Focus Ingredients for a changing world Sustainability Report 2010/11 Contents
MEETING FUTURE CHALLENGES Sustainability snapshots...... 3 Value chain perspectives...... 6 From challenge to performance ...... 8 Synergies drive future opportunities ...... 9
STAKEHOLDERS AND STRATEGIES Stakeholder engagement ...... 12 Key impacts, risks and opportunities...... 15 Focusing on what matters...... 20 Sustainability strategies, targets...... 22 28 Embracing a life cycle approach to sustainability ...... 26
SUSTAINABLE SOURCING Key impacts of our raw materials...... 30 Robust approaches enable impact and risk reduction. . . . . 32
OPERATIONAL EFFICIENCY Our environmental approach ...... 38 Corporate carbon footprint...... 39 Energy...... 41 Greenhouse gases ...... 43 Water...... 46 Materials and packaging ...... 51 36 Material waste ...... 53 Logistics...... 54 Compliance...... 55
SUSTAINABLE SOLUTIONS Solutions to meet global challenges...... 58 Meeting customer needs ...... 62 Using LCA to change the discussion...... 63 Inventing the future through market-driven innovation. . . . . 66
PEOPLE A powerful global workforce...... 70 Employee development ...... 72 56 Employee engagement...... 73 Human rights and our Code of Conduct...... 75 Health and safety...... 76 Community and society...... 79
OUR COMPANY Our business and products ...... 84 Bringing sustainability to the top...... 87 External commitments...... 88 Recognition and awards...... 89 Reporting...... 90 Assurance...... 92 68
2 SUstainability report 2010/11 Contents Sustainability snapshots s e g
2 010 / 11 allen
DuPont acquires Danisco A/S in May 2011 in accordance with Danish law . This procedure is expected ch e e eople P
On May 19, 2011, DuPont, through a wholly-owned subsidiary, to be completed during the third quarter of 2011, at ur completed the acquisition of approximately 92 .2% of the which point DuPont will own 100% of Danisco’s shares . t fu Our outstanding shares of Danisco A/S (“Danisco”) pursuant g n
to a previously announced tender offer for all of Danisco’s This report describes the Danisco sustainability i outstanding shares, excluding treasury shares . performance prior to the DuPont acquisition and will eet
serve as the last sustainability report published by Danisco . m The remaining outstanding shares are in the process of We will endeavor to align our sustainability strategies going being acquired through a compulsory acquisition procedure forward with the new DuPont organization and business .
AWARD WINNING Employee YEARS IN THE DOW Sustainability report engagement index JONES SUSTAINABILITY 2009/10 INDEX #1 72% 10
Completed lIFE CYCLE rOUNDTABLE ON energy reduction ASSESSMENTS (LCA) SUSTAINABLE PALM OIL since 2009/10 certified plants 14 7 0 .4%
increase in water reduction co2 reduction renewable energy since 2009/10 since 2009/10 since 2009/10 3 6%. 2 1%. 12%
Meeting future challenges SUstainability report 2010/11 3 Meeting future challenges Over 9 billion people by 2050 — more than triple the world population in 1960 and 30% more than today .
In our lifetimes – and those of our children – the world will The need for renewable energy to power communities and change in unprecedented ways . As the population soars to connect people will grow dramatically as rural areas and more than 9 billion over the next 40 years, we will confront emerging economies connect to the grid in greater numbers food, health, energy, and ecosystem challenges unknown to than ever before . And finite fossil fuels will challenge us to our parents and grandparents . Demand on natural resources innovate new technologies for transportation, chemicals, like water and arable land will increase exponentially to meet plastics and other petroleum-based products . the nutrition needs of a burgeoning population, requiring more efficiency in farming, food production, and distribution . These issues are daunting, to be sure, but not Urban crowding and degraded environments will drive us to insurmountable . Working together across business, pioneer new ways to protect human health . government, academia, and civil society, we can devise new solutions for even the most significant challenges . At Danisco, we have already begun .
Nine billion people in 2050 SUSTAINABILITY s
Balancing environmental, e g social and economic allen
factors throughout ch e e eople P
the value chain ur t fu Our
g n i eet m Embracing the global challenges We recognise the significance of our role in creating truly In particular, Danisco is sustainable products . We embrace our responsibility – as a positioned to help address company, as a leader, and as an innovator – to contribute to four global challenges – food, a brighter future for all . And we know we can draw on our health, energy and chemicals . Together, legacy of stewardship to forge new paths to that future, where these four challenges serve as a compass for our people are healthy and well-nourished, and where ecosystems business strategy, turning difficulties into catalysts for change are leveraged responsibly to support global needs for energy, and challenges into opportunities for leadership toward a chemicals and other resources . Although there is much more brighter future . We invite you to learn more in this report . to do, we believe we are already contributing to that future .
Population growth 2 010: 7 billion 2050: 9 billion
FOOD Wasteful inefficient, Efficient, environmentally neutral, environmentally degrading waste-free in production, distribution & consumption
HEALTH Population that is ageing, Resources, foods, medicines overweight & undernourished that promote lasting health
ENERGY Fossil fuel dependence, Renewable energy solutions climate & security issues to replace oil & gas supplies
CHEMICALS Largely petroleum-based Efficient, bio-based substances in products alternatives to petrochemicals
Meeting future challenges SUstainability report 2010/11 5 Meeting future challenges Value chain perspectives Our suppliers The approximately 2,000 suppliers who provide us with the raw materials to develop innovative, sustainable solutions, range from specialty farmers to large agricultural operations . Regardless of their size, every Danisco supplier is important to our business . We work to ensure that all our suppliers understand and live up to our expectations for strong ethical practices, good governance, sound environmental management and responsible human rights measures . Should a supplier need assistance meeting our Supplier Code of Conduct or aligning with our values, we believe it is in our collective best interest for us to Danisco supplier support their capacity development to contribute to a “Here in Colima the quality of the limes are better than in the sustainable future . other states . Since we started working with Danisco, we do not treat the lime peel as waste, and we thank Danisco for the support they have given us “. Javier Moreno Contreras, Owner - AELTSA S.A.
O ur employees
People are the key “ingredient” in Danisco’s formula for success . Attracting and retaining dedicated,and talented people across all roles in all the countries where we operate is a business imperative .That’s why we work and invest to strengthen our human resource capabilities and employee programmes .The experience, expertise and creativity our customers value is alive and well in the 6,890 people we employ in 40 countries DaniscoSupplier employeeto Danisco “IHere chose in ColimaDanisco theto make quality a differenceof the limes . For is me,better sustainability than is a seriesin the ofother projects, states processes, . Since we and started initiatives working one canwith do both in the companyDanisco, weand dopersonally not treat to the make lime the peel world as awaste, better and place . It is demonstratedwe thank Danisco not justfor thein initiatives support like they Think have Green, given Ausct . Green, but also in engagement through dialogue and giving ”. Gilda Sosa Witling, HR Consultant
6 SUstainability report 2010/11 Meeting future challenges Javier Moreno Contreras, Owner - AELTSA S.A. -AELTSA Owner Contreras, Moreno Javier support they have given us given have they support the for Danisco thank we and waste, as peel lime the treat not states other “Here supplier Danisco in Colima the quality of the limes are better than in the the in than better are limes of the quality the Colima in Since we started working with Danisco, we do do we Danisco, with working started we .Since . “
or environmental profiles so we could make better choices better make we could so profiles environmental or benefits health their about clear were products if consumer the help back item the put Iautomatically pronounce, Ican’t words “Shopping Consumer Kristina Reid-Hansen Kristina has become quite complicated and confusing and complicated quite become has global issues. meet someofsociety’s most difficult increatingproductsto our inspiration demands . expandingglobalenergy rapidly with safer andaddress alternatives impacts, chemicals replaceharmful boost nutrition, lower environmental for productsthatimprove health, to meettheirever-increasing needs develop andthesolutionswe devise role inshapingtheproductswe play anactiveDanisco customers O ur customers ur
hey are our partners and They areourpartners If I see Isee .If It would would .It . ” Steve Peterson, Director Sourcing Sustainability - General Mills Sustainability Steve Sourcing Peterson, Director face we challenges global the on together work to need all we and this in astake We have all consumers our also and retailers, the growers, our suppliers, “ customer Danisco customer Danisco ” Steve Peterson, Director Sourcing Sustainability - General Mills Sustainability Steve Sourcing Peterson, Director face we challenges global the on together work to need all we and this in astake We have all consumers our also and retailers, the growers, our suppliers, E E verybod verybod y in the food business needs to work together – our –our together work to needs business food the y in y in the food business needs to work together – our –our together work to needs business food the y in sources . renewable energy responsible and food affordability, food safety bolstering orproviding orreducedfatsandsalt,nutrition to contributing healththroughenhanced that meanssupporting over, theworld in thelives ofconsumers whether of allDaniscoproductsistofacilitateimprovements are ever-present inourthoughts. We directly withconsumers, donotwork but they T Meeting future challen ges he consumers . . ” ”
Understanding SU perspectives value chain s ta i nab
The fundamentalgoal i l i ty r ty epo r t 2010/11 . .
7
meeting Ourfutur Peoplee challenges Meeting future challenges
From challenge to performance Danisco’s stakeholders are central to our sustainability strategies, our path, and our progress .Their input helps us to better understand our impacts throughout the value chain . It informs our decision-making . And it shapes our strategies for lasting change . Our suppliers, our employees, our customers, and their consumers enlighten us, advise us, and challenge us to optimise, innovate, and transform .
In 2009, we looked closely at our previous stakeholder product offerings and to further our sustainability leadership engagement efforts and realized a change was in order . position in the food and biotechnology industries . Although we were responding to stakeholder questions, we did not create many opportunities for two-way We also finished developing a sophisticated tool for assessing, discussion . Since then, the Danisco Stakeholder Advisory tracking, and mitigating risk in our supply chain and partnering Board has opened the door to new dialogue with our with suppliers who share our commitment to sustainable and stakeholders, allowed us to more fully understand their ethical sourcing . We achieved Roundtable on Sustainable Palm ideas and concerns, and provided new avenues for Oil certification for our seven plants that produce emulsifiers exploring opportunities and solutions in our value chain . and blends thereof . And we developed a comprehensive new Code of Conduct . In these initiatives and others, sustainability Sustainability achievements permeates our decision-making, energises our employees, During the past year, the support of our external stakeholders and transforms our relationships with our customers . and the ingenuity of our employees have produced impressive results . We increased our proportion of renewable energy Future opportunities by 3 .6%, cut CO2e emissions by almost 13%, and reduced I’m proud of these accomplishments, but recognise that our overall energy consumption by 0 4%,. an incremental but work is far from complete . As all of us at Danisco look ahead to important step toward our new 2020 target of reducing our new place in the DuPont family, I’m most excited about the energy use by 10% compared to revenue . At the same opportunity to integrate our stakeholder-oriented, value chain- time, water consumption decreased by 2% during the driven approach to sustainability with DuPont’s own leadership year compared to revenue, toward our 2020 reduction in this area . We share strong core values around customer and target of 20% – with an increased focus on water scarcity consumer focus, personal responsibility and ethics, sustainability risk in our operations and main raw material sources . and environmental responsibility, safety, and respect for people . We also share clear visions and missions to provide We have further focused our Life Cycle Assessment capabilities market- and science-driven innovations that to evaluate our corporate carbon footprint and to provide a provide safer, healthier and more sustainable basis for future evaluation of the impact reductions afforded solutions in light of the global challenges by our products in consumer use . We have launched an effort and megatrends . By leveraging DuPont’s to evaluate the application benefits of our products and have considerable expertise and resources established a platform to drive sustainability partnerships – in green chemistry, biosciences, and with our customers to deliver improved sustainability sustainable innovation – and combining profiles of their value chains and product offerings . This these with our own strengths market driven approach has allowed us to differentiate our in nutrition and health, food science and safety, pioneering research and development, and biotechnology, I am confident In 2011, that together we can accomplish we will align what neither of us can do alone . our targets with DuPont Jeffrey Hogue targets Vice President Danisco Corporate Sustainability
8 SUstainability report 2010/11 Meeting future challenges nutrition throughDanisco’snutrition food ingredientofferings, whichallow our solutions . Qualicon diagnostictestingtechnologies andDanisco’s food protection in food, improving qualityandminimizingfood wastethroughDuP reducepathogens We further tohelpcustomers now have opportunities health andnutrition, andenzymemicrobialexpressiontechnologies. improvements infood scienceandtechnology, food safety andprotection, further todrive and food safety diagnosticsprovide newopportunities ingredients andDuP Similarly, between Danisco’sinfood thestrong synergies leadership enabling thereductionoffossil fuel-basedfeedstocks . andchemicals,technology competenciestoproducenewbiomaterials the household, care, fabric andfood industries, ourjoint andwillleverage ofGenencorenzymetechnologyin usefor customers times andenergy . more sustainable transportation will continue toget specialfocus becauseofitsuniqueabilitytosupport withoutethylene glycol . de-icers optionsandbio-basedairplane environmentally thantraditional friendly thataremore toproducingcarpets a bio-basedchemicalcentral technologies andDuP willbenefitfromGenencor’s and Customers flagshipplatforms andchemicals. renewable bio-basedoptionsfor polymers and efficiencies, and separation, enable biomassextraction andenhance toreducetimemarket, experience operating improve productyields applications, takedesignand advantageofadvancedfermentation able fromanenhancedsuiteofenzymesfor todraw ahostofindustrial scientific expertise productsfor ourcustomers,transformative complementary andleveraging fossil fuelprocesses, andmorecost-effective higherperforming generating by for substitutingrenewableprocesses inmatureindustries materials DuP do hereandelsewhereinthisdocument. combined sustainabilitystrengthsandinnovations, whichwe have to tried commitments . into DuP phaseofourintegration Danisco 2010/2011fiscal year –and theearly objectives . for advancingourmutualcommitments andstrategies sustainability closely withournewDaniscocolleaguestoestablish asetofshared As we continue oursustainabilityprogress, we lookforward toworking DuP apremier$3billionspecialtyfood& Healthbusinesses ingredientsandfood toform safety business . segmentledby DuP reporting DuP DKK 700cashpershare On May 19, 2011, DuP opportunities future drive Synergies organization, support breakthroughinnovation inourproductsanddeliverorganization, solutionstoward theglobalmegatrends. support sustainabilitythroughoutourcombined todrive biosciences,and healthindustrial tremendousnewopportunities but offers ont’s newbiosciencepowerhouse hasthepotential torevolutionise ont’s Binetti,segment. Craig alsowillstandaloneasafinancialreporting ont’s ont, ontheseas-yet unknown future we cannotyet report improvements inhealthand further We willalsosupport ecause of the timing of this report – which covers the the –whichcovers Becauseofthetimingthisreport ioSciences to create a leading $1 billion Industrial Biosciencesbusiness thatwillstandaloneasaDu P Applied BioSciencestocreatealeading$1billionIndustrial We canhowever, shareourvision forour leveraging .
T o support customer sustainabilitygoals, o support we willbe ont’s globalpositioninsoy protein, soy ingredients, ont’s award-winning solutionssuchasBioPDO™, ont announcedthesuccessfulcompletionofitstenderoffer for Danisco’s outstandingcommonstockat . We have moved enthusiastically intothenextphase, Danisco’s integrating Genencorenzymedivisionwith DuP Inaddition, we willreduceprocessing ont’s JamesCollins. C ont DaniscoCellulosicEthanolLLC
Danisco’s withDuP FoodIngredientsbusiness isintegrating ont’s
P Binetti Craig commitments andactivitiesofDuP togetherthesustainability tobring work beginning theintegration the progressmadeagainstcommitmentsin2010/2011. thatcovers isproudtopresentthisreport The Daniscoorganisation B Industrial P Jim Collins & Health address theworld’s mostpressingchallengesinfood, health, andenergy Danisco acquisition, willcontinue seeking–andfindingthesolutionsto constraints, costs, material andhigherraw DuP population, bycontinue towardalarger afuturemarked greaterresource of ourproducts, building sustainabilityintoourbusiness models. throughthelife cycle helped toidentifytheimpactsandopportunities have comeatabettertime In fact, thecombinationofDaniscoandDuP solutions . combination ofDuP breakthroughs,the futuredemandrevolutionary whichiswhy the inwhichwe willoperate expanded sectors for Danisco’s valuechainsolutionstobeembeddedacrossthe andhealth–thereisopportunity In bothareas–bioscienceandnutrition Combining DaniscoandDuPont nutritional, andeconomicalbenefits. Solae business, whichprovides innovative soy productswithfunctional, toreducesalt,customers fatandsugarinfood productsandthroughthe leadership sustainability our continue to strive we as companies of both will the bring best organization combined the that expect we but coming year willbeabusy one, in2012. as onecombinedorganization resident, N resident, resident, resident, iosciences
his not only positions us as a world leader in nutrition leader innutrition This notonly positionsusasaworld .
utrition utrition
ont andDaniscowillresultinmorepowerful .
s separate companies,As separate life cyclethinkinghas
ont and Danisco and will report ont andDaniscowillreport utrition &Health, Nutrition ledby
The
. Butthechallengesof ont, empowered by the ont business could not ont business couldnot utrition ont’s existingNutrition We arenow ont financial ont financial
s we As we
.
meeting Ourfutur Peoplee challenges Stakeholders and strategies Stakeholders and strategies
Sustainability strategy development process
Risks, Stakeholder input opportunities Strategies Life cycle 2& material & targets management issues
10 SUstainability report 2010/11 Stakeholders and Strategies s eople P and and Strategie s r r Ou Stakeholder
Four integrated dimensions inform our strategies Four integrated and parallel dimensions inform sustainability throughout the Danisco value chain.
Stakeholder input Strategies and targets First, our value chain includes many diverse stakeholders, from Third, we are driven by our commitment to address global suppliers to consumers, whose views and concerns contribute challenges through strategic targets and sustainable solutions. to our understanding of sustainability risks and responsibilities. Life cycle management Risks, impacts, opportunities and material issues And fourth, we apply life cycle management into our value Second, we consider the risks and opportunities presented processes and use the concept to drive performance toward by a rapidly changing world and identified in concert with our our strategies. stakeholders as material issues. Together, these interconnected considerations help us recognize current and emerging risks and opportunities and set strong targets that align our business strategies with sustainability and guide specific initiatives.
Stakeholders and Strategies SUstainability report 2010/11 11 Stakeholders and strategies Stakeholder engagement Central to developing meaningful targets is ongoing and transparent dialogue with Danisco stakeholders. It enriches understanding of our sustainability impacts and areas for growth, while helping to focus our decision-making. Although we hear from stakeholders through many avenues during the year, in 2010 we also adopted a systematic approach to stakeholder engagement. We formed a Stakeholder Advisory Board (SAB) to help ensure that all relevant viewpoints are represented and to collect feedback and insights on our sustainability commitments, activities and performance.
In our new stakeholder approach, we analysed our stakeholders With some stakeholder categories such as investors, employees on the basis of their influence on our organization.T his helped and major customers, we will engage closely and frequently, us to identify how to engage them more effectively, yet more providing forums for their input and incorporation of their importantly to ensure shared value on both sides of the table. needs into our sustainability strategies. With other stakeholders We mapped stakeholders according to their interest and such as trade unions, academia, non-governmental organizations influence on today’s and tomorrow’s business, and defined (NGOs) and suppliers, we will engage on specific issues as engagement approaches. needed.
Stakeholder identification We recognize the importance of dialogue with key stakeholder groups that are important to our business success. Part of our stakeholder process is to review our stakeholder groups each year, and to identify the most important ones by asking ourselves these questions:
• Who does Danisco positively or negatively affect by our decisions or activities? • Who do we hear from on a regular basis? • Who can help us address specific impacts of our business? • Who would be disadvantaged if they were left out? • Who in the value chain is affected?
Other organizations • Non-governmental Local communities Governmental bodies organizations (NGOs) • Governmental organizations Investors and analysts • Industry associations • Intergovernmental organizations • Labour associations • Politicians and regulators Media and press • Universities & Institutes • Standardization bodies
R&D HR Communications
Communication and dialogue and Communication Suppliers Purchasing Sales Customers Retailers Consumers
Finance Production
Logistics
Communication and dialogue
12 SUstainability report 2010/11 Stakeholders and Strategies This is our tenth annual sustainability report – a tribute to our long-standing commitment to sustainability. LONG-TERM
Stakeholder Advisory Board We held our first Danisco Stakeholder Advisory Board While our 2010 meeting was useful in setting direction and (SAB) meeting in May 2010 while developing our 2009/10 confirming the important focus areas within our business, we s sustainability report. The identification of material issues in decided to develop a different approach in 2011. We again the light of our stakeholder input was extremely valuable used our materiality analysis as the basis for the discussion and in developing our sustainability strategies across our value synthesized a series of questions related to particular areas of chain. The board was comprised of respected individuals that challenge. The meetings were held over a period of weeks in
are representative of our broader stakeholder population. separate teleconferences with each member. Our stakeholder eople P and and Strategie s
Each member committed to at least one in person meeting interaction has helped us to confirm the position of issues r
and periodic consultations throughout the year. The SAB important to our business on our materiality matrix, and have Ou members were not compensated for their participation. provided direction for approaches toward our risks, impacts and opportunities throughout the value chain. Stakeholder Stakeholder Advisory Board Members Investor NGO Employees Sustainability Leadership Ole Buhl John Norbo Kaustuv Bhattachary Tom Knutzen Senior Socially Responsible Conservation Director Application Specialist Former CEO – Danisco A/S Investment Advisor, ATP WWF Denmark Danisco Brabrand Jeffrey Hogue Government Customers Ian Fairs VP of Corporate Sustainability Group Manager Confectionery Danisco A/S Victor Kjær Sanne Vinther Danisco Brabrand Head, Corporate Stakeholder Relations Manager Annette Hansen Citizenship Department Arla Director of Sustainability Danish Commerce Danisco A/S and Companies Agency Dr. Peter White Director of Sustainability Facilitator Retailer Procter & Gamble Preben Sørensen Kerstin Lindvall Partner Corporate Responsibility Senior Vice President Deloitte Corporate Responsibility ICA Sverige AB
Key stakeholder questions Building on the success of the first SAB meeting held in 2010, We also acknowledged a number of subject areas with we revisited the main stakeholder comments in our 2011 increasing stakeholder focus, including some that are meetings to determine whether we adequately progressed on entirely new: the issues, and to determine if they were still relevant . The revisited areas included the following: Stakeholder and consumer needs – Which emerging issues will be relevant for Danisco as a player in the food and Roles of SAB members – How should Danisco ensure that industrial biotechnology value chains? we are attaining the most value of SAB engagement? Local community investment and engagement – Is Danisco’s Sustainability strategy – How does Danisco maintain focus decentralized approach sufficient? Should we develop an on the right things when it comes to strategy setting? Are the approach that drives shared value creation? current focus areas still relevant? Impact of DuPont acquisition – How will Danisco secure Product innovation – How will Danisco align our innovation momentum during the pre- and post-acquisition periods? models to reap the benefits from the global challenges? This interaction resulted in fruitful discussions with alignment Supply chain – Does Danisco adequately manage risks in amongst the SAB members. A summary of the major points our supply chain? including our responses are detailed on the following page.
Stakeholders and Strategies SUstainability report 2010/11 13 Stakeholders and strategies
Danisco responses to stakeholder input We agreed with SAB members to address four key points over time and in this year’s report.
1. Sustainability strategy 3. Taxes There was a wide acceptance of our current sustainability At least two board members discussed the disclosure strategy with support for how we have aligned our of tax payments and strategy in our external strategies with our value chain. Several SAB members communication and sustainability reporting. The mentioned that having short-term targets would be discussion centered on the growing trend of tax beneficial to keep focus and direction toward the current payment disclosure and emerging shareholder long-term targets. resolutions demanding disclosure of tax payments and strategies for major corporations. Danisco response: We realize that we often do not communicate our short-term targets externally due to Danisco response: Tax payment is one of the important their granularity and sometimes complex nature. We parts of our businesses in the communities that we will need to align our current targets with DuPont, and operate. However, corporate tax payment alone does plan discussions on whether our short-term targets not adequately summarise the positive impacts that we should be included or not. In addition, we will continue have as a business on society as it also includes important to focus on our entire value chain, with an emphasis on aspects such as direct and indirect employment and the raw material suppliers with the launch of our Global associated money flows into society including employee Supplier Assessment and Approval System and by using taxes. Therefore we seek to stimulate the positive life cycle thinking in our new product development and economic impacts of our business on our communities innovation platforms. in many different ways and in the context of the communities that we operate in. Given this, we have 2. Diversity policies and commitments in place to ensure that we The board members discussed that gender diversity follow the legal tax frameworks and that we keep the in our workplace has been addressed by previous interests of our business and shareholders by paying the position statements, and support our work with taxes we are required to pay. We include all relevant and “Operation Chain Reaction”, an effort to increase the statutory tax disclosures in our annual report. representation of women in boards and senior manager positions in Denmark. However, several members 4. Local community investment and engagement discussed the need for an approach to support other The discussion centered on our local community types of diversity in our workplace. engagement and investment efforts and the difficulty we have experienced in consolidating our community Danisco response: We have communicated a strong activities at a corporate level. The SAB members position that we strive to hire the best person for the agree that Danisco is clearly focused on community job, regardless of race, color, creed, or gender. We have engagement and shared value in the communities that we not specifically set hiring quotas for diversity and will operate, but question whether the approach is strategic continually re-address the issue based on stakeholder enough to focus our efforts globally. input. At this point, only our SAB has raised this question, requiring further monitoring. Danisco response: While we do see value in having a corporate strategy for community engagement, moving forward we will need to align our approach with the DuPont model. We plan to contribute our community engagement data consolidation into the DuPont reporting process.
14 SUstainability report 2010/11 Stakeholders and Strategies K ey impacts, risks and opportunities s e
While life cycle management supports operational and product improvements, it is also integral to understanding our and Strategie P
s risks, impacts, and opportunities throughout the value chain. Combining life cycle assessment and stakeholder dialogue r
with the analysis of our corporate environmental footprint, we are able to focus on appropriate strategies and Ou ople priorities. In this way, our sustainability efforts are closely aligned with our key stakeholder needs in the global context, using sound data to safeguard against risks and to transform challenges into market opportunities. Stakeholder Focusing on the impacts of our value chain D anisco has confronted the daunting task of modeling our In terms of CO2 equivalents (CO2e), we estimate avoided environmental impacts across our entire value chain using emissions from our products in the consumer use phase at more our 2009/10 value chain data. The impacts evaluated relate than 6.5 million tonnes of CO2e per year, delivering significant to all environmental aspects of our value chain including: impact reduction benefits. raw material sourcing and inbound logistics; production, outbound logistics and business travel. The study was Apart from the contribution to climate change (global evaluated by Deloitte in connection with the third-party warming potential), 16 additional impact categories have assurance of this year’s sustainability report. In addition, been analyzed in the model. This analysis emphasizes the impacts associated with application and use of our products importance of raw material sourcing as it contributes more have been estimated. than 60% of the total environmental burden from cradle- to-customer. The analysis illustrates the following important The results demonstrate the greenhouse gas (GHG) emissions impact categories driven mainly by the use of fossil-based fuels related to our raw material sourcing are more than 2 times for energy production and use of land resources: larger than the emissions from our own operations. While the study focused on the impacts of the cradle-to-customer life • Climate change cycle, we have further estimated that the avoided impacts from • Depletion of non-renewable resources using our products in our customer’s and consumer’s product • Land use use, application and disposal phase are approximately 2.5 times greater than our total life cycle impacts from cradle-to-customer. The following graphic depicts the carbon footprint portion of the environmental footprint.
Corporate carbon footprint 59% 5% 26% 10 % ~2.5x avoided
Upstream activities Danisco Downstream activities
Stakeholders and Strategies SUstainability report 2010/11 15 Stakeholders and strategies
Key impacts, risks and opportunities from the corporate footprint study
Climate change Land use and agriculture A changing climate presents multiple challenges. First, we As the population grows, the need for productive, arable produce greenhouse gases indirectly from sourcing raw land for crops increases. Because we produce bio-based materials and directly from the energy used for processing products, Danisco depends on the continued security and and transporting products. Second, we anticipate that future sustainability of agricultural feedstocks to maintain and grow regulations and financial controls will sharply constrain our business. We are pursuing efficiencies in our use of carbon emissions and we are pursuing ambitious goals to agricultural raw materials and we increasingly use waste and reduce our climate impact and develop sustainable products by-products as our raw material sources. that reduce customer impacts as well. And third, we continue to monitor the effects of sea-level rise and changing As food and energy demands increase globally, the precipitation patterns on agriculture and the sources of competition for land used to produce local food, cash our raw materials. Our climate and energy strategies are crops, wood and biofuel feedstocks will escalate. To reduce described in the Operational efficiency section. More potential impacts associated with our own demand for raw importantly, the opportunities in delivering sustainable materials and to honour our commitment to responsible solutions for customer applications are discussed in the sourcing, we participate in initiatives such as the Roundtable Sustainable solutions section. on Sustainable Palm Oil (RSPO) and Round Table on Responsible Soy Association (RTRS), which bring together Depletion of non-renewable resources global organizations in response to the land conflicts, Our impacts on non-renewable resources result from energy deforestation and habitat loss associated with irresponsible use and the potential associated depletion of gas, coal and palm and soy oil sourcing. We also help to foster sustainable oil reserves. Potential declining fuel stocks and changes in agriculture through our membership in groups such as the energy prices are key risks that may affect our production European Food Sustainable Production and Consumption cost models. While we have strategies to increase renewable Round Table and the Roundtable on Sustainable Biofuels. In energy sourcing and to reduce energy use at our sites, fact, we have developed enzymes to support a sustainable we anticipate a greater impact reduction in the use of our biofuel industry based on switchgrass and waste products products in consumer applications. Danisco’s innovative from agriculture, which would minimize or eliminate the approach to develop bio-based products to reduce food current land use tensions between food and energy crops. waste, processing times and temperatures play a significant See the Sustainable sourcing section for more information. role in energy reduction in the food value chain. And our advanced biofuel technology allows an alternative to oil in enabling the use of bio-based, renewable feedstocks in the transport sector.
16 SUstainability report 2010/11 Stakeholders and Strategies “I believe sustainability is when business decisions are based on sound science and well-understood principles to deliver market facing benefits” VISION Jeffrey Hogue, Vice President of Corporate Sustainability
Other key impacts, risks and opportunities An important input to our identification of impacts, risks and opportunities is our stakeholder analysis and s Stakeholder Advisory Board consultation.
Water scarcity Food safety Fresh water is a vital resource already in scarce supply Our customers increasingly require that our manufacturing eople
in many parts of the world, with many areas confronting sites have a food safety management system approved and P and and Strategie s increasingly severe water shortages. As water is essential controlled by a third party. We have decided to follow the r
to healthy communities, productive agriculture and to the standards set by the Global Food Safety Initiative, which Ou bio-based materials from which we make our products, it is recognises globally respected food safety management critical for us to understand the effects of water scarcity on systems such as the British Retail Consortium (BRC) our business. As a first step, we have mapped our operations standard and the Food Safety Standard Certification (FSSC against current and future water-scarce regions. Our water 22000). We are one of the first ingredients businesses Stakeholder reduction efforts will prioritize actions and investments in to introduce the BRC standard. Initially, the standard the most water-scarce areas. See the Operational efficiency applied only to food producers, but we believe this type of section for more information. requirement is also relevant further along the supply chain – in 2008, we decided to obtain certification for our food Global disruptions and feed ingredients manufacturing plants. Today, 80% of our As recent years have illustrated, global businesses can manufacturing plants have achieved food safety certification, be affected by a host of disruptions – volcanic eruptions, well above our target of 60% certification by 2011/12. earthquakes, flooding, political unrest and prolonged strikes. Product health claims These and other regional disruptions can affect raw material Danisco supports the goal of accurate product claims based on sourcing, production, storage and distribution, as well as customer ability to receive our products. Danisco’s food strict criteria. With the expertise of our health and nutrition ingredients, and particularly our cultures, which must be research & development group, we deliver scientifically kept cold, can be adversely affected by delays in reaching our sound human health and efficacy studies that document the customers. Our new logistics food ingredients organisation specific health benefits of our patented probiotics and other (LOGFI) is finding creative solutions to overcome these ingredients. Health claims became more complicated with disruptions. See the Operational efficiency section. the 2007 European Union (EU) regulation on nutrition and health claims and the food ingredients industry has struggled to understand the European Food Safety Authority (EFSA) expectations regarding these requirements. Our work with industry peers during the past few years has resulted in greater clarity from EFSA on the required scope and design of the studies. To meet the new health claim requirements, we have undertaken dozens of additional studies. While some of our studies supporting health claims concerning pectin, Vitamin K, phytosterols, Xivia, Litesse and guar gum have been approved, we are further documenting our probiotic claims.
Stakeholders and Strategies SUstainability report 2010/11 17 Stakeholders and strategies
E numbers Biofuels E numbers are internationally recognised code numbers Danisco believes that biofuels play an important role in reducing commonly used in Europe for food additives to avoid listing our dependence on non-renewable fossil fuels. Biofuels can play long chemical names on food labels. An E number indicates a significant role in both providing alternatives to fossil fuels in that a particular food additive meets stringent European transportation and in reducing greenhouse gas emissions. As a Commission safety assessment requirements. Despite world leader in biotechnology with expertise in biofuels, we are this, consumers have increasingly come to see products investing significant financial and human capital in developing a with E numbers as being unnatural. In response, some healthy, efficient ethanol industry to ensure sustainable energy food manufacturers have begun including “natural” before sources for the future. the ingredient name, preferring to say natural pectin, for Despite the many benefits of biofuels, this is a controversial example, rather than E 440. topic. Some stakeholders have expressed concerns that: Some of Danisco’s food ingredients have E numbers and many of our customers would like to use the word natural • Land used to grow food will be converted to grow biofuel instead. However, because no legislation defines the word crops, leading to competition for limited arable land in this context, the industry has agreed to follow the EU • Natural habitats will be destroyed as forests are definition of natural for food colours. This process-based converted to farmland definition allows simple physical processes such as boiling • Food prices will rise and drying but excludes more complicated processes such as • The energy used to produce biofuels could offset their chemical synthesis. environmental benefits We are sensitive to the needs of our customers and First-generation biofuels use starch-based food crops such consumers and respect that concerns exist about E number as corn and sugar cane, while second-generation biofuels labelling. We are reviewing all our E number ingredients use cellulose from agricultural waste and non-food crops to determine whether we can modify the recipe or the like switchgrass. We contribute products, solutions and manufacturing process to support a natural label. The expertise to both of these industries and provide our sustainability profile of each food ingredient is complex, best-in-class enzymes to develop first-generation biofuels of course, and changes in one area may have unintended because of the important role they play in creating a consequences, such as increased energy use. We are market for ethanol, promoting energy independence and working to balance these competing needs as we evaluate advancing biofuel technology. We believe, however, the most possible modifications over the next few years. sustainable future for ethanol includes non-food cellulosic feedstocks. These second-generation fuels are not yet ready Genetically modified organisms for commercialization, but the emerging industry is already Danisco believes in the potential of modern biotechnology to benefiting from the market, infrastructure and knowledge provide innovative and cost-effective solutions that address associated with current first-generation biofuels. the food needs of the world’s burgeoning population. Genetic engineering can create genetically modified organisms G( MOs) with desirable traits such as pest-resistance or enhanced nutritional value. However, we are sensitive to the controversy regarding GMOs and genetically modified microorganisms (GMMs), and adhere to differing customer needs and legal requirements in this area. We meet all legal requirements for labelling and traceability for food and feed produced from or containing ingredients using GMO/GMMs.
18 SUstainability report 2010/11 Stakeholders and Strategies Case study s eople P and and Strategie s r r Ou Stakeholder
Grindstedværket mercury exposure cases In the 1960s, 1970s and early 1980s, Grindstedværket – which later became part of Danisco – produced vitamins in Grindsted, Denmark until vitamin production was taken over by BASF in 1982. Production of these vitamins involved the use of mercury as a catalyst, and some employees from that time have filed claims for work-related injuries or diseases in connection with mercury exposure. Work by the National Board of Industrial Injuries continues in the processing of these claims.
Danisco has encouraged all former and current employees who believe they have suffered such work-related injuries or diseases to contact the National Board of Industrial Injuries and submit a claim for compensation.
While we are not legally obligated to offer compensation, we want to ensure that we live up to our social and ethical responsibilities, as announced at the Danisco annual general meeting in 2008. When all claims have been processed, we will announce plans for offering additional compensation for claims validated by medical experts and the National Board of Industrial Injuries as having been work-related injuries resulting in a loss.
Only claims related to mercury made by those employed at Grindstedværket during the vitamin production years will be recognized.
Pollution around the Grindsted plant In 1989, the former Grindstedværket became part of the newly named Danisco. For more than 50 years before that, the Grindstedværket site in Grindsted, Denmark produced many different kinds of products, including pharmaceuticals and later vitamins. Only as part of Danisco did food ingredients become the plant’s main focus.
Because regulatory requirements around wastewater treatment and the disposal of hazardous chemicals were less sophisticated in the early days at Grindstedværket, the ground and water around the plant became contaminated with various pollutants. These pollutants have since been contained and mapped, and Danisco continues to work with The Region of Southern Denmark and other local authorities to monitor the area for any additional problems.
Stakeholders and Strategies SUstainability report 2010/11 19 Stakeholders and strategies Focusing on what matters To further understand and prioritize our sustainability work year after year, we have undertaken a process to evaluate the large number of stakeholder inputs and the impacts, risks and opportunities identified in our corporate footprint and impact analysis. The output of this process allows us to evaluate our current strategies, and to create new ones if needed.
For the past two years, we have conducted a systematic of interest or concern that any one stakeholder group may process to evaluate the issues that are material for our have. Items that are of high concern to our most important organization in the context of our business. The effort, which stakeholders, customers, and employees may rank high on the includes various steps, begins with a collection and cataloging interest continuum. of the inputs to identify major trends. When possible we strive to categorize trending items in subject categories. The inputs to this process include: our corporate footprint/LCA model; Impact on our organisation customer interactions; a risk analysis completed in our ethical supplier system, or Sedex; the various analyst questionnaires, We further our assessment by evaluating the issues that like SAM, EIRIS and CDP; analysis of competitor and customer affect our licence to operate and could have significant focus points; direct short-term financial risks; and our own impact on our business, employees, and communities. We performance over the previous year. also supplement the analysis by discussing and determining whether the issue falls under our control or not. The resulting issues and topics are evaluated by examining several factors in the context of our sphere of influence, for As we develop our materiality matrix we consult with leaders instance, the level of interest the issue has to our stakeholders in our organization to determine whether the ranking is correct. and the relative impact on our organization. We enhance the process by discussing the material issues with our Stakeholder Advisory Board (SAB), made up of individuals who are thought leaders in our identified stakeholder categories. This process does result in modifications and reassessment, Stakeholder interest from time to time, but the process, in itself is robust, leading to In our matrix we rank the issues not only based on the stronger strategic direction. number of stakeholders that raise the issue, but also the level
20 SUstainability report 2010/11 Stakeholders and Strategies Energy consumption • Innovation • Climate Resource HIGH • change • depletion Stakeholder Occupational • • engagement Water scarcity • health & safety Employment issues Clear Ethical Food • • communication • issues • safety Health & s s takeholder Biodiversity • s & land use • Nutrition Supply chain • Customer • Sustainable indices relations
Diversity • eople P and and Strategie
• Management s r Networking & public policy • commitment
• Ou M EDI UM
ern to f Con c ern to Grindsted Noise Knowledge
• • • Human health Stakeholder mercury case & odour management • Packaging • L e v el o
Waste including wastewater • LO W LOW MEDIUM HIGH Current or Potential Impact on Danisco
Materiality assessment matrix Our materiality assessment guides our development of sustainability strategies and targets.
Stakeholders and Strategies SUstainability report 2010/11 21 Stakeholders and strategies Sustainability strategies and targets Our ongoing refinement of material issues supports Danisco’s continued shift to a new paradigm – away from a focus on isolated reduction targets, toward an approach where we consider the impacts and opportunities throughout product life cycles. As we do so, we build a firm foundation for our sustainability strategies and targets using the same scientific and data-driven approach that guides our product development.
Our current strategies were developed in 2009 to align our Converting strategies into targets sustainability strategic review with our value chain and the Our targets toward the value chain strategies have business. Through involving a wide variety of colleagues across developed from the focus group work and have been Danisco including our senior leaders, the three simple value endorsed by technical experts across our divisions. chain based strategies were developed to address sustainable However, not all of our targets have been developed in sourcing, operational efficiency and sustainable innovation and this process. For instance, our employee engagement product offerings. and development targets have been developed out of corporate human resource strategies. Likewise, our Ownership at the top community engagement and investment targets are set by A critical part of the strategy development process has been the sites in the local communities where we operate. to assign responsibility and accountability for the strategies across the organization. To ensure effective execution, our Moving forward Executive Committee assumed ownership of the value As we progress on our structured plans to deliver the chain strategies including a commitment to allocate the strategies, we plan to further engage the organization by necessary resources. Several focus groups emerged and identifying champions in our business to lead the charge are evolving to develop structured plans for delivery. The through our line organization. progress is reported quarterly to the Executive Committee and board as part of the management review process.
Sustainability strategies to address value chain impacts
Sustainable sourcing Operational efficiency Sustainable offerings Protect our resources and Improve resource efficiency Provide innovative, bio-based ecosystems and enable our to create value for product offerings that improve business to contribute to a our stakeholders the overall sustainability profiles more sustainable future of our customers
22 SUstainability report 2010/11 Stakeholders and Strategies s eople P and and Strategie s r r Ou Stakeholder
Stakeholders and Strategies SUstainability report 2010/11 23 Stakeholders and strategies
T argets and progress We evaluate our progress at least annually to determine the need for adjustments or new targets. All future targets will be aligned with the DuPont business and sustainability Operational strategies. The following table summarizes our current targets and progress. efficiency targets
OPERATIONAL EFFICIENCY TARGETS AND PROGRESS 2010/11 Baseline Category Target Target year year Progress
R educe energy consumption by 10% E nergy 2020 2009/10 Energy consumption was reduced by 0.4% • per revenue Renewable I ncrease renewable energy by 20% 2020 2009/10 Renewable energy was increased by 3.6% energy • R educe water consumption by 20% Water 2020 2009/10 Water consumption was reduced by 2.1% • per revenue
R educe CO2 emissions by 20% CO2 emissions 2020 2009/10 CO2 emissions were reduced by 12% • per revenue
Health and A chieve fewer than two lost-time 2012 N/A LTI frequency increased to 3.8 safety • injuries per million working hours
Social We suspended our efforts due to T o re-address training needs based responsibility / the DuPont tender offer. Training will on risk and ensure 100% of high risk 2011 2009/10 Code of commence with the DuPont code in • employees are trained Conduct 2011.
Danisco Spirit was conducted in August Employee T o conduct an annual employee 2010. The response rate was 86%. engagement engagement survey and become best Ongoing N/A The overall employee engagement survey • in class for external benchmarking rate was 3.88, compared to external benchmarking at 3.97.
The deadline for completing Danisco Danisco 70% of employees with an on-line Dialogue is on 30 June 2011. 60% of Ongoing N/A Dialogue • access completes Danisco Dialogue employees with on-line access completed the process per 30 April 2011.
Target redefined. A decision was made T o develop a sustainability assessment Sustainability to increase third party assessments and programme based on a risk 2010 N/A assessment to leverage the findings of customer and • assessment approach divisional assessments.
T o develop tools to make quick life- Target in progress. Embedding life cycle Life cycle cycle decisions in innovation, chemical 2011/12 2009/10 thinking into product stage gate process assessment and process selection without the • was initiated. need for comprehensive LCAs
T o conduct at least six peer reviewed Target in progress. Fourteen LCAs were Life cycle LCAs for pectin, locust bean gum, 2011/12 2009/10 completed of which four were peer assessment freeze-dried and frozen cultures, • reviewed. textile bleaching and xylitol
T o achieve food safety certifications at 60% of our food ingredient 76% of the sites have achieved a food Food safety 2011/12 2008 • production sites that supply an safety certification. external customer
• O n track or completed • P artially on track • O ff track or not completed
24 SUstainability report 2010/11 Stakeholders and Strategies Sustainable s sourcing targets
SUSTAINABLE SOURCING TARGETS AND PROGRESS 2010/11 eople
Baseline P Category Target Target year Progress and Strategie year s r r Ou Raw material Life Cycle Inventories in development. Sustainable To develop focus groups and set up Global Supplier Assessment and Approval
2011/12 2009/10 Stakeholder sourcing • targets for sustainable sourcing System (GSAA) in pre-launch stage. Detailed analysis of major raw material streams completed.
To complete conversion of our 7 of our manufacturing plants have been Palm oil palm oil consumption to sustainable 2015 2009/10 certified to RSPO standards. • sources
Continue actively in RTRS and work To complete a strategy plan for with supplying partners to promote Soy meal and oil conversion of soy bean oil to 2011/12 N/A sustainability and implement solutions to • sustainable sources be offered to our customers.
To develop and implement a system GSAA in developed and in pre-launch Supplier to manage supplier and raw materials 2010 /11 2010 /11 stage. Full implementation will take at management including approval processes and risk • least 1 year. assessment
To complete a strategy and identify Continue to work with supplying partners Packaging focus areas for conversion to more 2011/12 2010 /11 to promote sustainability and implement • sustainable packaging solutions to be offered to our customers.
Sustainable innovations/ offerings targets
SUSTAINABLE OFFERINGS TARGETS AND PROGRESS 2010/11 Baseline Category Target Target year year Progress
Developed product sustainability criteria which are integrated into our innovation stage-gate system. Sustainable To develop focus groups and set up 2010 /11 2009/10 Conducted 7 screening level LCAs offerings • targets for sustainable offerings related to the application benefits of our products. Allocated 2000 hours of work by our application scientists for 70 of our sustainable solutions.
• On track or completed • Partially on track • Off track or not completed
Stakeholders and Strategies SUstainability report 2010/11 25 Stakeholders and strategies Embracing a life cycle approach to sustainability Like many companies with a globally diverse network of stakeholders including our suppliers, distributors, transporters, and customers, we recognize that most of our environmental and social impacts take place outside of our fence-line.
The diversity and complexity of our value chain requires a life Tools and techniques cycle approach to holistically identify and mitigate the impacts An important tool to help us attain valuable knowledge about associated with our products. Our approach influences our the consequences of business decisions is Life Cycle Assessment decisions and actions on three levels: (LCA). We actively use LCA to assess the environmental burden and key impacts of our products, and to create simple tools that Strategy enable our employees across our organization to develop more We promote life cycle thinking to maintain focus on sustainable products and processes. environmental, social and economic impacts throughout our value chain. Our strategy also inspires our thinking and provides The combination of the three, in practice, helps us to a compass for our actions. catalyze collaboration across the organization to improve our sustainability performance and business. Management practices To enhance our strategic direction we employ Life Cycle Management (LCM) to provide structure and processes to aid in business decision-making and continuous improvement.
Life cycle management is the way in which sustainability is made operational throughout our organization and our value chain. NOTABLE
Applying Life Cycle Management to the business cleaner production, green distribution, and integration of Because life cycle thinking is a large part of how we set our sustainability in marketing and support to customers. This strategies, managing the approach in our organization requires approach combined with our already strong stakeholder discipline. In our LCM model, we recognize the relationships engagement, advocacy efforts, and collaboration with other s between our vision and how we operate our business. The players in the value chain is intended to improve synergies and model drives collaboration and ultimately results in market create a market pull towards sustainability. growth and value. The most impactful strategic decision of our life cycle approach
In practice, LCM has led us to develop simple tools that can is how we have leveraged LCA toward our customers using a eople P and and Strategie s
support innovation and product development in creating more market facing approach. This supports our assertion that our r sustainable solutions. This effort – or what we call ‘Innovation products are not only simple ingredients used in our customers’ Ou 4 Sustainability’ – will be a key element of how we focus and products, but key enablers for reducing impacts across the entire prioritize innovation to meet future challenges. value chain. In this context, we can differentiate our offerings and communicate, with sound and science-based data – enabling
Likewise, we are developing several tools and practices that our customers, retailers and ultimately the consumers to make Stakeholder support sustainable procurement, sustainable engineering, informed choices.
Our approach to Life Cycle Management
Product & market oriented sustainability strategy
Sustainable Sustainable marketing Leadership C y procurement & support fe c i l L e Sales & application Procurement Life cycle thinking Product development Production Sustainable “Innovation 4 engineering & Sustainability” Distribution cleaner production (LOGFI)
Management
Green distribution
Stakeholders and Strategies SUstainability report 2010/11 27 Sustainable sourcing
Top six agricultural raw materials
Corn-based carbohydrates 50% 3Citrus peels 19% Palm oil 12% Seaweed 10%
Soy meal & oil 6% Canola/ 3% rapeseed oil
28 SUstainability report 2010/11 Sustainable Sourcing rcing u eople P 60% r Ou
of the total So tainable us environmental S burden
The challenge of a diverse, global, agricultural supply chain Danisco’s upstream supply chain is complex and global – we work with approximately 2,000 strategic raw material and packaging suppliers spread across the globe ranging from large multinational corporations to small, independent farmers. We source materials from large commodity markets as well as small local markets – all of which require an assurance that our materials are gathered in ways that protect both natural and human resources and minimize any risks to our business. In fact we have recently identified that over 60% of the total environmental burden from cradle-to-customer is related to our raw materials.
Focusing on the right things The bio-based materials obtained from suppliers who share allow us to focus and prioritize. We have also assessed our commitment to high social and environmental standards the environmental impacts of our raw materials using life are the building blocks of all of our products. In this light, cycle assessment which has furthered our understanding we have focused on assessing the risks in our global supply of our upstream supply chain. These efforts will also help chain across many critical business areas. We developed us to supplement our participation in multistakeholder and implemented a new supplier assessment and approval initiatives like the Roundtable on Sustainable Palm Oil. system this year to support these commitments and to
Sustainable Sourcing SUstainability report 2010/11 29 Sustainable sourcing Key impacts of our raw materials In 2011, we undertook efforts to further understand the sustainability impacts of our raw material streams in two dimensions. First we launched our Global Supplier Assessment and Approval (GSAA) system which will allow us to more systematically understand environmental, social and financial impacts and risks in our supply chain. Second, we completed our analysis of our global value chain with a specific focus on the environmental impacts of our raw material sourcing using Life Cycle Assessment (LCA).
In our corporate environmental footprint, we identified our supplier management in the next years and to reduce that the major impacts related to our raw material the potential risks identified in our assessments. sourcing are related to land use, global warming and depletion of non-renewable resources. Other impacts To minimize transportation impacts and costs, we have related to water use and toxicity are also potentially strategically located our manufacturing sites near our raw important - but the effects of water use are highly material suppliers. This strategy supports the local economies dependent on the source location of the raw material. and provides employment and associated financial benefits to our local communities. As we are a global business, In addition to the analysis completed in our corporate purchasing from local sources is not always possible. In all environmental footprint, we also strive to evaluate the cases, we employ our supplier risk management processes social aspects related to human rights, labour issues, impacts and leverage our strong relationships with our suppliers from conflicts related to land rights, rural migration and to minimize impacts to our business. Sourcing locations, indigenous peoples rights. We have incorporated our major impact/risk areas and our approaches to reducing assessment into our new supplier system. The system, risks in our upstream supply chain are detailed below. or GSAA, will support our efforts including the launch of a new Supplier Code of Conduct. We hope to advance
citrus peels Canola/rapeseed oil
Major growing regions Major growing regions Mexico, South America Europe, Canada, China, India
Major impacts/risks Major impacts/risks Potential changes in climate and precipitation levels Potential losses in biodiversity through increased affecting the orange and lime harvests. Social issues plantings and land conversion. Potential changes in related to market fluctuations resulting in crop climate and precipitation levels affecting the canola/ switching (for example to sugar cane). rapeseed harvests.
Our approach Our approach Working with farmers to improve citrus farming As canola/rapeseed oil is a commodity and currently agricultural practices and productivity. Supporting no multistakeholder initiatives exist to address the the University of Colima in Mexico to address sustainability aspects, we have focused on items sustainable agricultural practices related to water, within our sphere of influence, such as improvement fertilizer and reuse of crop residues. of processing efficiency.
30 SUstainability report 2010/11 Sustainable Sourcing Palm oil soy meal and oil
Major growing regions Major growing regions Southeast Asia, Africa, South America North and South America, China, India
Major impacts/risks Major impacts/risks rcing Significant amounts of palm oil are grown in areas Over the past year, drought conditions in China and u with high biodiversity, for example, tropical forests. Latin America effected crop yields. In addition, the eople P
This involves the conversion of peat land, which also increased use of soybean oil in biodiesel production r causes significant greenhouse gas (GHG) emissions. could affect land use. Ou Adverse weather conditions experienced in key So tainable us regions could affect crop production over time. Our approach S Engaging in multistakeholder initiatives like the Our approach Round Table on Responsible Soy Association (RTRS). Engaging in multistakeholder initiatives like the Ensuring raw material efficiency in our production Roundtable on Sustainable Palm Oil (RSPO) and processes to minimize the use of soy meal and oil. committing to the use and production of RSPO certified products by 2015. We have attained RSPO certifications for 7 of our manufacturing plants by third-party auditors.
seaweed corn-based carbohydrates
Major growing regions Major growing regions Asia, Europe, South America North and South America, Europe, China, India
Major impacts/risks Major impacts/risks Seaweed production does not involve land Potential losses in biodiversity through increased occupation or transformation. However, there are plantings and land conversion. Potential changes potential risks of over-harvesting requiring sustainable in climate and precipitation levels affecting corn cultivation practices. Changes in water temperature, harvests. Competition for biofuel production and salinity, storms, and tidal patterns may affect yields. other higher value crops.
Our approach Our approach Working with farmers to improve farming As corn is a commodity and currently no practices and productivity. Restoration of seaweed multistakeholder initiatives exist to address the habitats and replanting of stocks. Collaboration sustainability aspects, we have focused on items with local governments through the Chilean within our sphere of influence, such as improvement Fishery Development Institute. of processing efficiency.
Sustainable Sourcing SUstainability report 2010/11 31 Sustainable sourcing R obust approaches enable impact and risk reduction Palm oil is one of the key raw materials that we purchase by volume. Despite this, our share of the global market for raw materials such as palm and soy oils is marginal. The most effective way for us to influence farming practices for these commodity crops is by working through reputable, third-party organizations. Danisco is a member of two multistakeholder organizations seeking to promote responsible production – the Roundtable on Sustainable Palm Oil (RSPO) and the Round Table on Responsible Soy Association (RTRS). Supplier and material assessment and approval We work hard to ensure the high quality of the raw materials The sustainability questionnaire is mandatory for all suppliers and packaging we purchase as well as the ethical standards and covers the following subjects: of our suppliers. As a food ingredients supplier, we have a long-standing commitment to meeting the food industry’s high • Sustainability strategy and established targets standards. We bring this same focus on quality to our non-food • Energy use and renewable energy sourcing sourcing work as well. As we work with thousands of suppliers • Compliance with UN conventions and other international spread across the globe, we need a reliable, thorough system norms on human rights for communicating our expectations to our suppliers and • Environment, health and safety training assessing and managing the risks in this area. • Environmental management systems
From fragmented to systematic Additional guidelines and procedures accompanying this process Our previous supplier management system was fragmented. include mandates to agree with our General Requirements Suppliers were often selected for audits based on the volumes for Raw Materials and Supplier Code of Conduct. We have we purchased from them rather than on their risk of being also integrated the country-level human rights risk information substandard. A milestone achievement in 2010/11 was our developed by Amnesty International. development of a Global Supplier Assessment and Approval system (GSAA) for our strategic suppliers. All of our businesses Creating shared value will use this standardized, web-based system and will be able Responses to all questionnaires are evaluated by the system to track the assessment and approval workflow. The system and the approvers to identify areas of concern to determine covers raw materials, packaging and toll manufacturers, and whether the supplier should be audited. When we identify enables the examination of risks related to business continuity, issues as a result of an audit, we will work with our suppliers to environmental impacts, social/ethical aspects, product safety, resolve the issue. quality and other risks. Over time we plan to use the system as a tool to identify The foundation of the system is a process whereby suppliers supplier collaboration and engagement opportunities, and to are requested to complete a series of questionnaires relevant develop even stronger relationships with our key suppliers. to the scope and nature of their operations. Supplier assessment and approval process
Suppliers Questionnaires Audit of critical and raw Risk and Approval suppliers materials documentation assessment
32 SUstainability report 2010/11 Sustainable Sourcing Danisco is the world’s number one producer of emulsifiers. The vegetable oils that we purchase are a key part of these ingredients. Fact
Working on the GSAA system with people from different departments, we all brought different perspectives but our
goals were the same. I have learned so much about rcing Danisco by working together as a team. It was a great u eople P
experience for us as individuals and as a company.” r
John Murphy, Business Process Manager, Genencor Global Supply Chain Ou tainable So tainable us S
Case study
Participating in multistakeholder organizations – sourcing sustainable palm oil Palm oil is a key component of our emulsifiers, which bind oil and water together and allow our customers to eliminate trans fat and to reduce the fat and salt content in their offerings. The dramatic rise in worldwide demand for this widely used oil has led to pressing concerns about deforestation, habitat loss and greenhouse gas emissions associated with the conversion of forests and peat lands to palm plantations in Southeast Asia.
In 2004, Danisco joined a diverse group of stakeholders working through the Roundtable on Sustainable Palm Oil to develop global standards and a credible certification programme for sustainable palm oil. The RSPO is a non-profit association that unites stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs – to develop and implement global standards for sustainable palm oil.
To ensure the traceability of sustainable palm oil, the RSPO certifies the entire supply chain from plantations to end users. Seven Danisco manufacturing plants have recently achieved RSPO certifications through third-party audits, building on the self-assessments the plants conducted the previous year.
Listening to our customers “At Danisco, we work to integrate sustainability into our business model. Customers are asking a lot of questions at the moment, and we can contribute to improving the level of sustainability of their products. The certification of Danisco’s sites is an important step in the process and shows our customers that we have listened to them. Danisco is a first-mover in this area, so now we will focus on turning it into concrete business opportunities,” Lionel Flutto, Vice President - Enablers
Danisco’s goal is to source 100% certified sustainable palm oil by 2015. We continue to work closely with our suppliers to ensure high product standards and to address the larger issues associated with palm oil production. A similar initiative, The Round Table on Responsible Soy Association (RTRS) is progressing slower than the RSPO. However, we engage our main soy-based product suppliers regarding the sustainability of their operations.
Sustainable Sourcing SUstainability report 2010/11 33 Sustainable sourcing
Case study
Collaboration yields sustainable supply
A look at how we obtain our seaweed illustrates both the global nature of our supply chain and the breadth of our efforts to minimize natural resource impacts and as well as on commitment to work with suppliers to improve their methods.
We purchase red and brown seaweed to extract carrageenan and alginate, respectively. These thickening and stabilizing agents are used by our customers to reduce sugar, fats and carbohydrates to produce healthier foods. Our brown seaweed sources span the globe with supplies coming from sources in the northern and southern hemisphere. There is a range of harvesting methods as well. In some places, seaweed that is cast ashore is simply gathered from the beach while in other locations it is harvested wild or farmed. Red seaweed comes to us from Indonesia, Malaysia, and China and we are investigating new sources in eastern Canada.
With such variety in the sources and gathering methods for this raw material, our seaweed strategy requires us to take action on diverse fronts to ensure a sustainable supply. To relieve stress on existing stocks, we are investigating new sources of brown seaweed in the Outer Hebrides, the Faeroe Islands and western Ireland. We initiated a successful re-population project in Chile in 2005 and are collaborating with competitors and local governments through the Chilean Fishery Development Institute.
Our main concern with the local processing of our brown seaweed supplies is the quality of the effluent from on-site wastewater treatment plants. Danisco has been coaching suppliers and conducting mini-audits to assess and improve their methods. We also conduct audits and mentor suppliers on a range of environmental, health and safety practices.
34 SUstainability report 2010/11 Sustainable Sourcing Locust bean gum, used as a thickening agent, comes from Carob trees in the Mediterranean. These trees grow long pods that take a year to ripen, and contain Notable the seeds that give us our locust bean gum.
Our raw materials in action Danisco offers a range of bio-based ingredients that found in popular consumer goods around the globe. Our contribute to the high quality products that manufacturers ingredients enhance the taste, texture and nutritional profile require. We use natural raw materials, such as vegetable oil of processed foods, and often help extend the shelf life and seeds in our products. And we support our wide range of the final consumer product preventing food waste and of products with technical services including sustainability reducing other environmental impacts. rcing u support to create innovative, less impactful solutions eople P
FROM RAw MATERIALS TO FINISHED PRODUCTS r Ou
Raw materials Danisco products Consumer products So tainable us S
Vegetable Modification Emulsifiers oil
Locust bean gum Citrus peel Extraction Hydrocolloids Guar gum
Corn Barley Fermentation Enzymes Sugar
Milk powder Whey powder Fermentation Cultures Yeast sugars
Wood Xylitol based Extraction (Xivia) materials
Sustainable Sourcing SUstainability report 2010/11 35 Operational efficiency Operational efficiency
Key environmental performance indicators 2010/11 40.4% 3.6% 12 % % 2.1
Energy Renewable CO2 Water energy
36 SUstainability report 2010/11 Operational Efficiency eople P r r Ou operational efficiency operational 10% of our total value
chain CO2 emissions come from our plants
Challenges in optimizing efficiencies after strong 3-year performance Although the manufacturing phase of our value chain represents less than 10% of our total environmental burden, it is where we exert the greatest degree of control and can produce the most immediate sustainability benefits. Since 2007, we have experienced the benefits of an impressive decrease in all of our Key Performance Indicators (KPIs) leading to water reduction of 26%, carbon dioxide emissions reduction of 18%, and energy consumption reduction of 20%. At the same time, we experienced a decrease in our safety and health KPI by 26%. In this period, many low-hanging fruits were harvested, significant investments were made and additional focus on behaviours was emphasized. The upcoming challenge in achieving our 2020 targets will rely on more intensive investments, deeper analysis of our processes, and alternative approaches to drive the next step change in our performance.
Focusing on the right things Throughout Danisco’s manufacturing facilities, we are environmental performance of our own operations, from increasingly applying life cycle thinking and management material selection and processing to packaging, distribution, to optimize production processes, redesign work-flows, and waste management. The combination of these two replace equipment, enhance efficiency in the use of raw approaches with strong management support, will allow materials and resources such as water and energy and us to prioritize our investments, make more informed minimize emissions and waste. We also apply a management decisions, and reward the behaviours of colleagues engaged system approach to assess, improve, and track the in achieving our performance targets toward 2020.
Operational Efficiency SUstainability report 2010/11 37 Operational efficiency O ur environmental approach As a supplier of bio-based ingredients, we recognize that the health of the environment is inextricably linked to the health of our business, our investors, and our shared society. Danisco’s sustainability approach extends beyond traditional environmental compliance and protection to encompass innovative practices and strategies that demonstrate our leadership in this area. In this light, our 2020 targets are supported by a three dimensional foundation of Life Cycle Assessment (LCA), production toolboxes, and management systems to help us identify and plan improvements. This year, we set new global targets, focusing on improving performance in three key areas: energy consumption and renewables, greenhouse gas (GHG) emissions, and water management.
Identifying Planning and tracking
Life Cycle Assessment Production toolboxes LCA is a critical tool used to help us identify To clearly understand the impact of our and focus on the critical impacts of our decisions, we use Production Toolboxes to production processes to the granular level. observe and track actual performance over Through our modelling efforts, we are able to time, and under real production conditions. identify the most impactful processes. Inside In the past year, we have optimized our our fence line we increasingly use LCA as a Energy Toolbox to predict expected energy tool to support our decisions when it comes to reductions on a project-by-project basis. The investments, raw material selection, packaging toolbox is used to track and manage process and process optimization. It also allows us to improvements and investments over time and avoid unintended trade-offs with other types of to intervene when expected results do not impacts across the life cycle. meet predicted values. The Production Toolbox model will be expanded to include water in the future.
Improving
Management systems To ensure continuous improvement of our identification, planning, and tracking processes described above, we utilize a holistic management system approach. Our sites maintain and improve environmental performance by conducting regular internal audits, sharing best practices and facilitating external audit processes. The management system approach allows a feedback mechanism to our LCAs and the Production Toolboxes to influence future decision-making around improvement actions and investments. To promote global consistency and drive higher performance, we support rigorous third-party certification programmes, such as ISO 14001. Of our 48 production sites, 23 have achieved certification to the ISO 14001 environmental management standard. With seven sites pending approval, we expect to achieve a 63% certification rate by 2012.
The Danisco Executive Committee reviews the company’s progress toward Oversight established sustainability targets each quarter.
38 SUstainability report 2010/11 Operational Efficiency Corporate carbon footprint As part of the input to our climate strategy, we have modeled the corporate carbon footprint, which includes the eople
greenhouse gas emissions from all upstream activities including inbound logistics of raw materials and chemicals P (upstream scope 3), direct and indirect emissions related to our production sites (Scope 1 and 2), as well as greenhouse r gas emissions for outbound logistics (downstream scope 3). In addition, impacts associated with application and use Ou of our products have been estimated. operational efficiency operational Corporate carbon footprint – input for our climate strategy The study which represents the financial year 2009/10 sourcing of vegetable oils, followed by carbohydrates, acids and follows the principles of the WRI/WBCSD Greenhouse other chemicals. The results are illustrated in the figure below. Gas (GHG) Protocol and has been independently reviewed by Deloitte. The modeling of scope 3 impacts is based on The upstream Scope 3 activities constitute 63% of the total a combination of supplier specific data, generic data from carbon footprint from cradle-to-customer. In comparison, the Ecoinvent database (v2.2), as well as data from scientific the emissions from our production facilities contribute 27% publications. In addition to the carbon footprint, the study (Scope 1 and 2), while Scope 3 emissions from outbound includes 16 additional impact categories. Visit www.danisco. logistics represent the remaining 10%. com/sustainability for our methodology. On a product basis the product footprint corresponds roughly The results clearly show that our corporate-wide carbon 4 kg CO2e per kilogram of product from cradle-to-gate. footprint is dominated by upstream impacts related to our material inputs. The most important contribution is from the 1. 57 0.41 0.25 0.25 6.50 Mt CO2e Mt CO2e Mt CO2e Mt CO2e Mt CO2e avoided
CO2 CH4 N2O HFCs PFCs SF6
SCOPE 3 (Indirect) SCOPE 2 SCOPE 1 SCOPE 3 (Indirect) (Indirect) (Direct)
Raw materials & associated Transport to process materials customer
Packaging, water & energy Usee ini food & feed industry Retail
Upstream transport Use in energy sector Consumer transport
Business traveling Company facilities Use in textile industry Use by consumer
Waste & wastewater treatment Purchased energy Company vehicles Applications in biochemicals Waste & wastewater treatment
Upstream activities (Scope 3) Danisco Downstream activities (Scope 3) Mt-Megatonnes = 1,000,000 tonnes
Operational Efficiency SUstainability report 2010/11 39 Operational efficiency
Environmental benefits in application and beyond Strategic decisions Based on 2009/10 sales data, we have estimated that our This corporate carbon footprint study is a milestone in customers and consumers save more than 6.5 million the continuous improvement of our climate strategy. Over tonnes of CO2e per year by using our products. The the past 10 years, we have been successful in quantifying significant estimated reductions are due to our products and reducing our GHG emissions at our manufacturing effect on improvements in yield and efficiency of our sites, thereby focusing on areas that we directly manage customers’ processes, raw material choices in consumer and control. We will use this study to support further and food products, and reduction of food waste and reductions of indirect emissions in our upstream and energy use in retail and households. Examples include: the downstream value chain. Most importantly, we will use use of enzymes and emulsifiers in bread to extend shelf life; this study to inspire innovation in collaboration with other application of enzymes to increase the efficiency of animal value chain players to produce even more sustainable feed; use of protective cultures to prevent food spoilage of solutions. dairy; and the use of enzymes to enable low temperature (short cycle) laundering and automatic dish washing.
Case study
Beyond carbon disclosure The Carbon Disclosure Project (CDP), which represents 534 institutional investors with USD 64 trillion in assets under management, provides an evaluation tool for institutional investors based on responses to CDP’s questionnaire, which focuses on greenhouse gas emissions, emission reduction targets and risks and opportunities associated with climate change. We use the CDP report to benchmark against other companies and as a tool for directing part of our sustainability strategy and developing energy and emission targets. It also sharpens our focus on providing innovative solutions to address the climate change impacts of our customers’ products.
A high ranking in the index indicates good internal data management and understanding of climate change-related issues affecting the company. In 2010, Danisco has been ranked second in Denmark and seventh in the Nordic region in the Carbon Disclosure Leadership Index (CDLI) . Danisco was also featured as one of six Nordic companies in the new Carbon Performance Leadership Index (CPLI), which compliments the disclosure score and recognizes companies that are taking positive measures on climate change mitigation.
40 SUstainability report 2010/11 Operational Efficiency gy W er ate en r
p s f l r i a o n i
i
d
r
s
h
u
e
t
e c
a
t d s E nergy M e a m ir te The use of fossil fuels for electricity, steam, and heat results in CO2 emissions believed iss as ions W to contribute to global climate change, along with other heat-trapping greenhouse gases (GHGs) such as methane and refrigerants. Reducing energy use – and associated GHG emissions – from our operations and contributing to climate change solutions are critical business priorities. eople P r r Meeting our energy reduction goals requires continued Generally, electricity and heat/steam suppliers have improved creativity, commitment, investment, and behavioural their information regarding their sources of energy. Also Ou change. Through previous energy reduction efforts, we a growing part of their indirect energy is sourced from
have addressed most of the readily implemented changes, renewable sources, increasing our ability to source renewable efficiency operational so further improvements present greater challenges. In energy. For example, our enzyme production site in Brugge, addition to engaging employees in efforts to conserve Belgium has certifications for all sourced indirect energy as and to generate new energy-saving ideas, we continue to renewable. In some regions, energy consumption has reduced invest in state-of the-art, energy-efficient equipment and to slightly due to a milder winter in the northern hemisphere. promote enhanced maintenance activities. Several examples of energy reduction efforts come from Energy reduction status our key plants. In Smirice, Czech Republic, the plant’s new Danisco’s total energy consumption decreased by 0.4% centralized control system, installed in 2010, reduced standby during 2010/11, thanks to continued efforts by our employees, periods and associated losses. The change lowered energy improved employee behaviours and the installation of consumption by 11.8% per kg product over the past year. new equipment. The reduction of energy is small but is an important step toward our 2020 target. During the year, we Thanks to boiler, steam, and condensate system upgrades in invested over DKK 20 million in more than 60 energy-related Sassenage, France, it now takes 13.9% less energy than it did projects, and anticipate continued investments for the next a year ago to produce the same amount of product. Likewise, year. improvements to the steam/condensate system in Kansas, USA, decreased energy consumption by 4.7% per kg product. This year we have included additional R&D and administration sites in our energy data as estimates due to the lack of actual A 4.4% reduction was achieved in Tecoman, Mexico, by addressing data. The inclusion of these sites based on a worst-case the energy efficiency of motors and drives, and focusing on their estimate adds 7% to our total direct energy performance, and local energy management approach. Likewise, our Kotka, Finland roughly 3% to our total indirect energy performance. plant reduced their energy use by 10% as a result of improving A large part of the indirect energy is renewable, adding 10% equipment utilization and reducing downtime. to our total renewable energy sourcing.
TARGET To reduce energy consumption by 10% before 2020
Operational Efficiency SUstainability report 2010/11 41 Operational efficiency
Energy reduction outlook enabling target setting in context of our sites’ production levels, Achieving our corporate energy targets will require investment plans and ambient temperatures. This increased level greater focus on sites where the most dramatic reductions of sophistication in managing our energy consumption at the are needed, as well as incremental improvements in facilities organizational level, coupled with continued investment, will be already operating at more efficient levels. Our employee invaluable in our efforts to meet or exceed our 2020 targets. “energy champions,” located throughout the organization, help by evaluating site performance and discovering The tool has helped us focus on several key projects including opportunities for improvement. a 50/50 joint venture to form Gas Natural Caxitlán with the purpose of constructing, owning, and operating a natural gas As of 2010/11, we can track the precise energy usage at every transportation system to supply natural gas for two Mexican manufacturing site, set individualized targets and rapidly pinpoint production sites owned by the partners respectively. The problem areas. We developed a powerful tool for achieving project will eliminate the need for the use of heavy fuel oil at our our corporate targets, allowing data-driven decision-making by Tecoman plant, resulting in a projected CO2 reduction of 30%.
ENERGY CONSUMPTION
Direct energy consumption 1) Unit 2 0 10 /11 2009/10 2008 Non-renewable GWh 1,075 900 1,186 Renewable GWh 7 8 47 Total GWh 1, 0 8 2 908 1,233 Renewable proportion of direct energy % 0.7 0.8 3.8
Indirect energy consumption 2) Unit 2 0 10 /11 2009/10 2008 Non-renewable GWh 1,068 1,084 1, 273 Renewable GWh 377 252 186 Total GWh 1, 4 4 5 1, 336 1,459 Renewable proportion of indirect energy % 26.1 18.9 12.8
Direct and indirect energy consumption Unit 2 0 10 /11 2009/10 2008 Total GWh 2,527 2,244 2,692 Renewable proportion % 15.2 11.6 8.7 Total energy consumption / revenue MWh / DKKm 163.0 163.7 -
1) Internal combustion of fuels for energy production. 2) Purchased electricity, steam and heat.
Energy consumption (GWh) 163.7 3000 163.0
2500 233 2000 384 2,459 260 1500 1000 1,984 2,143 500
0 2008 2009/10 2010/11 2020 Total renewable energy Total fossil energy Total energy consumption per revenue (MWh / DKKm)
42 SUstainability report 2010/11 Operational Efficiency gy W er ate en r
p s f l r i a o n i
i
d
r
s
h
u
e
t
e c
a
t d s Greenhouse gases M e a m ir te The potential effects of global climate change – rising sea levels, changing temperature iss as ions W and precipitation patterns and an increase in extreme weather events – could harm the ecosystems on which our plant-based raw materials depend. As an ingredients supplier and biotechnology innovator, Danisco can contribute to climate change solutions by helping to reduce greenhouse gas eople
(GHG) emissions both within and beyond our own operations in the value chain. Life cycle considerations guide us P in optimizing our operations, which includes reducing transport distances through our efficient global supply chain r organization for Logistics Food Ingredients (LOGFI), as described later in this section. Ou operational efficiency operational
Emissions reduction status We have tracked our GHG emissions since 2001 using the the This year we have separated our CO2 emissions related to Greenhouse Gas Protocol established by the World Resources renewable energy sources (CO2 from biomass) and biogenic Institute and the World Business Council for Sustainable emissions (CO2 from fermentation) from our total Scope 1 Development. In the context of our manufacturing sites, we and 2 emissions. They are now reported separately as total track Scope 1 – direct emissions from company-controlled CO2 from biogenic and renewable sources in this report. buildings and vehicles, and Scope 2 – emissions from purchased electricity on a continual basis. Our total greenhouse gas Our significant CO2 emission reductions in 2010/11 are caused emissions in 2010/11 declined 12% on a revenue basis. by the combination of increased sourcing of renewable energy and increases in production and revenue.
Air emissions (tonnes)
100,000 47.6 42.0 800,000 TARGET 600,000 To reduce 343,354 244,873 259,910 CO2 emissions 400,000 by 20% before 200,000 481,037 407,609 391,580 2020
0 2008 2009/10 2010/11 2020
Direct greenhouse gas emissions (scope 1) Indirect greenhouse gas emissions (scope 2) Total greenhouse gas emissions per revenue (tonnes / DKKm) Scope 1: Direct emissions from company-controlled buildings and vehicles. Scope 2: Indirect emissions from electricity, steam, or heat produced by another organisation.
In October 2010, the Carbon Disclosure Project commended Danisco for our strong climate disclosure practices and included the company in its prestigious Carbon NOTABLE Disclosure Leadership Index for the third year in a row.
Operational Efficiency SUstainability report 2010/11 43 Operational efficiency
Emissions reduction outlook Danisco’s many efforts to reduce GHG emissions are ongoing Hanko, Finland at all sites. Here are a few examples. Our employees in Hanko take pride in their plant’s use of renewable energy. In December 2009, the plant switched Epernon, France from heavy fuel to a combination of wood chips, tree stump Our new ultra-cold storage facility, which opened in November waste, and recycled wood chips. This 18-megawatt (MW) 2010, allows the consolidation of frozen shipments of cultures plant also provides heating for the town. The change has and cuts CO2 emissions by reducing the amount of dry ice reduced CO2 emissions by about 90% from combustion (solid carbon dioxide) and transport used. alone. The emission of CO2 from non-renewables related to their energy supply has decreased by 9,000 tonnes, which results in a reduction of 36.7% Landerneau, France Efforts to refine the seaweed treatment process used at our Melle, France Landerneau site have reduced the amount of raw material A change to natural gas and a more efficient steam system have needed per amount of product. By decreasing the amount of reduced CO2 emissions by 38%. seaweed harvested and improving heat recovery in processing, the plant decreased emissions by 15.2% compared to 2009/10.
GREENHOUSE GAS EMISSIONS
Category Unit 2010/11 2009/10 2008
Direct CO2e - Scope 1 1) tonnes 259,910 244,873 343,354
Indirect CO2e - Scope 2 2) tonnes 391,580 407,609 481,037
Total CO2e - Scope 1 & 2 tonnes 651.489 652,482 824,390
Total CO2e / revenue - Scope 1 & 2 tonnes / DKKm 42.0 47.6 -
Direct CO2e - Biogenic and renewable sources 3) tonnes 62,449 65,278 53,400
Indirect CO2e - Biogenic and renewable sources 4) tonnes 80,499 62,296 0
Total CO2e - Biogenic and renewable sources tonnes 142,948 127,574 53,400
CO2e - Non-Kyoto refrigerants tonnes 13,936 7,895 2,329
Emissions of ozone-depleting substances (CFC-11 eqv.) kg 1,679 668 103
1) Scope 1: Direct CO2 equivalent emissions from company-controlled buildings and vehicles 2) Scope 2: Indirect CO2 equivalent emissions from electricity, steam, or heat produced by another organization 3) Includes biogenic CO2 from production and dry ice 4) Includes CO2 from energy produced by biomass 4) CO2e - Carbon Dioxide Equivalents
Refrigerants Because equipment malfunctions or leaks can lead to At many of our sites, and as a result of our reporting, many emissions from refrigerants, we track ozone-depleting of our sites have developed processes to improve the potential (ODP). In 2010/11, we observed a significant tracking of refrigerant releases. While the absolute impact of increase in refrigerant emissions. refrigerant release is minimal, we recognize that our focus will continue on refrigerant replacement. We have investigated this trend and have attributed the increase to the increased awareness of refrigerant monitoring.
44 SUstainability report 2010/11 Operational Efficiency eople P r r Ou operational efficiency operational
Our main challenge is sourcing raw materials because our suppliers face droughts, storms, earthquakes, and other environmental issues that are pushing some producers out of business. This has driven us to look for improvements in the crops we source and to put operational measures in place to protect our business. Agustin Orozco, Engineering Manager, Tecoman, Mexico
Case study
Danisco Grindsted wins regional environmental award This site achieved a 7,500-tonne CO2 reduction over the previous reporting year, prompting Miljønetværk Syd, a local environmental network,Photo caption to grant goes here,the photofacility caption a 2010 goes here environmental award.
Two-thirds of the improvement was due to investments in technical equipment, while employee conservation efforts accounted for the remaining third. Plant Manager Martin Madsen explains, “The former Minister for Climate and Energy once said that every Dane had to save one tonne of CO2 at home. So we said, why not see if we can save 10 tonnes at work? And we did. In fact, our reduction corresponds to 13.5 tonnes per employee.” The plant’s focus on environmental improvement is long-standing. Over the past 18 years, the energy used to produce 1 tonne of finished product has been cut nearly in half, while water consumption has dropped by 70%.
Operational Efficiency SUstainability report 2010/11 45 Operational efficiency gy W er ate en r
p s f l r i a o n i
i
d
r
s
h
u
e
t
e c
a
t d s Water M e a m ir te iss as The scarcity of fresh water resources is an important issue in the context of our business. ions W Tremendous population growth will decrease the amount of fresh water available per person. As agriculture and industry try to keep pace with our growing population, even greater demands will be placed on global water supplies. Climate change will undoubtedly play a role as well due to more frequent and severe droughts and floods.
Because Danisco’s raw materials come directly from nature, and is discharged from a site to its original source without loss we expect that water scarcity, declining water quality, higher in volume is not included in our water consumption data. costs, and more stringent water regulation will affect our business in the future. An integrated, global strategy is critical to ensuring that we use water wisely and sustainably in the years to come. This year marks a turning point for us as we CDP Water Disclosure begin moving from a focus on maximizing water use efficiency Launched in 2010, CDP Water Disclosure builds on the at the plant level to a more global, longer-term exploration of methodology and process used by the CDP for carbon the locations and timing of potential water resource impacts and climate change since 2003. This year, CDP sent its first due to vulnerabilities in water-scarce regions. annual water questionnaire to 302 of the world’s 500 largest companies in the FTSE Global Equity Index Series, focusing Water reduction status on sectors that are water intensive or particularly exposed Danisco’s overall water consumption declined 2.1% during the to water-related risks. Of the 302 companies targeted, 150 2010/11 reporting year, advancing toward our goal of reducing responded. Although Danisco was not requested to disclose, water consumption by 20% per revenue compared with the we were one of only five companies in the Food, Beverage 2009/10 baseline. Our previous water reduction target – 5% & Tobacco sector (and among 25 companies overall) that from 2007 to 2009/10 – was far exceeded when we achieved proactively responded to the questionnaire, reflecting our a 26% reduction. commitment to transparency and our deep interest in supporting water strategies to meet global needs. CDP Water Water consumption is the volume of all water used in our Disclosure did not rank participants’ performance, but our manufacturing processes, added to a product as an ingredient response can be viewed at www.cdproject.net. or used for cooling. Cooling water that is not contaminated
Water consumption (1,000 m3) 730.5 14,000 715.3 TARGET 12,000 1,458 To reduce 10,000 3,358 1,384 water use by 20% 1,223 before 2020 8,000 3,251 3,743 6,000 4,000 9,012 5,537 5,960 2,000
0 2008 2009/10 2010/11 2020
Surface water and sea water Municipal water Ground water Total water consumption per revenue (m3 / DKKm)
46 SUstainability report 2010/11 Operational Efficiency WATER CONSUMPTION AND USE
Water consumption by source Unit 2010/11 2009/10 2008
Ground 1,000 m3 5,960 5,537 9,012
Municipal 1,000 m3 3,743 3,251 3,358 le p 3 Surface 1,000 m 989 828 1,221 o e P al efficiency al n 3 r u Sea 1,000 m 395 395 237 o O Total water consumption 1,000 m3 11,0 87 10,012 13,828 p o erati Total water consumption / revenue 1,000 m3 / DKKm 715.3 730.5 -
Cooling water use by source 1) Unit 2010/11 2009/10 2008
Ground 1,000 m3 4,418 3,720 7,359
Municipal 1,000 m3 91 69 389
Surface 1,000 m3 8,160 6,728 76
Sea 1,000 m3 21,615 21,045 10,000
1) Cooling water in this category is abstracted but not consumed. This category refers to non-contact cooling water returned to the same source.
C ase study
C ollaboration and teamwork drives water reduction at Smirice
A lthough only 17% of our manufacturing sites are located in projected areas of water scarcity in 2025, many of our sites have active water reduction programmes focusing on water efficiency and re-use. The approach to water reduction is specific to the site’s operations and includes a combination of engineering analysis, project planning and behavioural changes. In 2011, our pectin plant in Smirice, Czech Republic realized a reduction of water consumption per kilogram of product produced by 72%. The site’s performance was led by a team of employees who systematically identified staged projects over a 4-year period. Water balances and harvesting of low-hanging fruit allowed the site to identify and prioritize projects and water reduction activities for capital improvements.
The plan began with projects to optimize filtration performance, resulting in longer filtration cycles and consistently lower water consumption for filter cleaning operations. Other projects like replacement of old filtration equipment, improvement of evaporation losses in cooling towers, and process optimization compounded their water savings and energized water reduction activities at the site.
Operational Efficiency SUstainability report 2010/11 47 Operational efficiency
Potential water scarcity at eight manufacturing sites Our eight sites that operate in water scarce regions vary in processes and utility equipment and production of steam their processes and their total annual water consumption. for sterilization and process temperature control. With In the table below, we have evaluated the index of water potential water scarcity in mind, the four sites have strived scarcity for each site. We have calculated the index based on to reduce water consumption and have begun to develop the number of person equivalents by comparing the volumes plans for reductions over time. Collectively the four sites with the projection of regional water availability in 2025. have reduced over 2.5 million cubic meters of water in the past three years. Of the eight sites identified by the WBCSD Global Water Tool, four have been prioritized based on water consumption The four remaining sites identified in water scarce regions volumes, scarcity index and the nature of processes requiring are minor sites with limited need for fresh water in their significant sources of fresh water to operate. The water processes. These four sites represent cultures production, scarcity index for the top four water consuming sites in blending of systems, and guar gum manufacture. While the water scarce regions range from 889 person equivalents water scarcity indices for these four minor sites are relatively in our enzyme plant in Arroyito, Argentina, to 56 person low – ranging from 11 person equivalents in Sonha, India, to equivalents at our cultures site in Epernon, France. The 2 person equivalents in Daxing, China – we will continue to four sites identified consume water key processes including evaluate water reduction projects that make business sense. cleaning of vessels and process equipment, cooling of
DANISCO SITES IN POTENTIAL WATER SCARCE REGIONS IN 2025 Total water Annual renewable water Site name 3 supply per person Person equivalents Actions in taken in 2010/11 consumption (m ) 2025 (m3/person/year) Optimization of Clean in Place (CIP) Brugge, 466,350 500-1,000 466 system to reuse water in the process - Belgium Total water reduction/year = 6,400m³ Optmization of Clean in Place (CIP) system to reuse water in the process - Arroyito, Total water reduction/year = 36,700 m³ 444,413 <500 889 Argentina Conducted a thorough water audit which defined reduction areas - Total water reduction /year = 100,000 m³ High water consuming process unit Anyang, 368,352 <500 737 was suspended in 2008 - Total water China reduction/year = 2 million m³
Reduction of the number and the duration of CIP operations, reduction Epernon, of the time and flow for equipment 56,343 500-1,000 56 France sterilization, improvement of the water quality used for the boiler in order to re-use a higher percentage.
Sohna, 5,688 <500 11 India As these sites are low water consumers, Zaandam, 4,557 <500 9 we expect a very low risk of impacting The Netherlands the local water source. Further water Botany, reduction measures will be discussed in 1,546 <500 3 Australia 2012 and beyond. Daxing, China 1,065 <500 2
48 SUstainability report 2010/11 Operational Efficiency 2025 Potential Water Scarcity – Danisco Locations eople P r r Ou operational efficiency operational
Total water consumption by site location Projected water scarcity in 2025
> 500,000 50,000-200,000 Extreme scarcity Sufficient 300,000-500,000 <50,000 Scarcity Abundant 200,000-300,000 Stress Expanding water scarcity analysis to our top raw materials Our top 6 agricultural raw materials are derived from raw material including an evaluation of water scarcity for the corn, palm oil, seaweed, soy, rapeseed, and citrus. While major regions where these materials are sourced. We plan to several of these raw materials are sourced in relatively few provide additional strategies to address water scarcity related regions, others represent commodities and are sourced to these six important raw materials in our future business from many regions globally. While it is difficult to pinpoint plans. Our strategy will also support our active participation the exact source of each kilogram of sourced commodity in multistakeholder initiatives like the Round Table on material - like corn, soy and rapeseed - we will focus on Responsible Soy Association (RTRS) and the Roundtable on further evaluating the sustainability profiles of each major Sustainable Palm Oil (RSPO).
We are proud of our team’s accomplishments to increase water efficiency at the Smirice plant. Our past efforts inspired a new project in 2011 to reuse wash water in our ion exchange process which will result in an even greater reduction in water consumption in 2012.” Blanka Valusova, Plant Manager Pectin - Czech Republic
Operational Efficiency SUstainability report 2010/11 49 Operational efficiency
Wastewater management
Essential to our water management efforts is our responsibility Wastewater quality for ensuring the quantity and quality of wastewater discharged The main focus areas for our wastewater composition include by our facilities do not negatively affect the environment. Biological Oxygen Demand (BOD, 5-day), Chemical Oxygen Because our operations are wastewater-intensive, we have Demand (COD), Nitrogen (N), Phosphorus (P) and Total enhanced our ability to monitor wastewater discharges and Suspended Solids (TSS). correct problems promptly.
In 2010/11 the normalized BOD5, COD and N values Approximately 25% of Danisco’s sites have their own have decreased by more than 10%. The absolute values wastewater treatment plants, and 75% pre-treat or direct have slightly decreased indicating that the increase in global discharge to a municipal or community wastewater production has caused the improved performance. treatment plant. Wastewater treatment conducted on-site is accomplished through conventional physical and biological Total P emissions have increased by 14 tonnes or 10%. When treatment. normalized against production the performance remains flat.
Wastewater volume Total TSS emissions have been in focus in several plants with The total volume of wastewater treated in Danisco’s a total increase of 35%. In Tecoman, a TSS reduction project wastewater treatment plants and in external plants decreased resulted in more than 40% decrease allowing improved by roughly 2% in 2010/11. The reductions are directly related wastewater treatment efficiency.. to the increase of water re-use over the reporting period.
This year we have included data on the release of untreated cooling water. While the water is not consumed it is used to cool our processes and equipment. The cooling water discharged is not affected by contaminants and is normally returned to the environment with an increased temperature.
WASTEWATER
Wastewater volume Unit 2010/11 2009/10 2008 Danisco WWTP 1) 1,000 m3 3,753 4,120 6,133 External WWTP 1,000 m3 4,657 4,484 4,206 Non-contact cooling water 2) 1,000 m3 5 ,18 8 4,464 13,709 Total volume (Danisco and External WWTPs) 1,000 m3 8,410 8,604 10,339
Wastewater quality Unit 2010/11 2009/10 2008
Biological Oxygen Demand (BOD5) tonnes 8,685 9,071 9,545 Chemical Oxygen Demand (COD) tonnes 18,643 18,875 18,675 Nitrogen tonnes 1,923 1,945 2,315 Phosphorous tonnes 156 108 199 Total suspended solids (TSS) tonnes 1,842 2,854 2,471
1) WWTP - Waste Water Treatment Plant 2) Cooling water is not consumed, it is used as it is released back to the environment uncontaminated
50 SUstainability report 2010/11 Operational Efficiency gy W er ate en r
p s f l r i a o n i
i
d
r
s
h
u
e
t
e c
a
t d
s M
e a m ir te iss as Materials and ion W s packaging eople P
Danisco’s value chain begins with sourcing many natural materials used in creating our diverse products. We search r locally and across the globe for the most renewable and sustainable sources, and our product designers strive to Ou minimize the amount of material needed and maximize its efficient use. We also contribute to resource conservation by increasing the proportion of recycled materials in our products. In 2010/11, our use of recycled materials increased efficiency operational by 5.2% due to significant increase in the use of renewable materials for the production of xylose (waste black liquor) and pectin (waste citrus peels).
MATERIAL INPUT
Material input by source Unit 2 010 /11 2009/10 2008
Direct material 1) 1,000 tonnes 639 581 609
Recycled materials 2) 1,000 tonnes 493 353 542
Associated process materials 3) 1,000 tonnes 95 74 111
Total material input 1,000 tonnes 1, 2 27 1,0 0 8 1, 262
Recycled materials % 40.2 35.0 42.9
1) Direct materials - Materials present in the final product 2) Recycled materials - Materials replacing virgin materials for example, citrus peels for pectin production and wood pulp for xylitol production 3) Associated process materials - Materials used for the manufacturing process but not part of the final product
Operational Efficiency SUstainability report 2010/11 51 Operational efficiency
P ackaging Our commitment to resource preservation includes the packaging quantity more than 90%. responsible selection, use and disposition of packaging materials. We seek to minimize the environmental burden on customers Although packaging volume has decreased by 4.3% when and society by increasing the use of reusable materials in our normalized by production volume in 2010/11, we have room product packaging and have been reviewing our packaging for further improvement. For example, we recently discovered practices, consolidating suppliers and standardizing specifications. that, due to legacy industry practices, some of our products are Generally the amount of packaging per tonne of product still over-packaged, such as non-hazardous items that are being is decreasing. As an example, our site in Wuxi, in China has shipped in sturdier, UN-rated packaging designed for hazardous replaced totes with flexi-bags, which means a decrease in materials.
PACKAGING
Packaging type Unit 2 010 /11 2009/2010 2008
Reusable 1,000 tonnes 4,398 5,246 3,991
Non-reusable 1,000 tonnes 20,366 18,157 23,075
Total packaging 1,000 tonnes 24,765 23,403 27,066
Proportion of reusable packaging % 17.8 22.4 14.7
Total / kilogram of product kg / kg 0.044 0.046 0.050
Working with vendors We urge our suppliers to minimize the amount of material in also reduce paper content by 30% while providing a stronger their packaging. Previously, shipments of various plastics such as bag for our products. However, because the polyethylene liner stretch films arrived packed in shrink-wrapped boxes on pallets. prevents these bags from being easily recycled, we are assessing the life cycle greenhouse gas impact of other options such as Those boxes have been replaced by recyclable cradle packs fully recyclable plastic bags. at all of our North American sites, reducing the fibre content significantly. When necessary, we also identify new suppliers Plastic containers to help us reduce packaging. Danisco is pursuing a number of The 19-litre plastic pails used by Danisco’s North American sites initiatives, from pallet pooling to down-sizing the coolers for – about 35,000 pails annually – were previously recyclable only our cultures, to evaluating the biodegradable “green coolers” if the polypropylene gaskets were manually removed. A new used in the meat industry. Already, we have made significant supplier now provides us with 100% high-density polyethylene improvements in two key areas: bags and plastic containers. (HDPE), fully recyclable pails. Similarly, we are now working with a supplier of 1,000-litre plastic intermediate bulk container totes Brown bags In 2009, we switched from white bags to brown bags at 11 that offers a collection and recycling or reuse programme for locations, with 400,000 bags converted to date. The new bags these large plastic items. not only avoid the need for harmful bleaching chemicals, but
Danisco’s policy is to minimize environmental impact by reducing, reusing and recycling packaging materials. I’m passionate about making this happen because we have a tremendous opportunity to move to more sustainable options” Darren Weaver, Global Category Manager for Packaging
52 SUstainability report 2010/11 Operational Efficiency Waste A focus on the entire life cycle of our products drives our efforts to improve waste management systems and practices. Because the most effective approach is to avoid creating waste in the first place, a commitment to waste prevention and cleaner technology guides our product design and material selection processes. We also emphasize material reuse and recycling, energy recovery options, and when no other alternative exists, landfilling. Improvements eople
and reductions in packaging are central to our waste management strategy, as discussed in the previous section. P r r
WASTE GENERATION Ou
Disposal methodology Unit 2 010 /11 2009/10 2008 efficiency operational
Non-hazardous waste L andfill tonnes 12 , 811 15,464 ---- I ncineration tonnes 493 1,097 ---- O n-site storage tonnes 517 212 ---- O ther disposal tonnes 678 10,736 102 ,171
on-recovered waste Hazardous waste tonnes 2,183 3,556 4,005 N Total non-recovered waste tonnes 16,668 30,122 105,727
Unit 2 010 /11 2009/10 2008 Recycling tonnes 10,908 20,056 ----
1 Energy recovery tonnes 29,444 2,417 ---- Composting tonnes 13,213 10,521 ---- Land application tonnes 20,926 16,101 ---- Recovery tonnes 235 197 ----
R ecovered waste Reuse tonnes 1,154 223 ---- Total recovered waste tonnes 75,880 49,515 ----
Total waste generation tonnes 92,563 79,646 105,727 Total waste generation per tonne product tonne/tonne 0.16 0.16 0.20
1) OECD-Eurostat definition for waste recovery: Recovery is defined as any waste management operation that diverts a waste material from the waste stream and which results in a certain product with a potential economic or ecological benefit. Recovery mainly refers to the following operations: • Material recovery, i.e. recycling (see below); • Energy recovery, i.e. re-use a fuel; • Biological recovery, e.g. composting; • Re-use. Direct recycling or reuse within industrial plants at the place of generation is excluded.
Over the past few years there is an increasing focus on waste Danisco’s total waste has increased by 6% normalized on as a topic of concern. Manufacturers, like ourselves, see large production volume; however we are recovering a higher economic opportunities for internal reuse and recycling options proportion. We are moving significant volumes from landfill to to avoid external disposal. For this reason, the figures have been incineration and recover value by utilizing the energy content for regrouped showing quantities separated by final disposal and energy production. We are also increasing the amount of waste recovered waste. used for land application and composting, creating high quality nutrients for soil.
Operational Efficiency SUstainability report 2010/11 53 Operational efficiency L ogistics The 2010/2011 period was a challenging time for product transportation. The volcanic eruption in Iceland disrupted air transport of our cultures and floods inA ustralia and Pakistan and continuing unrest in northern Africa and the Middle East complicated transportation in those areas. Damage to our products and concern about radioactivity after the Japanese earthquakes led us to consider relocating our finished products, even though our warehouse locations are more than 200 kilometres away from the Fukushima plant.
In May 2010, Danisco established a new supply chain In the past, our logistics network was fragmented, with each structure to simplify and enhance the way we manage our sector transporting primarily its own products and sharing global supply chain. The Logistics Food Ingredients (LOGFI) warehouse facilities on a limited basis. The greater transparency organization covers supply chain planning, customer service, and coordination LOGFI brings allows co-transport in full transportation and warehousing, as well as logistics sourcing truckloads, as well as additional opportunities for creative and supply chain development. This new structure has solutions. With 500 employees from the divisions and our Sales improved alignment across the business and enabled us to and Application Food Ingredients business having transferred provide better service to our customers. to LOGFI, the new network has already begun sharing and adapting best practices.
Disruptions that make transportation difficult are here to stay. Our new structure will improve our ability to find rapid, flexible and creative solutions to challenges that confront us in the future” Karen-Marie Katholm, VP for LOGFI
We are also achieving greater collaboration between the LOGFI and have dramatically reduced our reliance on external organization and our industrial biotechnology division, trucking contractors in Europe. By consolidating our business Genencor. Joint supply chain initiatives include: with a smaller number of service providers, we are able to negotiate more favourable contracts, better focus on achieving Optimization of regional distribution centeres environmental goals, reap the benefits of electronic data This strategy offers tremendous opportunities to reduce our interchange and build stronger relationships. environmental footprint in product transport by using full truckloads where possible. By maximizing the use of our own Prioritization of energy-efficient modes of transport facilities, we have already closed some external warehouses. In While our cultures require temperature-controlled transport by addition, common warehouse standards for energy emissions, air freight, we opt for the lower cost and lower carbon footprint noise, food safety and health and safety are being established. of rail for other products where feasible. In determining the optimal mode of transport, we consider the location of the Consolidation of carriers for all modes of transport customer, our warehouses and our manufacturing facilities to We have reduced the number of freight forwarders (the minimize transport distance and reduce customer delivery times. middlemen of oceanic shipping) we use by more than half,
54 SUstainability report 2010/11 Operational Efficiency C ompliance E nvironmental violations and spills Our use of environmental management systems and risk-based fermentation processes, while noise complaints are most often analyses facilitate early identification and resolution of potential related to vehicles transporting goods to and from our sites. eople
impacts at our manufacturing sites. We track areas where we In response to complaints, plant personnel evaluate potential P are not meeting our own or local regulatory standards and focus remedies, frequently involving community members in the effort. r on improvements in those areas. Many of our sites use wastewater- We registered 23 complaints in 2010/11. Ou intensive processes and depend on high-pH detergents for cleaning,
which must be neutralized before discharge. When violations do Community members with concerns regarding our operations efficiency operational occur, they most often involve wastewater permit exceedances are encouraged to contact our sites directly or write to us at – primarily pH, nutrients or chemical oxygen demand – and are [email protected] almost always related to process control variances, which are addressed in maintenance and operational control programmes. In Other fines and sanctions 2010/11, we experienced seven violations, one of which resulted in There have been no other significant fines or non-monetary a fine of around USD 4,700. sanctions levied against Danisco for non-compliance with laws and regulations during the 2010/11 reporting period. We also monitor odour and noise concerns filed with Danisco facilities. An odour of bread and grain can result from
ENVIRONMENTAL INCIDENTS
Violations and spills 2 010 /11 2009/10 2008 Wastewater 3 13 13 Other violations (spills, etc.) 4 6 2
Complaints 2 010 /11 2009/10 2008 Noise 12 15 10 Odour and dust 11 22 9 Product responsibility To ensure that our products are safe for human health and access to the appropriate information to handle our products the environment, we assess our raw materials and finished safely. While safety data sheets are only required for hazardous goods against a variety of health and safety standards. As a global substances, Danisco provides these for all products. The sheets company, a number of different regulations govern the way we detail first aid measures and handling and storage requirements. analyse our ingredients’ physical and chemical properties and We are currently upgrading our global safety data sheet conduct environmental and human health hazard assessments. system to comply with different national laws and to facilitate The European Union’s Registration, Evaluation, Authorisation and knowledge sharing within our organization. Restriction of Chemicals (REACH) program required us to provide risk data in 2010 on six substances that we produce in volumes Danisco also meets the assessment and communication greater than 1,000 tonnes per year. By 2013, this requirement requirements of the 2007 United Nations Globally Harmonised will extend to the approximately 30 substances we produce in System of Classification and Labelling of Chemicals, which went quantities between 100 and 1,000 tonnes per year. We follow into effect in Europe for pure substances in 2010 and will cover applicable regulations where our products are made and sold. mixtures beginning in 2015.
Product safety communication We provide accurate, clear information regarding content, safe use, storage and disposal of our ingredients to ensure that employees, transporters, customers and end users have
Operational Efficiency SUstainability report 2010/11 55 Sustainable solutions Sustainable solutions
We provide solutions to global challenges As a world leader in food ingredients, enzymes and bio-based solutions, we use nature’s own materials to design products that meet market demand for healthier and safer products. Contributing to solutions for a sustainable future is a natural fit for us in the areas of food, health, chemicals and energy.
Population 2010: 7 billion 2050: 9 billion 5FOOD HEALTH ENERGY CHEMICALS
• Ingredients enhancing • Dietary supplements • Enzymes for reduction • BioIsoprene™ taste, texture, safety supporting physiological of water and energy collaboration and nutrition benefits and nutrition • Products for 1G and with Goodyear • Extend shelf life and claims 2G biofuels • GRINDSTED® preserve freshness • Ingredients contributing • DDCE: cellulosic SOFT-N-SAFE • Cost reduction to digestive, immune, ethanol technology and value-improving bone, cardiovascular solutions and oral health and weight management
56 S usSUtainabilitystainability report report 2010/11 2010/11 S us Stainableustainability Solu Soltionustions s tion u eople P r r Ou tainable Sol tainable
6.5 us million tonnes S
of CO2e avoided
Global challenges require holistic approaches
As consumers, we are increasingly confronted with the future global challenges related to the products that we consume. As an ingredients supplier, we also face the challenge of our customers growing demand to deliver more sustainable products and to communicate their sustainability benefits clearly to retailers and consumers. We recognize our role and responsibility to promote ingredients as value chain solutions, quantify the benefits and impacts, and to help communicate the message. Focusing on the right things The global challenges are the catalyst that has brought us Through these products and many others, we demonstrate to where we are today. The culmination of our sustainable our lasting commitment to addressing future challenges innovation efforts are revealed in our products – products through innovative, sustainable solutions. that reduce refrigeration needs to save energy, concentrated cultures that reduce transport impacts, proprietary ingredients We have faced the challenge of quantifying the impacts from to support improved health and unique enzymes that our products in a life cycle perspective, focusing on our most revolutionize industrial cleaning and reduce water use or that important products. We have engaged in a dialogue with our pioneer a new generation of biofuels. stakeholders to understand their challenges and needs. And, we have developed a means to communicate the benefits and impact reductions of our products in a clear, concise, and personalized approach.
SustainabilitySustainable Sol Solutionutions s SU Susstainabilitytainability report report 2010/11 2010/11 57 Sustainable solutions Solutions to meet global challenges We bring sustainable solutions to market by using nature’s own materials to design products that meet the demand for healthier and safer products, investing in game-changing innovation, and using life cycle assessment (LCA) tools in product development. Contributing to a sustainable future is an innate fit for us in the areas of food, health, chemicals and energy. And, although Danisco is engaged in solutions on many levels, it is through our sustainable offerings that we contribute most significantly to mitigating these challenges.
Food – preventing waste, making food affordable A rapidly growing population, higher – and more consumptive and wasteful – standards of living in the emerging economies, conflicts over scarce land, water and oil and extreme weather events all contribute to the difficulties we will face in feeding 9 billion people.
CONCERN SOLUTION
30% of all food goes to waste Extend shelf life & preserve freshness
Reducing food waste We collaborate with our customers to make affordable As much as 30% of the food grown for human consumption foods available where they are most needed, such as by – food that required resources to grow, process and devising affordable solutions to compensate for poor quality transport – is discarded as waste. The British Waste and raw materials. For example, bakers may need to use second Resources Action Programme estimates that each tonne of quality grain to make bread. Working at the molecular level, food wasted is responsible for more than 4 tonnes of CO2 Danisco’s emulsifiers can counteract the poor baking quality emissions. Our long-standing expertise in food protection of marginal grain. technology prevents waste through products such as Danisco’s POWERFresh® and G+ technology, which provide anti-staling enzymes to keep bread fresh longer, as well as products that prevent spoilage in meat, seafood, and dairy.
Making good bread from low-quality flour While the recent economic downturn and rise in food prices have sparked customer interest in lowering their production costs, food affordability is an even broader issue. Already, many people cannot afford to feed themselves adequately, a situation that will be exacerbated in a resource-constrained future.
Facing food shortages and climate change
58 Sustainability report 2010/11 Sustainable Solutions GRINDSTED® Fiberline won the Health Ingredients Excellence Award in 2010 for making rye bread more appealing so this healthier option can be innovation the consumer’s first choice.
Feed – increasing efficiency, reducing waste You need to feed an animal around five kilos of grain feed to produce one kilo of meat. That is a problem in a Less world facing food shortages. Grain-based feed for food animals is not just a problem because the grain could pollution have been used as food for humans, the animals are not able to absorb all the nutrients. s tion CONCERN SOLUTION u eople P
Feed efficiency and nutrient waste I mproving animal digestion r Ou tainable Sol tainable us Feed is expensive and arable land is decreasing Getting more with less S Breeding chickens and pigs is a challenge to the environment Our enzymes improve animal digestion by breaking and the food industry. The animals are fed so they can end down the cell walls of the feed so the animal’s intestines up as food on the consumer’s table. But feed is expensive, can better absorb the nutrients. This innovation allows arable land is decreasing, and animals are not able to farmers to reduce feed costs while improving animal absorb all the nutrients of the feed without a little help. growth, with less feed required. Another significant environmental benefit of improved feed efficiency is less animal manure. Less manure results in less nutrient waste, including phosphorus discharge into the environment.
Health — promoting lasting well-being Not only is our population skyrocketing, we are increasingly ageing, overweight and undernourished. Dansico possesses world- class expertise in creating ingredients that allow the formulation of healthier foods without compromising taste or texture. Our products address oral health, weight management, immune system wellness and overall health. Our Litesse sweetener, for instance, provides a low-calorie sugar substitute with soluble fibre to aid in nutrition and weight management www.litesse.com( ).
CONCERN SOLUTION Healthy food for all Convenient and healthy solutions
Promoting oral health with xylitol Improving bone health XIVIA, our sustainable xylitol derived from renewable forestry Some Danisco products assist in building stronger bones and wood pulp, can replace sugar in many products, benefiting oral preventing osteoporosis. Recent studies have shown that health and weight management (www.xylitolinfo.com). vitamin K, especially K2, plays a pivotal role in supporting Danisco also provides a range of probiotics with strain- healthy bone mass, along with calcium and vitamin D. Danisco dependent benefits to the immune system and offers a line of products to support bone health, including protection against pathogens (www.howaru.com). natural vitamin K2 (MK-7). Known as ActivK™MK-7, it is a pure extract of natto, traditional Japanese fermented soya beans, the richest and most bio-available known sources of the vitamin. Increasing focus on health
Sustainable Solutions Sustainability report 2010/11 59 Sustainable solutions
Energy — creating the biofuels of the future To tackle reliance on fossil fuels, address volatile energy costs and help mitigate the changing climate, we must develop solutions that can transform society. We believe that a world powered by clean, renewable fuel is within reach. Through our Genencor Division’s expertise in biofuel technology, we are working to make commercial-scale ethanol production a reality.
CONCERN SOLUTION Reduction of CO2 emissions Sustainable energy
Breaking down cellulose Accellerase® DUET, for second-generation applications, to make second-generation bioethanol provides more effective biomass hydrolysis while reducing Fuel ethanol can be created from the starch in grains and energy, waste and chemical inputs. It is also feedstock sugar cane, resulting in what is known as first-generation flexible and costs less, removing enzyme cost as a barrier to biofuel, or from the cellulose plant material in agricultural commercial cellulosic ethanol. residue and non-food crops such as switchgrass, referred to as second-generation biofuel. Because second-generation biofuel Collaboration to decrease fossil fuel dependency development is more complex, our expertise in enzymes We seek partnerships that develop our potential for catalyzing and in extracting sugars from complex structures is proving fuel sustainability. In 2010, our joint venture, DuPont Danisco extremely valuable. Enzymes are critical in converting biomass Cellulosic Ethanol LLC, celebrated the opening of its material more effectively into fermentable sugars, a necessary demonstration refinery in Tennessee, USA. The University of step in producing ethanol. We provide a variety of enzymes Tennessee Biofuels Initiative and Genera Energy are also for both the first- and second-generation sectors to improve partnering in this effort to produce ethanol from the cellulose production processes by reducing energy and water use and in corncobs and switchgrass. We have also been cooperating increasing process yields. with farmers on a pilot feedstock project and have begun site selection for the first commercial production plant in the Two of our latest products showcase these solutions: American Midwest (www.ddce.com).
SPEZYME® RSL for first-generation applications, efficiently liquifies dry ground corn and milo, reducing feed costs while increasing yields.
Case study
Genencor wins award for sustainable biofuel technology On 22 March in Rotterdam, Genencor received the Sustainable Biofuels Technology Award at the World Biofuels Markets conference – one of the largest and most well attended conferences on biofuels and biochemicals in Europe. Sponsored by Green Power Conferences, the prestigious award highlighted Genencor’s achievement as “a technology supplier improving the efficiency and sustainability of biofuels production.” Genencor was one of three finalists.
“We are honored to receive this award and accept it as a testament to the hard work and commitment of our Biomass Team in pushing boundaries within the industry,” said Bjarne Adamsen, Genencor’s Vice President of Business Development. “Today, biofuels are the most important alternative fuel to oil. We look forward to continuing to forge new frontiers in both the biofuels and biochemicals markets and answer the market’s call for technologies that are both cost-effective and sustainable.”
60 Sustainability report 2010/11 Sustainable Solutions Genencor recently launched new consumer research that demonstrates the market potential in North America for biobased and “green” household Leadership products with environmental benefits. Visit www.genencor.com/hsi/
Chemicals — creating bio‑based alternatives Our society has come to rely on petroleum-derived materials for ingredients in a variety of products from synthetic rubber to laundry detergent. Our stores of fossil fuels are non-renewable, have a large associated greenhouse gas impact, and require
significant resources to extract. Consistent with our belief that industrial biotechnology can contribute to a flourishing bio-based s economy, we provide bio-based alternatives to a range of substances derived from crude oil. tion u
CONCERN SOLUTION eople P r r
Finding a replacement for oil Bio-based and sustainable products Ou tainable Sol tainable us S Safer plastics Green tires in the future Transferring our expertise in food ingredients to the world of We are collaborating with Goodyear Tire and Rubber polymers is not new for Danisco. We have been developing bio- Company to leverage the expertise of both companies to develop based alternatives that are not only renewable, but also safer than a bio-based molecule with revolutionary applications for the the petroleum-based materials they replace. One of our most rubber industry. Through a significant investment, we are creating exciting products is GRINDSTED® SOFT-N-SAFE, an alternative a renewable alternative to petroleum-based isoprene, a key to the phthalates commonly added to plastics for elasticity. Our component of rubber. This is another application of our expertise product is vegetable-derived with no known health concerns so it in pathway engineering. Our first product delivery to Goodyear is well-suited to applications in food packaging, children’s toys and in 2010 was ahead of schedule and we are on track to meet our medical equipment (www.danisco-softnsafe.com). target to begin commercial sales in 2013.
Based on renewable raw materials
Sustainable Solutions Sustainability report 2010/11 61 Sustainable solutions Meeting customer needs Just a few years ago, our sustainability focus was internal, focused on reducing environmental impacts at our own facilities. Since then, our approach has evolved quickly to encompass an important external focus. Today, we work hard to reduce impacts in our customers’ and their consumers’ use of a product made with our ingredients and to imbue the product with a sustainable purpose as well.
Today, our customers are also our partners and collaborators. As our own sustainability strategies have matured, so have those We work to understand their aspirations so we can create and of many of our larger customers, who increasingly expect us deliver products that not only meet their specific ingredient to provide data demonstrating sustainability improvements for needs, but also address their sustainability commitments. Most multiple environmental parameters. We share their interest customers appreciate the lower costs associated with impact in precision and welcome the opportunity to help them make reductions in energy, water or materials. Those operating in appropriate product claims and to prepare them – and ourselves regions affected by food security concerns seek practical – for a future regulatory environment that may well expect solutions for keeping food fresh longer or improving their ability explicit externalization of environmental costs. We believe all to accommodate the poor quality ingredients available in some our customers appreciate the kind of leadership, innovation, and areas. Both cost and practical solutions are good starting points sophistication we have shown. Together with our customers, we for robust dialogue on sustainability. are creating the sustainable products of the future.
Reducing carbon impacts - Danone Carbon Pact In 2009, we engaged with one of our important dairy Our engagement with Danone resulted in a contractual customers to reduce greenhouse gasses in our facilities and commitment called The Danone Carbon Pact, for which we in the products that we provide. agreed to communicate our CO2e reductions over time and to conduct a series of LCAs on key products over a 3-year period. We conduct annual reviews of our progress and share the results of our LCA activities.
Customers are starting to judge companies by their sustainability platforms and want a better understanding of what we can offer them. We are acquiring sustainable raw materials, reducing energy consumption and working on products that create more sustainable value for our customers. I feel very proud to work at a company at the forefront of sustainability, not only in thought, but also in action” Jan Lenferink, Regional President, Sales & Application Food Ingredients
62 Sustainability report 2010/11 Sustainable Solutions LCA has become a way of business. We have successfully positioned it with our major customers to support their efforts to develop less impactful products and to IMPACT strengthen our customer relationships. P aul Turner, Group Manager Sales, SAFI UK U sing LCA to change the discussion s Focusing our life cycle approach toward our customers and the market is a key foundation of our sustainability e
strategy. In the past year, we have significantly advanced our approach to consider the retail trends toward evaluating P
and quantifying the sustainability performance of food and consumer products. Life Cycle Assessments (LCA) of our u products and their application has allowed us to broaden and change the discussion with our customers, retailers, O r ople t and consumers. It has also inspired our innovation and application groups to meet the challenges of the future. s Su Solution ainable Assessing product impacts and providing leadership Over the past year, we have developed a product By 2013, we will complete studies for all remaining Danisco sustainability strategy to evaluate the environmental impacts food ingredients product categories. Danisco’s significant of our major products using Life Cycle Assessment. The investment in LCA testifies to our commitment to develop purpose of this exercise is to understand how we can make products with the least environmental footprint, and to provide them more sustainable and to deliver and communicate our our product developers with inspiration and tangible tools to contribution to the reduction of impacts in our customers’ make a difference. processes and products. Industry leadership initiatives In prioritizing our efforts, we have concentrated on performing Danisco participates in the Sustainability Consortium, a broad- LCAs for all of our major products from cradle-to-gate. During based initiative to develop scientific methods for assessing and the last year, we have completed 14 LCAs varying from improving the sustainability of products and services. We also screening to detailed ISO 14044 compliant, peer-reviewed promote integration of sustainability and life cycle assessment studies. Examples of these studies are found on the next page. through several industry associations to establish common LCA methodologies and promote life cycle thinking throughout industry. Changing the discussion In discussing the sustainability aspects of our products Sustainable solutions project with our customers, we realized that often the discussion Last year we launched an ambitious project aimed at centers on the impact of our product itself – through either documenting and quantifying the avoided impacts associated our direct emissions or cradle-to-gate life cycle. It was time with the use of our products. The project team has screened to change the discussion. six applications and identified the potential benefits. For example, one of our products which allows the replacement We realize that the greatest potential for impact reductions of animal derived protein with vegetable protein in our is our products’ effect on our customers’ value chain. For customers’ dairy products, significantly reduces greenhouse instance, the use of an enzyme solution in bread could increase gas emissions back through the value chain to the cow. The the freshness and consumer appeal, thus reducing the potential same product allows for higher cooling chain temperatures, that the consumer will throw it out. When the consumer thus reducing energy consumption and CO2 emissions; chooses to waste a partial loaf of bread, the upstream reduced the need for energy consuming hardening tunnels impacts are cascaded to the retail chain, transportation chain, in the dairy, also reducing energy and CO2 emissions; and is processors, flour millers, all the way back to the field where the a healthy replacement for animal proteins. wheat was grown – and this is one of many examples where Danisco products make a difference. The discussion will not change quickly – but it is starting. Our holistic approach to life cycle thinking allows the discussion to progress, building foundations for new areas of collaboration and open innovation.
Sustainable Solutions Sustainability report 2010/11 63 Sustainable solutions
People tell me that seeing LCA results makes sustainability tangible. It is very motivating for product developers and people at the plant level to get LCA findings because they can see how their actions affect the big picture. In this way, a life cycle perspective and quantitative results promote sustainability throughout the whole organization and help decision-makers choose the most sustainable path forward.” Mikkel Thrane, Life Cycle Assessment Manager
Life cycle impacts of Danisco’s products and services
Danisco • Enabling biofuels Customer • Extended shelf life • Less retail & consumer • Less energy input waste = less - Cold water washing transport • Better organoleptic qualities. Fresher food.
Production Transpor t Transpor t Consumer
• Bio-based Tr a n s p o r t Use Production End-of-life materials and (Customer) chemicals
• Energy, water Raw Raw & chemical savings Transpor t materials End-of-life • Less inputs & more materials sustainable raw materials
• Enabling biofuels • More efficient conversion of • Less downstream waste animal feed = Less transport • Use of agricultural waste as feedstock • Less downstream waste = less raw materials Our solutions can significantly affect our customers’ own processes by improving efficiency and enabling increased use of by-products. In addition, they can also influence the customers’ upstream and downstream processes and impacts. Our products provide the opportunity to choose more sustainable raw materials or reduce food waste in retail and households.
64 Sustainability report 2010/11 Sustainable Solutions The raw material for our XIVIA™ sweetener is side stream from paper production derived from renewable forestry. In a recent independent study, Notable XIVIA™ emerged as the most sustainable xylitol with the lowest carbon footprint. s tion u eople P r r Ou tainable Sol tainable us
Product Life Cycle Assessments S Product Product/LCA Description Results
ISO 14044 compliant, comparative LCA of Xivia™, • 86–99% lower impact in all environmental Xivia produced using a side stream from impact categories Danisco’s xylitol pulp and paper mills versus traditional xylitol • 10x lower CO2e emissions from cradle-to-gate than corn sweetener produced from corn cobs – panel reviewed cob feedstocks
ISO 14044 compliant comparative LCA of Danisco’s enzyme-based bleaching solution, Huntsman • Saves 10 trillion litres of freshwater annually characterized by low energy and water use Gentle Power • Saves 10–30 million Mt CO2e annually - if applied and low cotton loss, compared to a standard Bleach™ globally chemical based bleaching solution – panel reviewed
• Use of heat energy at plant is main impact driver ISO 14044 compliant cradle-to-gate LCA to • Switching from heavy fuel oil to gas and pursuing Pectin quantify impacts and identify most relevant energy efficiencies at Mexican plant will reduce areas for improvements – reviewed CO2e impacts 15–20% over two years
• Transport is the main driver of impacts Cradle-to-gate LCA aimed at quantifying Frozen Cultures • Several options were identified for improvements in impact reduction potentials and identifying Freeze-dried transportation depending on location of customer most relevant areas for improvements – Cultures • Danisco’s highly concentrated cultures significantly review expected, fall 2011 reduce impacts from transport and cooling
ISO 14044 compliant, cradle-to-gate LCA • Demonstrates a low carbon footprint from cradle-to-gate, to quantify impact reduction potential of SOFT-N-SAFE partly due to biogenic carbon uptake by castor trees SOFT-N-SAFE which replaces phthalates – • A more sustainable, nontoxic replacement for pthalates reviewed
• Illustrates that raw material choice is critical for Detailed LCA study of the bio-based isoprene sustainability profile of final product BioIsoprene™ replacement from the petrochemically derived • Study will be used to improve sustainability aspects compound – reviewed of the product and is ongoing
Sustainable Solutions Sustainability report 2010/11 65 Sustainable solutions I nventing the future through market-driven innovation Innovation lies at the heart of our bold strategy to invent the future – to discover breakthrough innovations, create the sustainable products of the future and address our world’s greatest challenges. Today, innovation-driven products make up an estimated two-thirds of our sales. Our patents attest to the unmatched talent of our global research & development (R&D) and application teams. With a significant investment in R&D and two new programs that foster cross-cutting ideas from the consumer in all of us, we have committed to innovation and the creation of transformative solutions company-wide.
R eaching unexplored potential To discover and develop the breakthrough innovations that Danisco Innovate program allows us to gather ideas from will fundamentally shape the future of our business and our anyone in the organization and generate perspectives that world, we must leverage our strongest business asset – our might not arise from other innovation approaches. The fun employees. The challenge is finding the best ways to unleash and interactive program allows employees to post ideas their creativity and channel these gifts toward game- for new products that would serve an unmet need and to changing ideas. comment on, and vote for their favourites. More than 20% of our organization participated, generating more than 1,000 Danisco Innovate suggestions. We expect four of these to become innovation As we are all consumers with our own ideas for products projects and eventually marketable solutions. we would like to see on the market, we also encourage innovation among all of our employees, not just those with R&D expertise. As an idea-generating scheme, the
Innovation isn’t limited to people in white lab coats; it can come from anywhere. It is very powerful to see that happen and to participate in this kind of cultural change.” Ariella Gastel, IdeaLab Coordinator
66 Sustainability report 2010/11 Sustainable Solutions During the 2010 China Economy Summit, Danisco China was named one of the top 10 innovation companies in China - the only food ingredient DISTINCTion company to be so honoured.
It has been a privilege to work with more than 1,500 creative and engaged colleagues on filling Danisco’s s innovation pipeline. It is highly motivating to work together to build each other’s ideas into innovation tion
projects and, hopefully, revenue. The vast majority of Danisco Innovate projects are sustainable, aimed u
at meeting the global challenges. The outcome of this project confirms that sustainability is embedded in eople P the way we work and think, and our innovation culture goes way beyond R&D and application.” r Ou Dorthe Malmqvist, Danisco Innovate Coordinator tainable Sol tainable us S
IdeaLab With IdeaLab, we have found an extremely effective process IdeaLab succeeded in embedding innovation more strongly for doing just this. IdeaLab involved a concerted effort in 2010 in our organization, creating visibility for additional ideas, to bring together people from the R&D, science, business inspiring our employees and giving them tools for driving and production functions in several intensive workshops held innovation in the future. Going forward, IdeaLab will establish across the globe from Brabrand, Denmark to São Paolo, Brazil. Danisco as a powerhouse in converting radical ideas into More than 250 direct participants (and another 100 who sustainable solutions that extend well beyond our traditional participated through interviews) explored the innovation offerings. possibilities arising from consumers’ unmet needs, generated 950 ideas. We then compared these insights with our core Knowledge management competencies to create 41 unique innovation platforms. The It can be challenging to share best practices or creative four best ideas were presented to the Executive Committee ideas across a global organization that spans every time for business case development and at least two of these have zone. A way that we are addressing this challenge is by been approved to progress to the next stage. developing experience profiles on our intranet portal. Our intranet’s new competency finder is helping our thousands Sustainability performance is a key criterion for these projects of employees access specialized knowledge and facilitate and Danisco is working to integrate sustainability into all cross-divisional team development. In addition to providing key innovation projects by using LCA screenings as well as greater visibility for individual expertise, our new Knowledge questionnaires and improvement tools integrated into the Management programme is building a culture of collaboration product development process. and creating channels to facilitate exchange of ideas. From Yammer microblogging to establishing online communities, our employees are finding each other and sharing their knowledge – benefiting the participants and our business.
Sustainable Solutions Sustainability report 2010/11 67 People People
Employees by region
North America Europe and Rest of the World*) Asia Pacific 26% 51% 16% 619% Male / 7% Female 31% Male / 20% Female 11% Male / 5% Female
Latin America 7% 5% Male / 2% Female
*As of 2010/11 Western Europe and Rest of the World have been aggregated
68 SUstainability report 2010/11 People eople P
Our people “First you add knowledge …”. Those four words capture the distinctive and powerful advantage Danisco offers its customers. The knowledge that sets us apart from our competitors rests in our employees, the key ingredient in Danisco’s formula for success.
Attracting and retaining dedicated and talented people Talented, motivated employees with world-class expertise across all roles and in all locations is a business imperative. are Danisco’s greatest competitive asset, and by supporting That is why we work and invest to strengthen our their continued development we can attract and retain the human resource capabilities and employee development best people. Our human resources team has implemented programmes. The experience, expertise, and creativity our consistent, forward-thinking policies and processes across customers value, is alive and well in the 6,890 people we the globe, supporting employee performance, encouraging employ in 40 countries worldwide. engagement, building potential, and providing equitable rewards.
Countries Sites Employees
40 112 6,890
People SUstainability report 2010/11 69 People
A powerful global workforce Danisco is stronger for the diverse backgrounds, experiences, and perspectives of the people who make up our multicultural workforce. We foster a company culture in which all employees are treated as individuals and valued for their contributions to the team, regardless of gender, race, age, religion, political opinion, social or ethnic origin, sexual orientation, disability or other status unrelated to job performance.
Despite the widespread diversity of Danisco employees, committed to addressing this issue. While gender-based we recognise that the representation of women at the senior quotas are being explored in many companies, Danisco’s management level of our organization could be improved. approach focuses on creating opportunities, building women’s Currently one member of Danisco’s Executive Committee employee networks, and other strategies to encourage strong is female, and roughly 17% of our senior-level managers are female applicants for executive positions. women. Our Executive Board and the Board of Directors has
Employee categories Our 6,890 employees are categorized as follows:
Administration 15% • Male 45% / Female 55% Direct production 31% • Male 83% / Female 17% Indirect production 28% • Male 68% / Female 32% Distribution/ procurement 5% • Male 70% / Female 30% Innovation 10% • Male 47% / Female 53% Sales/marketing 11% • Male 50% / Female 50%
70 SUstainability report 2010/11 People We support the 21% of our employees who are covered by collective bargaining agreements. rights
The size of the Danisco workforce has fluctuated widely with the acquisitions and divestments that have shaped our Employee Turnover company. As of 30 April 2011, we employed 6,890 people worldwide. While most of our employees work full-time, 504 By gender New hires Leavers work part-time and 318 have temporary contracts. Work Male 62% 60% hours for full-time employees are restricted to the maximum Female 38% 40% hours per week allowed by local regulations. By age New hires Leavers Through employee turnover, companies can gain new and <25 32% 23% invigorating ideas, talents and perspectives. At the same time,
26– 40 50% 41% eople it is crucial to retain the knowledge and expertise of their P employees. Consequently, we try to maintain a balance in our 41– 60 17% 26% staffing efforts between acquiring new talent, preserving our >60 1% 10% knowledge and human assets, and providing career growth opportunities for current employees. We aim to fill openings By region New hires Leavers with internal candidates about 80% of the time. Europe / Rest of world*) 43% 48% Latin America 12% 7% In 2010/11 employee turnover including both voluntary and involuntary was 14.3%, up 5.8% from the previous year. As North America 26% 22% we do not distinguish between voluntary and involuntary Asia-Pacific 18% 23% turnover in our systems, we have estimated the voluntary rate *As of 2010/11 Western Europe and Rest of the World have been aggregated to be around 5%, which is similar to 2009/10.
Employee diversity / management diversity
female employees female Management 35% 17 %
employees By Age Management by age
<25 41-60 26-40 >60 41-60 >60
People SUstainability report 2010/11 71 People
E mployee development We invest in the ongoing development of our people by helping employees realize their full potential and by finding ways to make Danisco an even better place to work. Danisco Dialogue – Linking employees’ performance to company goals It is critical that all employees understand the company’s vision and corporate goals. Many of the environmental, health and how their efforts support its realization. Danisco Dialogue and safety targets discussed in this report are reflected in provides a global framework for ongoing dialogue between individual employee goals, especially at the plant level. employees and their managers and helps to clarify the linkage between company objectives and individual goals, ensuring This year, for the first time, we launched a company-wide, alignment with the overall business strategy. Managers and short-term incentive programme, giving employees the chance employees meet to discuss work and personal development to experience the tangible benefits of our company´s financial goals and set milestones, with individual performance then performance. evaluated against agreed-upon deliverables tied to divisional
Danisco Potential – Nurturing employee talent Identifying leadership skills or special talents in our people All employees can take advantage of the many training programs and nurturing those abilities is essential to realizing our full and resources available to them, and individual sites offer capabilities as a company. The Danisco Potential process programs tailored to the needs of their people. Whether the provides a structured means of discovering individual talents goal is to improve job performance or in some other way and aspirations and matching employee development with increase the employee’s contributions to the business, Danisco the needs of the business. Through this process, managers offers online and in-person employee learning opportunities perform succession planning to identify the right people to fill such as product training, IT and systems training, safety and key positions, while specialized training programs then help training in good manufacturing practices. In 2010/2011 we employees prepare to move into different roles. More than developed and launched standard processes, procedures and 300 managers have benefitted from our 10-month leadership tools to administer and track training information for Danisco academy. An online tracking program is also underway to further employees globally. A learning management system (LMS) that improve our leadership development offerings. provides a catalogue of all training at Danisco, enables online registration, manages e-learning content publication and delivery and can generate analytical reports is scheduled for kick-off in October.
Spirit is very important for our group because we take it seriously. When we receive our Spirit results, we sit down as a team and analyse them. Then we work together to develop an action plan based on the results. It works best when everyone is part of the solution” Andy Muller, Regional President Sales & Application Food Ingredients, North America
72 SUstainability report 2010/11 People Danisco Spirit survey results show that 73% of our employees feel Danisco provides them with the opportunity for learning and development. Opportunity E mployee engagement The true value of any business strategy can be realized only to the extent it is implemented by employees engaged in achieving its goals. Perhaps nowhere is this more relevant than in our continued sustainability efforts, where employees are among our most important stakeholders.
We work to nurture a culture in which our people have tool for gauging employee attitudes, eople
a voice in identifying opportunities for improvement – revealing valuable opportunities P whether generating ideas for sustainable product solutions or for improvement, and engaging our innovative operational improvements – and a role in making people in Danisco’s continued role it happen. An important tool toward that end is our annual as a great employer and sustainable Danisco Spirit survey. The survey has become an indispensable business competitor.
Danisco Spirit – Engaging our people We all share the responsibility for – and the rewards of – making An engaged employee, by our definition, is consistently Danisco a great place to work. Our annual Danisco Spirit survey motivated to go beyond expectations and is committed to provides a powerful tool for engaging employees. The survey the company and our customers. We determine the level of gives us a picture of employee attitudes and concerns across the employee engagement at Danisco based on answers to four company, leading to positive changes in policies and practices, key questions in the Spirit survey. While our engagement score as warranted. While it has been gratifying to see Spirit scores of 74% is slightly below the external benchmark, scores for rise over the past three years, the greatest benefits have been 40 out of 41 Spirit questions went up in 2010, with significant the constructive dialogue and planning, more energized working improvement in all of our 2010/11 focus areas. In addition, we relationships and greater internal efficiencies arising from both have identified a number of Danisco managers as “best-in-class” collective and localized actions on the survey results. based on high marks from their direct reports, and are developing programmes that will leverage their leadership qualities – which include good communication, visibility, trust and personal interest and support – through sharing of best practices.
It took some time for everyone to become familiar with our Dialogue and Spirit processes, but now that everyone has gotten the hang of them, they are very strong programs supporting our Danisco Spirit business by driving performance through Information used to come from the top down to the highly engaged teams. They have become employees, but now we communicate more frequently, more openly, and more transparently. an important part of who we are” Ramich Kandasamy, Process Controller, Hanne Ernst, Senior HR Consultant Mohd Shabirin Mansor, Inventory Supervisor
People SUstainability report 2010/11 73 People
Benefits – consistency in rewards The global pay framework we unveiled in early 2010 • Harmonised base salary review dates to 1 May (from as has brought greater equity and clarity to our employee many as 15 dates previously) compensation practices. We have adopted a stronger “pay • Established a global job structure of eight job bands and for performance” approach and become much more explicit associated every job with the appropriate band about how we determine pay in the company. • Launched a pilot sales incentive programme In providing employee wages and benefits, we adhere to This year, for the first time, all Danisco employees have applicable local laws, including those related to maximum been included in a short-term incentive programme, linking working hours, overtime compensation and leave time. employee short-term incentives with company financial We offer our permanent, full-time employees health and performance. Bonuses are usually tied to team financial goals, accident insurance, medical care for employees and their but may include additional targets as well. At the plant level, families, disability insurance, paid parental leave, and flexible these goals are clearly linked to the objectives of the operating work schemes to help our employees maintain a positive unit and may include plant efficiency and sustainability targets. balance between time at home and work. Danisco also offers Annual salary reviews are tied to individual performance goals employee retirement and termination plans that vary by clearly defined through the Danisco Dialogue process. country. Where we offer defined contribution plans, we make contributions to independent pension funds without further To ensure consistency in our global pay processes, we have: obligation. Where we offer defined benefit plans, we provide • Defined global principles for managing the annual base agreed-upon benefits to current and former employees. salary review These defined benefit obligations comprise various salary • Established a global compensation benchmark policy pension plans, and to an immaterial extent, medical plans.
Genencor is among the top 10 best places to work in The Netherlands according status to the Great Place to Work® Institute’s annual survey.
74 SUstainability report 2010/11 People H uman rights and our Code of Conduct Respecting human rights is the foundation for our interactions with our employees, suppliers, customers and the communities in which we operate. eople Social policy P Our social responsibility policy is based on the principles Online availability brought this new code to 90% of Danisco of the United Nations (UN) Declaration of Human Rights employees in its first year, but as discussed in our last year’s and the International Labour Organization Declaration report, the implementation was not effective, resulting in a on Fundamental Principles and Rights at Work. We also training rate of only 35%. We went back to the drawing board. follow the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises and We began 2010 with a new code of conduct, application with have been closely watching the development of the UN the Danish data privacy agency, and final plans for an ethical Guiding Principles on Business and Human Rights recently hotline to provide improved case management capabilities. We endorsed by the UN Human Rights Council on 16 June 2011. put these plans on hold however, in the face of the uncertainty about Danisco’s future. Our social policy requires that: Upon the completion of the DuPont acquisition, we collaborated • Employees receive fair and equal treatment, regardless actively with our new DuPont ethics and compliance colleagues. of gender, race, age, religion, political opinion, social or We have structured a plan to launch the DuPont Code of ethnic origin, sexual orientation, disability or other status Conduct and core values, with it’s accompanying ethics training programme and the DuPont Ethics Hot-line by the end of 2011. unrelated to their ability to do their job • Employees have the right to freely form and join trade unions and to negotiate collectively
• We do not employ forced or compulsory labour Sedex Danisco is a member of Sedex, the Supplier Ethical Data • We do not use child labour Exchange. We chose Sedex as a management tool for ethical • Employees receive fair and lawful compensation data as it satisfies our needs to monitor our own sites, • We support employees’ training and development perform risk assessments as well as meeting our customers’ • We safeguard employees’ health and safety in the requirements for transparency by maintaining data on our own workplace production sites. • We provide a secure work environment During 2010/11, each of our production sites were asked to In 2010/11, Danisco had no confirmed instances of complete a self assessment questionnaire that focuses on four discrimination, child labour, forced or compulsory labour or pillars: Labour Standards, Health & Safety, Environment and violations of the right to exercise freedom of association or Business Integrity. collective bargaining.
Code of Conduct Production % of total Sites Registered Production Sites Maintaining a sustainable, principles-based corporate culture involves communicating clear expectations and values to cultivate the ethical behaviours we expect of our employees. We established our Code of conduct in 2008 with a focus on issues of bribery, facilitation payments, gift giving, political 42 94% donations and charitable contributions.
People SUstainability report 2010/11 75 People H ealth and safety Providing a safe work environment for our employees is of the utmost importance. In fact, employee health and safety was an area of intense focus for the Danisco management in 2010 /11.
Our concern for employee well-being demands that we Intense management scrutiny in this area has already initiated consider the many potential hazards in our workplace, whether cultural change in plants where the emphasis on safety was not physical, chemical, structural, procedural, behavioural or strong enough. To walk the talk, management response to any cultural in nature. We strive to ensure that the Danisco work potential health or safety issue was also strongly emphazised. processes do not expose employees to occupational related Over 2010/11, we experienced a general increase in risk high incidence or high risk diseases. We take a multi-pronged assessment and avoidance with a number of concrete programs approach to minimizing risk and improving safety performance and actions implemented. These actions, combined with active, at our sites by: joint labour/management safety committee participation has increased our focus. In 2011, 73% of our sites have an active • Leveraging local best practices at the company level as health and safety committee. appropriate • Introducing an IT-based risk assessment tool for In principle our lost-time injury (LTIs) target is zero, but in evaluation and annual review at all plants in 2011/12 order to keep focus in the short term we developed a target • Linking Danisco Dialogue targets to safety improvements to limit LTIs to no more than 2.0 per million work hours. for factory personnel Globally, Danisco divisions experienced 3.8 LTIs in 2010/11, • Investing in new equipment or other plant improvements up 15% from the previous year. While our LTIs are clearly of concern, it is worth noting that the seriousness of the injuries, based on the number of working days lost per injury, Lost-Time Injury (LTI) frequency has declined and with no fatalities. and severity rate
5.0 25.8 In 2011, we will 4.0 align our health and 3.0 12.6 safety approach and 2.0 7.4 strategies with
1.0 4.8 3.3 3.8 2.0 DuPont
0.0 2008/09 2009/10 2010/11 2012 LTI frequency (number of employee lost-time injuries with one or more lost scheduled working days per million working hours) Severity rate (lost scheduled working days per employee accident)
LTI frequency and severity rate
By gender By gender Region LTI frequency Male Female Severity rate Male Female Europe / Rest of world 0.5 0.2 0.4 16.0 5.0 21.5 Latin America 2.2 2.2 0.0 9.0 9.0 0.0 North America 2.4 2.4 0.0 7.5 7.5 0.0 Asia-Pacific 17.1 14.3 2.8 6.4 6.9 3.8
76 SUstainability report 2010/11 People We have achieved OHSAS 18001 occupational health and safety standard certification at 40% of our sites, with a 56% certification rate expected by 2013. C ERTIFICAtion
Occupational illness frequency and severity
By gender By gender Region Occ. illness frequency Male Female Occ. illness severity rate Male Female Europe/Rest of the world 0.4 0.2 0.2 7.5 10.0 5.0 Latin America 0.0 0.0 0.0 0.0 0.0 0.0 l
North America 0.3 0.3 0.0 1.0 1.0 0.0 p
Asia-Pacific 0.0 0.0 0.0 0.0 0.0 0.0 Peo e
Understanding the problem and setting priorities Investing in solutions All sites were surveyed in 2010/11 to determine local We are making the most significant investments in safety management’s views on the relative risk and importance of key improvements at those Enablers sites where challenges have environmental and safety issues – to ultimately help us establish been greatest: Zhangjiagang in China, Landerneau in France and corporate standards that better align risk management practices St. Joseph in the United States. company-wide. Feedback from plant managers included the following: When we acquired our gums production site at Zhangjiagang in 2006, it did not meet Danisco standards and the safety performance record • Mechanical equipment – Eliminating pinch points and was poor. Our initial changes were so successful that the local work machine guarding safety bureau now uses the plant’s annual safety education efforts as • Chemical and biological issues – Improving chemical an example to other companies. To improve the site further, a new handling and storage central distillation unit is being installed to recover the alcohol used • Manual handling – Improving ergonomic aspects in processing, and we are upgrading and expanding one of the three • Investigation of incidents – Developing a consistent production lines. In addition to improving worker safety and air quality, approach to accident investigation and root cause analysis these upgrades will reduce energy use. In addition, all sites in the Enablers Division completed a safety questionnaire, focusing on the main causes of injuries and The focus is quite different at the St. Joseph site, which depends, to support the formulation of action plans to address them. to a great extent, on manual labour. Solutions include measures Action plans included new procedures, employee education to intensify safety communication and investments in key and/or structural changes. structural areas. In Landerneau, we focused on process upgrades to reduce risk. In both St. Joseph and Landerneau, plans have been developed for significantly reducing manual handling and To better address these issues, the Enablers Division has improving overall safety. established occupational health and safety principles supported by standards including: alignment of risk management approaches; safe driving behaviour; support of team discussions, return to Globally, employees are encouraged to provide input to develop work initiatives; and investigation of incidents. creative solutions through a variety of channels. In many of our locations employees are rewarded for their participation in the solutions including trips and monetary awards.
Case study
Six years without a lost-time injury With a team of 75 employees, the Thomson, Illinois Sweeteners plant took six years to reach the milestone of 1 million working hours without a lost- time injury. Furthermore, 52 of the 75 employees have been with the company for the entire six-year period. It has been an important accomplishment for both veteran employees and new employees to maintain performance with the significant changes in the business over the same period.O ver the past six years the site has focused on a combination of management commitment, behavioural safety programs, and various standards to help identify and control risks.
Employees of the Thomson plant maintain that one cannot rely solely on the engineering safety of the systems. Yes, engineering has its part and responsibilities, but safety is a behaviour that all employees have to live every day. The team has already set their sights on the next goal of working two million man-hours without an LTI.
People SUstainability report 2010/11 77 People
Spotlight on Dangé-Saint- Romain The 175 employees who work in our Dangé-Saint Romain facilities in France serve a growing global need for solutions that create healthier foods using biologically active ingredients.
State-of-the-art research facility Employee engagement Designed to encourage creative and innovative work, Dangé-Saint-Romain hosted two employee meetings in the site’s new BioScience Development Centre includes November 2010 to generate ideas for the Danisco Innovate advanced research facilities and a pilot plant to facilitate program. The program is designed to tap the creativity of creation of new starter cultures. Completed in 2009, the Danisco employees in identifying unmet consumer needs center meets the certification requirements of the French and generating ideas for future Danisco products. Given that High Environmental Quality programme and features solar the site’s staff consists of roughly equal numbers of R&D, energy for hot water, electrical and light savings and skylights production and marketing/sales employees, the Dangé-Saint that maximize natural light and create a pleasing atmosphere Romain team represents a diversity of talent and perspective. for the scientists who work there. Together, a group of 32 people generated and submitted 78 ideas, the fourth-largest number submitted by any Danisco site. Employee-driven safety and environmental programmes Employee observation teams and regular equipment inspections shape the safety-focused culture at Dangé-Saint Romain. As part of a behaviour-based safety programme, ten teams of three employees regularly conduct audits in all departments. These employees are specially trained to explain to colleagues when and why safety practices require a behaviour change. Safety messages are also reinforced through campaigns that remind employees to “think before acting.” Everyone appreciated the free discussion A similar approach is used in identifying opportunities for and the mood of the brainstorming. We environmental improvements. An employee environmental committee meets every two months to discuss measures for all felt like we created something real. It saving energy and water. To date, savings have been realized was a good way to break the silo feeling by shutting down the site’s cooling machines when the freeze dryers are not in use, reducing the water used for cleaning and we sometimes have at a site like Dangé” focusing on the use of heating and lighting. Jean-Claude Denis, Site Manager
78 SUstainability report 2010/11 People
eople P 79 d Aligne he localized, The localized, tainability report 2010/11
s SU ew District was selected n addition to economic due
eople People he plot land of in the Wuxi N he most recent example this of was in 2005 when we sited because it was one the of only locations in the area that how our work has been helpful and how we could be more families. for local programmes that have proven extremely valuable to facilities. While we did not enter any new communities in the unintended effect dampening of employee enthusiasm those communities and organizations identified locally, as in examplesthe here. profiled the reporting period we will maintain our established due- would prevent the displacement local of farmers and their residents and impacts on transport, noise and infrastructure. additional guidelines would be regarded as restrictions, with diligence, environmental and social aspects were considered. effective. Contact us at [email protected] our facility in Wuxi, China. I diligence process in the future. communities in their need. For we continuenow, encouraging our facilities and offices to lend their charitable support to community prior to entering the community by using a filter sustainabilityof core issues like environmental impacts, job creation and access to talent, potential displacement of Community diligence due We welcomeWe feedback from community members about have takenWe a systematic approach to how we locate our assessWe the impacts our of operations on the local
T T
w
eloit, contributing to rindsted or partnering in herapeutic Food, they ndia on an affordable food initiative eady to Use T F – R T U
urgaon with Compact I lthough we have debated the value creating of global criteria ecause decisions about engagement in community projects local offices, ourcommunity spirit has many faces. Whether link between their work and Danisco’s objectives. betweenlink their work Danisco’s and both civic commitment and creativity in contributing to the communities where they work and live. where they work and creativity in contributingboth civic commitment to the communities and live. but extremely widespread, nature of our community support nature of our community demonstrates ingrained deeply widespread, sustainability has how extremely but become in our corporate culture. for community volunteering and philanthropy, we believe to develop R meaningful solutions that make a sustainable difference. B employees. Worldwide, this culture of initiative provides our 6,890 employees with the flexibility to demonstrate with the flexibility our 6,890 employees provides this culture of initiative Worldwide, employees. decision-making and actions, while keeping us nimble and strategic, and engaging and inspiring our diverse and strategic, us nimble keeping while actions, decision-making and and support charitable of organizations rest with Danisco’s a local cultural and sports centre in G clearly take satisfaction in meeting local needs with locally our employees are donating bicycles in B G According to our Danisco Spirit annual survey, 82% of our employees see a clear a clear see employees our of 82% Spirit survey, toDanisco annual our According
A Communityand society he social dimension of our commitment to sustainability centres on a set of shared principles of our commitment to sustainability centres The social dimension guide our that he local community is providing us with raw materials, and we try to support them in terms technology of and the economy. have evenWe hired a university to help find better ways to use their product. are We here for them and because them. of Community & society T Augustin Orozco, Engineering Manager - Tecoman, Mexico Case study People
Overcoming economic barriers via technology Danisco and its employees invest time, money and personal effort in helping to strengthen the communities in which we work. But our technology can make important contributions, too, as in the case of smallholder dairy farmers fighting the limitations of poverty in developing countries. In countries where the creation of an organised dairy industry is still in the early stages, refrigeration is often simply not be feasible for economic and/or practical reasons. Through a two-year CSR project jointly funded with the Danish International Development Agency (DANIDA) – an organization inside the Ministry of Foreign Affairs of Denmark – Danisco has set out to deliver protection of raw milk as an acceptable alternative to refrigeration. Danisco’s solution is based on hexose oxidase (HOX), an enzyme that catalyses the oxidation of various mono- and oligosaccharides, resulting in lactones and hydrogen peroxide. HOX is used to generate hydrogen peroxide, which in turn provides natural antimicrobial protection for the milk. In in-house feasibility studies, HOX has successfully extended the shelf life and quality of milk for up to 12-15 hours without cooling. Using our technology, smallholder farmers will be able to deliver morning milk and evening milk to the market at the same time and reduce milk wastage significantly. It will make it possible to increase production and create increased value for individual farmers. And by eradicating milk deterioration during transport, the solution will also improve raw milk quality at the time of processing.
Project activities The project entails work to prepare HOX for commercialization, including application trials in Kenya to evaluate safety and efficacy under local conditions, as well as petitioning for regulatory approval of HOX in raw milk from relevant authorities. It will also encompass distribution channel studies, marketing studies, income studies and profitability studies for smallholder farmers and the dairy processing industry. We anticipate launching the application commercially in 2013.
Local partner in Kenya Just as our technology can help build stronger local economies, sharing our knowledge can play an important role in nurturing the growth of innovation and sustainable business. Toward that end, as part of the initiative, Danisco will partner with Egerton University, Food Science & Technology, in Nakuru, Kenya. As an active participant in the project, we expect Egerton University to gain a deeper understanding of dairy applications that will, in turn, support the development of Kenya’s emerging dairy processing industry.
Planting trees and helping schools in Tecoman, Mexico On World Environment Day, Tecoman employees and their It brings me much happiness to see how families planted Casuarina pine trees as part of a Harvesting our company helps the community, and it the Future event. The children named their trees and will provide care for these “adopted” family members as they was nice to see the smiles of the children grow. Employees in Tecoman also donated computers to and the gratitude from the teachers local schools, including one school that had never before had computers. when they received the equipment” Geraldo Alvarez, IT support - Tecoman, Mexico
80 SUstainability report 2010/11 People Genencor’s Amazing Challenge logged 4,867 community action hours. United
Making the world greener through community action Through last year’s highly successful Amazing ‘Round the World Challenge, our Genencor employees helped change the world for two families in need and provided financial support to a local orphanage in Cape Town, South Africa, Genencor’s newest site. eople P This year, the Genencor team defined a new ambition: to have a significant impact on the sustainability of every household around the globe. The key to realizing that goal, the team agreed, is community action. Genencor’s Amazing Challenge 2011: Community Action ran through April and May 2011, with teams and individuals volunteering their time and talents for community and charitable causes with a focus on sustainability and the environment. For additional inspiration, employees were issued a challenge: log at least 2,500 total volunteer hours, and the division will The range of community activities Genencor employees donate USD 10,000 to the World Wildlife Fund (WWF). participated in was broad: from Andrew Riley, in the UK, By the end of the two-month campaign, the team had helping to pick up litter along a local road, to Wuxi hosting exceeded its goal by 2,367 hours, making the world a little a series of Earth Day activities where employees pledged to greener and helping WWF conserve nature and protect do at least one thing that is environmentally friendly in their natural resources. daily lives, to Brugge where the team collected both clothes and food items for those in need. Enzymes in action The Challenge also raised employee’ awareness of the Employees in action ways in which Genencor enzymes make the world greener. Each participant was asked to record his or her volunteer As employees worked to make their communities more hours in an online system and share stories, photos and sustainable, they wore t-shirts produced with unique Twitter updates with each other. With each new posting, the Genencor enzymes that support sustainability in textiles. world map featured on the site displayed another tree (for Replacing traditional enzymes with our Oxy-Gone® Catalase 10 or more volunteer hours) or leaf (for less than 10 hours), in the pre-treatment phase and Primafast® Cellulase for so employees could witness the world becoming “greener” biofinishing reduces energy and water consumption, chemical through their efforts. use and processing time in fabric processing.
Our employees can feel proud of what they contribute to their communities through the time and effort they give to local causes, and they can feel just as good about what they contribute to making a better world through their work at Genencor” Lisa Zanetto, HR Director, Genencor
People SUstainability report 2010/11 81 Our company
We build competencies A value-driven company Our core values define We We 7create believe in who we are, what we do, value Danisco dialogue and how we do it. They guide our relationships values with customers, stakeholders and each other. We are We take innovative responsibility
82 SU SUstainabilitystainability report report 2010/11 2010/11 Ou Our Companyr Company O ur company Danisco A/S was formed in 1989 through a merger of the two old C.F. Tietgen companies, Danish Sugar and Danish Distillers, with Dansk Handels- og Industri Company (Danisco A/S). On May 19, 2011, DuPont, through a wholly- owned subsidiary, completed the acquisition of approximately 92.2% of the outstanding shares of Danisco pursuant to a previously announced tender offer for all of Danisco’s outstanding shares, excluding treasury shares. The Danisco businesses will remain, as a part of DuPont, one of the world’s leading producers of food ingredients and industrial ingredients to industry.
We have 112 locations in 40 countries. This gives us India, France, Denmark, USA and Brazil and have innovation proximity to our customers, strong local market knowledge centers in Australia, Singapore, California, Finland, China and and limited transport from raw material to finished product. Denmark. Our largest market places are Europe and the USA, We have production facilities in countries such as China, but we also see solid growth in Asia and Latin America.
Our Company SUstainability report 2010/11 83 Our company Our business and products With a diverse and ground-breaking portfolio, Danisco is a world business-to-business leader in food ingredients, enzymes and bio-based solutions. Using nature’s own materials, science and the knowledge of our 6,890 people, we design, produce and deliver bio-based ingredients that meet demand for healthier, safer and more sustainable products. Since our company’s inception, we have been working to identify and manage our environmental and social responsibilities. In 2008, we began setting sustainability targets that are ambitious and science-based, encompassing operational performance, employee initiative, and a fully integrated approach to devising sustainable solutions.
Danisco’s ingredients are used globally in a wide range of Raw materials industries – from bakery, dairy and beverages to animal feed, Danisco uses thousands of raw materials with most coming laundry detergents and bioethanol – to enable functional, from agriculture. Our key raw materials include vegetable oils economic and sustainable solutions. Danisco’s key focus is to (such as palm oil, soy bean oil, rapeseed oil and castor oil), citrus become our customers’ first choice and a truly market-driven peel, seaweed, locust beans, guar seeds, corn, wood pulp, soy global business. meal and sugar. Using nature’s raw materials, the knowledge of our people around the world and the latest scientific methods, Food ingredients we create sustainable solutions that help people lead healthier, Danisco delivers bio-based food ingredients to more than safer and more convenient lives. 5,000 customers globally, including the world’s leading food manufacturers. We strive to be their first-choice provider Our sustainability approach for a global food industry that seeks healthy and safe natural We embed a sustainability mind-set throughout our value ingredients founded on sustainability. Our key focus areas chain and within our organization through a strong reliance include BioActives (cultures and natural sweeteners) with a on Life Cycle Assessments of the impacts of our materials and clear health and nutrition profile and Enablers (emulsifiers, products from cradle-to-grave and a commitment to develop pectin, gum and systems) that offer increased functionality to the potential within our own employees. Our sustainability processed foods. targets are science-based and driven by our sustainable sourcing, operational efficiency and sustainable solutions strategies. Enzymes and bio-based solutions Looking ahead to the resource constraints a population of nine Today, major application areas for enzymes include industries billion people in the year 2050 will bring, we believe in turning as diverse as animal nutrition, detergents, bioethanol, textile future challenges in food, health, chemicals and energy into treatment, carbohydrate processing and food and beverages. business opportunities. Our world-class innovation teams are As the world’s second-largest developer and manufacturer of driving our efforts to develop sustainable products that will industrial enzymes, Danisco holds prominent market positions meet future needs in these areas. in all major segments. Danisco’s Genencor Division is a top 10 leader in global biotechnology. As a leading force in innovation To learn more about Danisco, please visit www.danisco.com in the white biotech space, Genencor addresses previously unmet needs as it creates the sustainable products of the future.
I n 2010 /11 Danisco recorded revenue of 15. 5 DKK billion
84 SUstainability report 2010/11 Our Company VISION MISSION STRATEGY To be the First choice provider To help our customers increase their To create value through: of bio-based ingredients to competitiveness through innovative, • organic and acquisitive growth by industry globally sustainable and bio-based ingredient leveraging and strengthening our solutions that meet market demand market access, applications and technology platforms for healthier and safer products eople • talented and engaged people P r r Ou r Company Ou r
Organisation Ownership The Danisco Group comprises two business segments: Food On May 19, 2011, DuPont, through a wholly-owned Ingredients and Industrial Enzymes. Danisco is organized into subsidiary, completed the acquisition of approximately four divisions – Enablers, Sweeteners, Cultures and Genencor 92.2% of the outstanding shares of Danisco A/S (“Danisco”) – and BioActives. BioActives is comprised of the Cultures and pursuant to a previously announced tender offer for all of Sweeteners divisions as well as our Health & Nutrition platform. Danisco’s outstanding shares, excluding treasury shares.
The remaining outstanding shares are in the process of being acquired through a compulsory acquisition procedure in accordance with Danish law. This procedure is expected to be completed during the third quarter of 2011, at which point DuPont will own 100% of Danisco’s shares.
Our Company SUstainability report 2010/11 85 Our company
Economic key figures In 2010/11 we continued to take important steps towards In 2011/12, we expect to see moderate, positive growth as part meeting our strategic ambitions, and our business of DuPont. performance showed sustained improvement over the year. Focus has been on performance, growth and leadership. Government grants During the financial year Danisco received government grants Group financials for research and development of DKK 9 million (2009/10 In 2010/11, Danisco recorded revenue of DKK 15.5 billion DKK 2 million), DKK 5 million (2009/10 DKK 1 million) for against DKK 13.7 billion last year. All four divisions and all regions investments and DKK 3 million (2009/10 DKK 6 million) for contributed positively. EBIT (before BCP) came in above DKK 2.4 other purposes. Further, Danisco was granted quotas of 49,555 billion for the year, up from DKK 1.8 billion last year, reflecting a tonnes of CO2 allowances (2009/10 49,551 tonnes). The value margin enhancement of 2.7 percentage points Y/Y to 15.8% that at grant date was DKK 5 million (2009/10 DKK 5 million), and came from all four divisions. Bio Chemicals Projects – covering the quotas match the expected emission tax. our collaborations with DuPont and Goodyear – recorded total costs of DKK 174 million for the year. Events after the reporting period In January 2011, following a structured bidding process that Special items came in at DKK 326 million, where DKK 292 had lasted several months, our shareholders received an offer million relate to DuPont’s offer to the shareholders. We booked from DuPont to acquire Danisco. The bid was recommended by income tax of DKK 586 million, reflecting a tax rate of 34%, Danisco’s Board of Directors as attractive, clearly representing leading to a profit of DKK 1.2 billion for the year, against DKK full and fair value, and in May 2011, more than 90% of our 0.5 billion last year. Cash flow from operating activities came shareholders had chosen to accept the offer from DuPont. Danisco in at DKK 2.2 billion against DKK 2.6 billion last year. CAPEX subsequently de-listed from the stock exchange in June 2011. came in at DKK 1,026 million, against DKK 733 million last year. Environmental and human rights investments Danisco closed the year with a net interest-bearing debt of Environmental, health and safety investments and expenditures DKK 2.9 billion against 3.0 billion last year. This resulted in are categorized into those related to cleaner technology, a gearing of 0.9 times EBITDA (last 12 months’ continuing pollution control, energy savings and health and safety. We operations). RONOA for the Group came in at 25.7% against invested DKK 180 million in 2010/11, which represents roughly 19.0% last year. 17% of our total investment expenditure. We did not have any investments in 2010/11 that were significant enough to perform a human rights investment analysis.
Danisco key figures
2 0 10 /11 2 009/10 2008/09 2007/08
Number of employees 6,890 6,876 6,999 9,219
Revenue (DKKm) 15,500 13,706 12,991 18,778
Equity (DKKm) 12,165 12,505 12,140 12,542
Net interest-bearing debt (DKKm) 2,854 3,007 4,739 9,545
Total assets (DKKm) 19,726 20,508 21,278 27,943
Operating costs (DKKm) 10,194 9,690 9,191 7,588
Employee expenses (DKKm) (3,278) (3 ,117 ) (3,355) (3,437)
Change in equity (DKKm) (340) 365 (402) (407)
Payments to government 1) (DKKm) (460) (390) (359) (590
Community investments 2) (DKKm) (945) (650) (773) (626)
1) Including taxes and related penalties 2) Including donations and infrastructure investments
86 SUstainability report 2010/11 Our Company Bringing sustainability to the top Sustainability issues are very visible at the top level of Danisco’s management as the Executive Committee (EC) is responsible for the ownership of Danisco’s sustainability strategies and targets. This group, made up of the CEO, CFO and senior leaders from human resources, sales and the divisions, allocates resources and manages economic, environmental and human resource decisions. This provides a direct vehicle for holding the divisions accountable for eople
implementing sustainability targets. P r r Ou
The corporate sustainability team, headed by Jeffrey Hogue, Policies and guidelines Company Ou r reports directly to CEO Tom Knutzen and has presented new An important part of our management approach is initiatives to the Board of Directors, as well as reaching the to provide the necessary guidance to ensure that our Board through the EC and the CEO. Sustainability is solidly employees are informed and aware of our key focus areas, embedded in our business process as directives flow in a clear including: control of major risks, compliance with regulations, path from the EC to the divisional leaders and eventually to conformance with customer and societal requirements, the plant managers. Sustainability targets are also championed over-arching commitments, and positions on key issues. across the organization by a corporate-wide group of approximately 90 sustainability team members. Our approach to setting policies and developing guidelines is a pragmatic one. In alignment with our core values, we seek to Governance structure provide guidance for those key focus areas which are essential Danisco is governed by a two-tiered system with a separate to meeting responsible business practices. For the most part, Executive Board and a Board of Directors, as required by many of our important polices and guidelines can be found Danish law. The Board of Directors is responsible for the overall publicly on Danisco.com, our internal document management management of Danisco and the appointment and dismissal system and intranet portal. These policies are reviewed of the Executive Board. The six shareholder-elected members on an annual basis to ensure relevance with our current of the Board of Directors are independent while additional business associated material issues. As an example we recently members are elected by Danisco’s employees in Denmark. The updated and reissued our policy on use of animals in product Board’s Nomination Committee seeks members who bring development and testing from investor stakeholder input. professional expertise in areas that complement the company’s needs, as well as a balanced age and gender distribution on the New policies are developed in collaborative settings Board. The Executive Board is responsible for the company’s with appropriate governance and approval processes to day-to-day management while the Executive Committee, ensure accountability and ownership. In this light, Danisco Danisco’s management forum, meets monthly to coordinate has developed a number of policies, position papers and and review progress against the company’s strategic plan. CEO guidelines that can be found on our corporate website: Tom Knutzen and CFO Søren Bjerre-Nielsen preside over • Safety, health and environment policy the EC and report on strategic performance to the Board of • Quality and food safety policy Directors and investors quarterly and annually. • Sustainable water use policy • Packaging policy Board members receive a fixed annual remuneration and are • Employee Code of Conduct (bribery and corruption not included in any share option programmes or bonus schemes. policy) The remuneration is fixed on the basis of market terms and • Social policy (human rights policy) reflects the workload, competence, requirements and number • Supplier Code of Conduct of Board meetings attended. The Board of Directors reviews the • Policy on use of animals in product development and remuneration of the Executive Board to ensure a balance that testing encourages value creation and excellent individual performance. • Position paper on modern biotechnology • Position paper on genetically modified microorganisms
(GMM) in enzyme production
• Position paper on strain development
and biodiversity utilization
Congratulations to the first place winners of the Danisco Knowledge Award competition. Students from the University of Arkansas (USA) created “i-Chips”, NOTABLE a tasty, gluten-free alternative to regular chips using five Danisco ingredients.
Our Company SUstainability report 2010/11 87 Our company
E xternal commitments Consistent with our emphasis on strong corporate citizenship, Danisco has adopted several voluntary charters and principles United Nations initiatives that apply to our global operations. Danisco supports the United Nations Global Compact’s universally accepted principles regarding human rights and INITIATIVES AND COMMITMENTS corporate citizenship and became a signatory in 2003. “The UN Global Compact is an extension of our own values. It is Organization and initiative Date of adoption important that we are part of this broad group of signatories International Chamber of who give legitimacy and support to this worldwide standard,” Commerce Business Charter 1992 says CEO Tom Knutzen. These principles are echoed in our for Sustainable Development Code of Conduct, sustainability work and corporate policies. We have also signed the UN Caring for Climate initiative to Global Reporting Initiative 2001 demonstrate our leadership and communicate our engagement UN Global Compact 2003 in addressing climate change.
OECD Guidelines for 2003 Multinational Enterprises
UN Caring for Climate 2007
COP16 Cancun Communiqué 2010
P ublic policy We also participate in several trade/industry associations dedicated to pursuing sustainable solutions in our industry. • Global Bioenergy Partnership • International Food Additive Council (IFAC) • American Cleaning Institute (ACI) • International Organization for Standardization 26000 • Biotechnology Industry Association (BIO US) (Guidance on Social Responsibility) • Business for Social Responsibility (BSR) • International Life Sciences Institute • Confederation of Danish Industry • OECD´s Working Party on Industrial Biotechnology • The European Association for Bioindustries (EuropaBio) • Round Table on Responsible Soy Association (RTRS) • European Biofuels Technology Platform • Roundtable on Sustainable Palm Oil (RSPO) • European Convention on Global Sustainable Bioenergy • The Sustainability Consortium • European Food and Drink Association (CIAA) • World Business Council for Sustainable Development • European Food Sustainable Consumption and Production • The WRI/WBCSD Scope 3 and Product Life Cycle Round Table Climate Standards • Roundtable on Sustainable Biofuels • European Technology Platform for Sustainable Chemistry According to Danicso’s anti-corruption policy, we do not engage • Federation of European Specialty Food Ingredients in political activities, nor provide contributions or other support Industries (ELC) to political parties, local candidates or committees.
88 SUstainability report 2010/11 Our Company R ecognition and awards We were honoured that our 2009/10 Sustainability Report won the top award from the Institute of State Authorized Public Accountants in Denmark. This eople recognition of our hard work to embed sustainability P r r throughout our organization and to communicate with Ou our stakeholders was very gratifying. Company Ou r
In 2010/11, Danisco was also included in a variety of prestigious sustainability indices that track company performance according to social, environmental and financial criteria.T hese indices provide investors with objective benchmarks in identifying the companies that lead the field in corporate sustainability. In the future, Danisco will participate as a part of the DuPont disclosures and questionnaires.
• The Dow Jones Sustainability World Index – The only business-to-business company included in the food From left: Tom Knutzen, former CEO, Danisco A/S, Jeffrey Hogue, VP of Corporate Sustainability, Danisco A/S and Preben Sørensen, Chaiman of and beverage sector since 2002. the Independent Award Judging Panel.. www.sustainability-index.com
• FTSE4Good – our 9th year included as a member www. ftse.com/Indices/FTSE4Good_Index_Series/index.jsp
• OEKOM Research – Ranked as a prime sustainability investment www.oekom-research.de/index_en.php
• NASDAQ OMX Nordic Sustainability Index www.omxnordicexchange.com/produkter/index/OMX_ index/Responsible_Investment
• Carbon Disclosure Project – Ranked no. 3 in Denmark and no. 7 in the Nordic countries. Listed as one of five Nordic companies in the Carbon Disclosure Performance Index. www.cdproject.net/en-US/Pages/HomePage.aspx
• Forest Footprint Disclosure Index – Ranked as the sector leader for 2 years running. www.forestdisclosure.com
Our Company SUstainability report 2010/11 89 O ur company R eporting Our sustainability model is a collaborative one – relying on the creativity, engagement and dedication of our employees, suppliers, customers and other stakeholders. It is critical that we convey our sustainability philosophy and commitments to these partners in our sustainability journey. We follow accepted international protocols in our reporting which allows comparability among companies. External benchmarking confirms our sustainability leadership role as shown through our inclusion in numerous sustainability indices. The current report follows our 2009/10 report entitled “Ingredients for sustainability” issued on June 21, 2010.
Reporting practices We follow the Global Reporting Initiative’s (GRI) G3 Guidelines sites and several of our major R&D sites are covered. There (www.globalreporting.org), the most widely used, credible and are several sites that have not yet reported into our central trusted global framework for reporting on social, environmental data collection system. We have estimated the performance and corporate citizenship issues. For the first time, we are also for these sites and have included the estimates in our KPI referencing the ISO 26000 social responsibility standards. These performance figures. standards provide guidance to businesses and the public sector on integrating social responsibility into decision-making and Performance data for DuPont Danisco Cellulosic Ethanol were released in November 2010. LLC (DDCE) and toll manufacturing sites are not included in the report. Our reporting year runs from 1 May to 30 April In determining the scope of this report, we considered issues matching our financial year. across our value chain and reviewed all indicators in the new GRI G3.1 Guidelines, as guidance. We performed a thorough Social and economic data materiality analysis, sought input from our stakeholders, The social and economic data covers 100% of our employees and considered the larger global sustainability context as and sites. discussed in the Stakeholders and strategies section of this report. We have tried to report on all core and additional GRI indicators, unless specifically noted in the GRI/ISO Data accuracy 26000 content index as not material to our business. We believe we are presenting a reasonable and balanced picture This year systematic improvements have been established both of Danisco’s sustainability performance. Summary practices related to processes for data collection, internal approval and and principles are stated here. Follow the link for more validation. Furthermore, new reports have been developed to information on our Reporting Principles and the GRI/ISO support the data retrieval process and data governance. 26000 content index. The report utilizes a three step validation process including third- party independent assurance of reported data, and included Scope claims and statements. Health and safety data related to LTI frequency and severity This year we evaluated certain systematic errors in the data The scope of this data for 2010/11 covers all sites with collected, which have been corrected in the 2010/11 report. production and/or R&D activities, including all joint ventures. In most cases, the data changes observed are not significant (<1%). In the case of renewable energy the values reported This year we have added the following R&D and administration in 2009/10 were reduced by 38% when a more accurate sites: Cotia, Brasil; Brabrand, Denmark; Paris, France and reporting procedure was applied in 2010/11. Copenhagen, Denmark. For greenhouse gas emissions we further clarified our The health and safety data covers 92% Danisco employees. compliance with the WRI/WBSCD Greenhouse Gas The 8% not included in the data-set are working in smaller sales Protocol, by removing biogenic CO2 and dry ice from our offices, where the risk of work related injuries usually is minimal. Scope 1 and 2 emissions. Carbon dioxide from biogenic sources and dry ice sublimation is now included in the Environmental data “Biogenic and Renewables” category. The environmental data covers 100% of our major sites. This represents 75% of our global employee base. All production
90 SUstainability report 2010/11 Our Company Our website ranks first in our sector in H&H Webrankings’ benchmarking of the website performance of top companies. We also scored the maximum ranking for NOTABLE our CSR and sustainability pages at www.danisco.com/sustainability.
GRI application
This year we have used the new GRI G3.1 as guidance, but have applied the G3 principles to our reporting. In assessing this report’s content against the criteria in the GRI G3 Application Levels, we have internally determined that it has reached the A (highest) level. In evaluating our GRI compliance, we applied the following principles: e P
• Where the aspect does not meet our materiality r r Company r
threshold as defined in the RIG Sustainability Ou ople Reporting Guidelines, we explain our rationale Ou in the GRI/ISO 26000 content index. • When the aspect is material, but the indicator is less suitable to Danisco’s organizational context, we provide a contextual response in the section referenced in the GRI/ISO 26000 content index. • If the aspect and the indicator are material and specific reasons prevent us from reporting on a particular indicator, we explain our rationale in the section referenced in the GRI/ISO 26000 content index, according to GRI’s four reasons for omission. • We did not however, apply the GRI Food Industry Sector Supplement Guidance as it is not mandatory in the reporting year. Our external assurance provider, Deloitte, has also completed an Application Level check of the report against the criteria for the GRI G3 Application Levels and has confirmed that the report meets Application Level A+.
Please follow this link to our Reporting Principles and the GRI/ISO 26000 content index.
Our Company SUstainability report 2010/11 91 Our company Assurance Independent auditor’s report on Danisco’s Sustainability Report 2010/11.
To the Management of Danisco A/S Conclusions We have reviewed the Danisco Sustainability Report 2010/11 In conclusion, in all material respects, nothing has come (”the Report”). The Report is the responsibility of and has to our attention that causes us not to believe that: been approved by the Management of the Company. Our responsibility is to draw a conclusion based on our review. 1. Danisco has established systems at corporate level to identify and manage material sustainability We have based our approach on emerging best practice aspects as described in the Report. and standards for independent assurance on sustainability reporting, including ISAE 3000, ”Assurance Engagements 2. Danisco has applied detailed procedures to identify, other than Audits or Reviews of Historical Financial collect, compile and validate the data and information Information”, issued by the International Auditing and about environment, health & safety, social and Assurance Standards Board. The objective and scope economic performance to be included in the Report of the engagement were agreed with the Management as described on pages 90-91. The data for 2010/11 of the Company and included those subject matters on as presented in the Report are consistent with the which we have concluded below. Data for the reporting data accumulated as a result of these procedures years 2008 and before were not included in our review. and are appropriately reflected in the Report.
Based on an assessment of materiality and risks, our work 3. Danisco has implemented and locally adopted as included analytical procedures and interviews as well as necessary the management systems referred to a review on a sample basis of evidence supporting the in item 1 above at the reporting units tested by subject matter. We have interviewed members of the us. The data for 2010/11 from these units have Management responsible for environment, health & safety been reported in accordance with the procedures and social responsibility at corporate and divisional levels referred to in item 2 and are consistent with as well as at the reporting units: Brabrand, Denmark, the source documentation presented to us. Dangé, France, Penang, Malaysia and Tecoman, Mexico. 4. Danisco applies reporting practices in accordance with We believe that our work provides an appropriate its objectives and principles for reporting, and these basis for us to conclude with a limited level of assurance practices are aligned with the Global Reporting Initiative on the subject matters. In such an engagement, less (GRI) reporting principles as described on page 91. assurance is obtained than would be the case had The GRI Index referred to appropriately reflects the an audit-level engagement been performed. extent to which the Report aligns with the indicators in the GRI Sustainability Reporting Guidelines.
Copenhagen, 29 June 2011 Deloitte Statsautoriseret Revisionsaktieselskab
Anders Dons State Authorised Public Accountant
Preben J. Sørensen State Authorised Public Accountant (Corporate Responsibility)
92 SUstainability report 2010/11 Our Company eople P r r Ou r Company Ou r
Our Company SUstainability report 2010/11 93 About Danisco With a rich and innovative portfolio, Danisco is a world leader in food ingredients, enzymes and bio-based solutions. Using nature’s own materials, science and the knowledge of our 6,890 people, we design and deliver sustainable ingredient solutions that meet market demand for healthier and safer products to a growing global population. Headquartered in Denmark and operating from more than 80 locations, our key focus is to become our customers’ First choice and a truly market-driven global business particularly in the areas of food, health, energy and chemicals. In May 2011, DuPont acquired Danisco forming a global leadership position in Nutrition & Health and Industrial Biosciences. Find out more at www.danisco.com
Danisco A/S Langebrogade 1 P.O. 17 1001 Copenhagen K Denmark Tel: +45 3266 2000 Fax: +45 3266 2175 www.danisco.com [email protected]