a constituent part of the overall policy and strategy of the Company. The Company policy on environment, safety, and health shall involve the entire organisation of the Com- pany and be taken into account in the planning and implementation of all Company activi- ties. The environment management system in the company can profitably be arranged so that there circularly will be undertaken a re-evaluation of the system.

2. Employee commitment and responsibility The Company shall keep their employees at all levels well informed on the Company policy on environment, safety and health. The Company shall foster commitment and responsibility among its employees and en- sure an active employee contribution to fulfil the objectives. The Company shall promote individual alertness among employees to sources of pollu- tion and issues relevant to safety and health. The Company shall establish well-defined responsibilities among its employees and offer regular and adequate training enabling of their employees to fulfil their responsibilities.

3. Effective resource utilization The Company shall strive to achieve the lowest achievable impact on the surrounding as a whole by: - Minimising the use of raw materials and energy - Minimising the process emissions - Minimising the risk of accidents and limiting the consequences of accidents - Minimising the health risks for employees

4. Process- and product development New processes are arranged and existing processes are adapted and improved with the aim of providing a sustainable development. An evaluation of the technical and economic possibilities and the social demands as a whole shall be taken into consideration. With new constructions and extension of existing facilities around the world, the possibilities of using clean and safe technology shall to be taken into consideration. In developing new products the Company shall take into account the total consumption of raw material and energy resources during production, use or disposal after use or of residual products formed during production or use. Corporate Social Responsibility Report 2010 47

5. Monitoring, registration and documentation The Company shall at regular intervals monitor process emissions to the working environ- ment and the surrounding environment, preferably by generally approved methods. The Company shall register all accidents and incidents and investigate the events and causes with a view to utilising the experience for future prevention. The companies’ measurements and registrations form the basis for regular documenta- tion of the results about the environment, safety and health conditions. The Company shall regularly evaluate performance compared to objectives. Relevant and agreed upon data about emissions, resources and safety is yearly stated by the company that then report these to the Association of Danish Process Industries.

6. Supplier The company shall encourage its suppliers to deliver environmentally, health and safety sound raw material and products. By means of specific demands and instruction the Company shall ensure that suppliers of equipment and services are chosen among those who fulfil the demands according to the policy on environment, safety and health.

7. Customers The Company is responsible that customers receive all relevant information on correct processing and use of the Company’s products including information on disposal of re- sidual products, and information of relevance for subsequent processing as far as avail- able.

8. Transport and storage The Company shall ensure safe and regulatory compliant transport to and from the Com- pany ia by demanding transporters to provide relevant training and instruction to drivers and others involved in transport activities. The company shall ensure safe storage of raw material and products in the company as well as urge the other parts in the supply chain to fulfil the guidelines therefore.

9. Communication The company creates increased dialog with suppliers, customers and other relevant parts in the supply chain. The Company shall cooperate openly with the competent authorities on issues relevant to en-vironment, safety and health. The Company shall provide adequate documentation on such issues to the authorities. On the basis of documentation provided by the Company to the authorities the Company may regularly inform the neighbours and other society stakeholders on issues of environment, safety and health.

10. Cooperation The company contribute to the experience exchange between Responsible Care compa- nies among other things about subjects as reducing emissions and accidents as well as handling of supplier relationships. 48 Corporate Social Responsibility Report 2010 Code of Business Principles Corporate Social Responsibility Report 2010 49 Fundamental principles in the Code of Conduct for suppliers to Cheminova A/S

Supplier Code of Conduct

1. All applicable laws and regulations of the country where operations are undertaken must be complied with. 2. No forced or compulsory labour may be used, and employees shall be free to leave employment after reasonable notice. 3. No child labour may be used. 4. Discrimination in employment related decisions may not take place, and no em- ployee suffers harassment, physical or mental punishment, or other form of abuse. 5. The right of employees to collective bargaining shall be respected. 6. Wages and working hours will, as a minimum, comply with all applicable wage and hour laws and rules and regulations, including minimum wage, overtime and maxi- mum hours in the country concerned. 7. No improper advantage may be sought, including the payment of bribes, to secure delivery to Cheminova. 8. Safe and healthy working conditions will be provided for all employees. 9. Emergency procedures shall be established to prevent major accidents that can cause harm to health or the environment. 10. Operations will be carried out with care for the environment. 50 Corporate Social Responsibility Report 2010 Accounting policies, CSR

Data on the environment, health and Stähler, Althaller Water consumption safety cf. page 26 in this report have Str. Com.le per Campagna, 5 Water consumption both for cooling and been included and calculated according I-20078 S.Colombano al Lambro (MI) processes etc. has been calculated on to the accounting policies described Italy the basis of water meters. However, the below. water consumption for cooling towers in Cheminova MFG Pty. Ltd. India has been estimated. Reporting period 16 Lucca Road January 1 up to and including December Wyong, NSW 2259 Energy consumption 31, 2010. The CSR report is published Australia The consumption of natural gas, electri- once a year. city and fuel oil is based on meter read- Headland Agrochemicals Limited ings. Energy consumption when using Extensive activities Rectors Lane, Pentre natural gas (which is measured in Nm3) Data are calculated for Cheminova’s Deeside CH5 2DH and fuel oil (which is measured in litres) companies in Denmark, Germany, India, United Kingdom is then calculated using conversion fac- Italy and the United Kingdom. Chemino- tors. In Denmark, the latest conversion va’s residential property is not included Water and energy consumption has factors set by the Danish Energy Author- in the accounts. been included because they are impor- ity are used. In India, the conversion The following addresses are included tant resources. Emissions to the air and factors are set by Cheminova. Natural in the accounts: waste water are stated using para- gas consumption includes the gas con- meters which give an overall impression sumed to generate power for sale. Cheminova A/S of the quality of the waste water and air Thyborønvej 78 emissions which are significant in rela- Raw materials consumption DK-7673 Harboøre tion to the surroundings, and where it is Denmark also possible to make comparisons with Chemical synthesis other companies. Likewise, it has been Raw materials are defined as basic Cheminova India Ltd. decided to provide information about the substances that, through chemical reac- Formulation Division volume and handling of waste, which tions, contribute to the product mol- 242/P, G.I.D.C. Estate is an expression of both a resource and ecule. They also comprise substances Panoli - 394 116 an impact on the surroundings. Opera- that are actively involved in the chemical Dist.: Bharuch tional disruptions are primarily calculated reaction and consequently transformed, Gujarat, India because they are an expression of how but which do not necessarily end up in the group handles situations which can the molecule. Cheminova India Ltd. develop into serious environmental Technical Division impacts. The safety and well-being of Formulation 241, G.I.D.C. Estate employees is important for the group. It Active ingredients, solvents (excluding Panoli - 394 116 has therefore been decided to provide water), emulsifiers and other sub- Dist.: Bharuch information about the number of ac- stances are included in the statement Gujarat, India cidents at work, the accident frequency to the extent to which they form part of and absence from work due to acci- the product. Cheminova India Ltd. dents. Intermediate Division Environmental impacts resulting from Filling 27, 28, G.I.D.C. Estate transport have not been calculated. Formulations purchased from another Panoli - 394 116 Cheminova company or from third par- Dist.: Bharuch Important changes in relation to ties are considered raw materials. Pack- Gujarat, India the last reporting period aging is not included in the calculations. The accounting principles used in the The amounts are measured. StählerTec Deutschland GmbH & Co. KG report for 2009 are without significant Stader Elbstrasse 26-28 changes used in the report for 2010. Waste water D-21683 Stade Waste water includes sanitary waste Germany water. The volumes of waste water are Corporate Social Responsibility Report 2010 51

measured. However, the volume of basis of concentration measurements cording to two categories, with the total sanitary waste water in Germany has which are made according to fixed pro- number being reported. been estimated. The concentrations grammes, blower capacity and operat- Category 1 incidents are those which of COD, nitrogen and phosphorus are ing time. lead to significant pollution of the determined through chemical analyses environment outside the production of water samples taken according to a Particles site, and include those overstepping fixed control programme. The concentration in the discharges is the environmental authorities’ terms for measured. The air flow is measured, emissions. Air emissions estimated or calculated on the basis of Category 2 incidents are those that data for blowers and operating time. lead to pollution at nuisance level,

SO2 including increased emissions of sub- At the production plants in Denmark, CO2 stances in relation to normal values, air emissions are the sum of contribu- Contributions from consumed natural the generation of additional waste and tions from consumed natural gas/fuel oil gas/fuel oil are calculated by multiplying detecting new substances in the inflow and contributions from the underlying consumption by conversion factors. to the biological waste-water treatment processes. SO2 emissions are calcu- In Denmark, there are additional plant in or outside the production site. lated by multiplying consumption by a process-related contributions from conversion factor determined by the the air-incineration plant and from the Work environment authorities. waste-water incineration plants. The The number of accidents at work is

Emissions from the SO2 scrubber are substances which are incinerated in the counted for all employees under the determined as emissions during normal air-incineration plant give rise to lower organisational structure. The number is operations plus emissions during the CO2 emissions, which are based on fig- counted on the basis of reports to the time the scrubber is not operating (out ures from 2005. This process-conditional authorities. However, only the accidents time). Emissions during normal opera- contribution at the waste-water incinera- at work which have resulted in absence tions are determined with two perfor- tion plants is calculated on the basis of for a minimum of two days are included. mance measurements without distin- a mass balance for the glyphosate plant. The accident frequency is the number guishing between whether it is SO2 This calculation is based on measure- of accidents at work per one million or SO3. Emissions during out time are ments of the incoming raw materials man-hours worked. determined as the average of six meas- and the outgoing finished products. Absence due to accidents is the urements in 2006 multiplied by the out number of lost man-hours per 1,000 time. A performance measurement is Waste man-hours worked. made up of three one-hour concentra- All waste types are weighed by the The number of man-hours worked tion and flow measurements carried out company. Waste is classified by Chemi- does not include breaks but does in- on the same day. nova according to guidelines issued by clude time spent on courses. From the air-incineration plant, the the authorities. emission of SO2 is determined by means of two performance measure- Spillage and waste ments multiplied by the operating time. The number of spillage and waste is At the production plants in India, the calculated by counting the number of emission of SO2 is determined on the internal reports. Reporting is made ac- 52 Corporate Social Responsibility Report 2010 Glossary

Active ingredient: Fossil fuel: Omethoate: Active chemical in its pure or technical form. Coal, oil and gas. Insecticide among others used to control mites in Australia. Auditing: GDP: Review of accounts. Gross Domestic Product. Pesticides (plant protection products): Collective name for insecticides, herbicides GEC: BNP: and fungicides. GDP (Gross Domestic Product). Global Executive Committee. Cheminova’s top management group. Phorate: BOD: Insecticide used against soil-living pests. Biochemical Oxygen Demand – English Glyphosate: term for BI5 (five days’ biochemical oxygen The active ingredient in the herbicide PIC: consumed). best known under Monsanto’s trademark Prior Informed Consent (Prior informed Roundup®. Cheminova is selling it under the consent that has to be established before a Cairns: trademark Glyfos®. product from the PIC list is exported). Group of agricultural exporting countries, established in 1986, with a commitment to GNI: Product stewardship: reforming agricultural trade. Gross National Income. Overall description of responsible manage- ment of a company’s products. Carbofuran: GRI: Insecticide, primarily used in rice and pota- Global Reporting Initiative with guideline for Ramsar areas: toes in Colombia. reporting on CSR. Wetlands where wildlife is protected ac- cording to the convention of wetlands of ISO 14001: Chemical synthesis: international importance, particularly as International environmental certification Proces, where chemical compounds react habitats for birds. with each other so that new compounds are covering the surrounding environment. REACH: formed. Marketing Portal: Registration, Evaluation and Authorisation An internal website with useful information Class I product: of Chemicals (Common EU regulation on concerning marketing. A product , which according to WHO’s rec- documentation requirements concerning ommended guidelines is classified as highly Methamidophos: chemicals). hazardous or extremely hazardous. Insecticide used e.g. in cotton and soy- Registration data: beans. COD: Test results and documentation that must Chemical Oxygen Demand - measure for the Methomyl: be submitted to the authorities in order to content of organic compounds in water. Insecticide, in Mexico mostly used in cotton obtain sales permissions. and vegetables. CSR: Responsible Care: Corporate Social Responsibility. Social, Methyl parathion: Objectives concerning responsible conduct, environmental and ethical demands made Insecticide mostly used in cotton. adhered to by Cheminova. between companies, customers, interested parties and collaboration partners. Microcapsules (microcapsule formula- Suspension concentrate: An active ingredient in solid form suspended DDVP: tion): Fluid product where the active ingredient is in water with surfactants which enables the Insecticide used in rice in India. encapsulated in microscopic capsules which product to be diluted with water to a low Emulsifiable concentrate: are dispersed in water. concentrate spray liquid. Mixture of a liquid active ingredient, solvents Monocrotophos: Suspo-emulsion: and surfactants that enable the product to Insecticide mainly used in cotton and rice. A mixture of water-insoluble active ingre- be diluted with water to a low concentrate dients dispersed in an aqueous solution, spray fluid. Nm3: where some are in suspension and others Normal cubicmeter (volume at standard FAO: are emulsified in water. pressure and temperature). The UN’s Food and Agriculture Organisation. Third-party products: NO : FAO’s Code of Conduct: x Sales products not produced by Cheminova Total concentration of all nitrogen oxides FAO’s international guidelines concerning but bought from other suppliers. calculated as NO . the distribution and use of pesticides. 2 Triazophos: OECD: Fenamiphos: Insecticide used in particular in cotton in Organisation for Economic Cooperation and Insekticide used against soil-living pests India. Development. (nematodes). Unintended incidents: OHSAS 18001: Formulation: Operational disruptions with a brief effect on International environmental certification Active ingredient to which has been added the external environment. covering the working environment. accessory agents that make the product WHO: ready-to-use as control agent. World Health Organisation. Corporate Social Responsibility Report 2010 53

“World food production will need to increase by 70 percent to feed a population of over nine billion people in 2050. With limited land, farmers will have to get greater yields out of the land already under cultivation.”

Jacques Diouf, Director-General, Food and Agriculture Organization of the United Nations World Food Day, October 2010 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 HELPING YOU GROW