tainability report tainability S Su 2012 ORKLA BÆREKRFTSRAPPORTSustainABiLiTy report / 2012 / 2012 contents HigHligHts in 2012 03 Foreword 04 orkla’s corporate responsibility 06 Food, People and the Environment 06 Anti-corrution and competition law 09 Awards to Orkla companies 10 Stakeholder dialogue in 2012 11 people 12 People and leadership 12 Building a strong company 17 environment, HealtH and saFety 18 Safe workplases 18 Preventing sickness absence 20 Safety culture at Stabburet 20 Safety in sales work at Nidar 21 environment 22 Responsibility for the environment 22 Energy recovery at Procordia 25 Conscious use of packaging 26 Packaging development at Lilleborg 27 Food saFety 28 Consumer confidence through safe products 28 Food safety in purchasing 31 Orkla’s approach to modern gene technology 31 nutrition and HealtH 32 Food enjoyment in a balanced diet 32 Responsible marketing 38 Dutch bread with less salt 39 responsible purcHasing 40 Collaboration based on ethical, sustainable principles 40 Workers’ rights 41 Cocoa production in West Africa 43 Textile manufacturing in Asia 44 Fish oil production in Peru 45 Sustainable purchasing 46 Palm oil 47 Sustainable fishing 47 about tHe report 48 sponsorsHips 49 Associated Non-core Business areas company Orkla Sapa Confectionery Orkla Home Orkla Orkla Food Jotun (part of future JV) Aluminium profiles Orkla Foods & Snacks & Personal International Ingredients (42,5 %) and building systems EBITA1 (NOK million): Stabburet Chips Group Lilleborg MTR Foods Idun-group Procordia Göteborgs/Sætre Lilleborg Orkla Brands KåKå-group 233 Profesjonell Russia Abba Seafood Nidar Odense Marcipan Pierre Robert Felix Austria Sapa Heat Transfer Beauvais foods Panda Group Credin bageripartner Rolled aluminium Orkla Foods Kalev Axellus-group products Fenno-Baltic Credin-group EBITA1 (NOK million): Dragsbæk- group 309 Orkla Foods Romania Hydro Power Sonneveld Group EBITA1 (NOK million): Operating revenues Operating revenues Operating revenues Operating revenues Operating revenues Operating revenues* 208 (NOK million): (NOK million): (NOK million): (NOK million): (NOK million): (NOK million): 7.972 4.794 4.025 2.133 5.435 11.351 Shares and financial assets EBITA1 EBITA1 EBITA1 EBITA1 EBITA1 EBITA* Value (NOK billion): (NOK million): (NOK million): (NOK million): (NOK million): (NOK million): (NOK million): 3,6 1.114 780 702 -5 228 1.126 Orkla Eiendom (real estate) Number of Number of Number of Number of Number of Number of Book value man-years man-years man-years man-years man-years man-years (NOK billion): 3.061 2.231 1.787 4.432 2.224 6.379 1,8 Corporate Centre and support functions * Figures on a 100% basis. 1 Operating profit before amortisation and other income and expenses. Design and production: Cox Design, Oslo | Photo cover: Mari Svenningsen | Print: TS trykk AS. the leading OperatiNg REvENuES Group operating revenues nordic branded totalled nOK 30.0 billion. conSumer 30.0 goodS company EARNiNgS PER ShARE Orkla ASA is an international group listed on the Oslo Earnings per share Stock Exchange and headquartered in Oslo, Norway. were nOK 1.6 in 2012. The Group is the leading Nordic supplier of branded consumer goods and concept solutions to the grocery and out-of-home sectors. Orkla also holds several strong positions in India, Russia and Austria. Moreover, Orkla Food 1.6 Ingredients is a major supplier to the European bakery market. In addition to its branded consumer goods business, Orkla 1 still operates in the real estate, hydropower and aluminium EBiTA sectors and has financial investments. Group EBiTA1 totalled nOK 3.3 billion. As of 31 December 2012, Orkla had around 28,000 employees, of whom some 14,000 were employed in its branded consumer goods business. In 2012, the Group 3.3 had a total turnover of around NOK 30 billion. 1 Operating profit before amortisation and other income and expenses. SALES REVENUES BY CAPITAL EMPLOYED PER SALES REVENUES PER GEOGRAPHICAL AREA GEORGAPHIC AREA BUSINESS AREA Norway 9,239 (32 %) Norway 9,944 (41 %) Orkla Foods 7,839 (27 %) Nordic region excl. Norway 10,096 (35 %) Nordic region excl. Norway 10,293 (42 %) Orkla Confectionery & Snacks 4,760 (17 %) Central and Eastern Europe 3,679 (13 %) Central and Eastern Europe 2,166 (9 %) Orkla Home & Personal 3,986 (14 %) Rest of Europe 2,282 (8 %) Rest of Europe 547 (2 %) Orkla International 2,077 (7 %) Asia 2,694 (9 %) Asia 1,477 (6 %) Orkla Food Ingredients 5,378 (19 %) America/Rest of the world 569 (2 %) America/Rest of the world 28 (0.1 %) Other Business 4,519 (16 %) Total sales revenues NOK 28,559 million Total capital employed (capitalised) Total sales revenues NOK 28,559 million. NOK 41,944 million 3 Responsible sourcing pro­ cedures were introduced in 10,000 companies that account for 80% of Orkla’s purchasing1 tonnES of palm oil used in food products have 10% been replaced by rapeseed and sunflower reduction in seed oil as a result of product development in the period 2008–2012 consumption of packaging1 35% 740 managers and key personnel underwent of the management staff in orkla’s branded training in corporate responsibility and consumer goods business were women business ethics Close to 50% of Orkla’s sales of beverages derive from sugar-free products 8% reduction in greenhouse No serious incidents gas emissions from 2011 to 2012 related to food safety the Lost Work Day Rate (LWDR)2 More than 26% 90% of waste was reduced of orkla’s food sales derive is recycled or from 4.6 in from products that offer used for other health benefits or have a purposes1 2011 to 3.6 reduced content of sugar, in 2012 saturated fat or salt 1Applies to orkla's branded consumer goods business from 2011 to 2012 2number of injuries leading to absence per million hours worked 4 oRkLA SuStAinAbiLity REpoRt 2012 foREWoRD Building the future together Orkla is On its way tO becOming a fOcused branded cOnsumer gOOds cOmpany. thrOugh prOfitable grOwth and sustainable prOducts we will create a better future fOr Our cOnsumers, custOmers, emplOyees, sharehOlders and cOmmunities. Orkla’s transformation from a complex approach to the use of new ingredients; population growth, climate change industrial group into the strongest branded for instance, we do not use raw materials and water shortages in large parts of the goods company in the nordic region has or ingredients that have been produced world put growing pressure on the brought our sustainability agenda to the using gene technology. we accept the production of agricultural raw materials. fore. consumers must be able to trust our extra cost that this entails in order to although Orkla does the bulk of its pur- brands and the way in which they are be able to offer consumers the safety chasing in the nordic region, we are also produced. as a leading food and beverages they desire. dependent on raw materials that present producer, we have a farm-to-fork responsi- certain challenges. abba seafood’s bility. we therefore focus attention on every day, Orkla’s food products can be commitment to sustainable fishing working conditions and the working found on the breakfast and dinner tables and nidar’s use of certified cocoa are environ ment in the supply chain, the of thousands of consumers. that is why examples of efforts that play an im- environment, health and safety perfor- we are committed to promoting the portant role in ensuring a stable food mance of our own operations, sensible enjoyment of food and good dietary supply in the future. use of raw materials and ways in which habits. Orkla companies are engaged we can help consumers adopt a healthier in systematic efforts to develop products Orkla has been a member of the global lifestyle. that make it easier to maintain a balanced compact since 2005. i am proud of what diet, and 26% of our food sales derive we have achieved since we signed this food safety is fundamental to responsible from products that offer health benefits important initiative, and enthusiastic food production. safe food necessitates or have a reduced content of sugar, satu- about the future. we at Orkla believe that vigilance and effective quality procedures rated fat or salt. in the last four years the road to a sustainable future lies in the all along the value chain. Orkla has estab- alone, our companies have cut their willingness of trade and industry, public lished safe food production processes annual consumption of palm oil by authorities and society at large to think based on an internationally recognised around 10,000 tonnes, replacing it with creatively, the constructive interaction standard at all our factories. every year, healthier vegetable oils. in the years of these parties and, above all, hard work. we invest substantial resources in in- to come, we will further intensify our creating a sustainable society is a shared house training programmes, food safety efforts in the field of nutrition. responsibility, and we must all begin with audits, quality control and improvement ourselves. measures. we take a precautionary Åge Korsvold President and Ceo 5 photo: Guri Dahl/tinagent.no 6 oRkLA SuStAinAbiLity REpoRt 2012 oRkLA'S coRpoRAtE RESponSibiLity food, PeoPle and the environment as One Of the nOrdic regiOn's largest fOOd prOducers, Our respOnsibility extends frOm farm tO fOrk. hoto: Mari Svenningsen p 7 Orkla and our companies are dependent on consumers, investors, authorities and the Orkla aNd the commuNity general public trusting that we have sound Many of the orkla companies have a strong position in their markets procedures for food safety and for handling the sustainability challenges in the value and local communities. the companies contribute to strengthening the chain. Our products must have a taste and local communities by partnering with local authorities, schools and quality that never disappoint, and be pro- organisations in the spheres of sport, culture and humanitarian work.