Palsgaard ESG report appendix 2023

RESPONSIBILITY

Palgaard ESG report 2023 – Appendix

Our ESG report for 2023 is done in preparation for Palsgaard to be able to report according to the EU’s Corporate Sustainability Reporting Directive (CSRD) and not according to GRI 2021 standards as in previous years.

However, as Palsgaard has participated in the UN Global Compact since 2011, we will continue to communicate on our progress according to GRI Standards 2021, in addition to the information available in our ESG report.

See more below.

PALSGAARD GRI CONTENT INDEX 2023

Labour

GRI: 2-8 ,403-1, 401-3, 404-1, 404-2, 404-3

All Palsgaard production sites have a health and safety system in place. The system is used as a voluntary approach focusing on compliance with relevant law and regulation. All employees are covered by this together with relevant external contractors.

All employees at Palsgaard have the right to parental leave.

Denmark's average hours of training per employee is 1,35 % in 2023. The annual employee performance reviews involve discussing expectations and identifying developmental initiatives. Palsgaard has training and onboarding programs in place. Palsgaard doesn´t have a system to control whether employees receive regular performance and career development reviews.

Human Rights

GRI: 410-1, 411-1

Training of security personnel in human rights policies or procedures was not reported in 2023.

No incidents of violations involving the rights of indigenous peoples were registered in 2023.

Environment

GRI: 305-6, 305-7

Emissions of ozone-depleting substances, nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions are not a part of our environmental reporting practices.

Anti-Corruption

GRI: 415-1, 417-1, 417-2, 417-3, 418-1

Palsgaard has not made any political contributions locally, regionally or globally in 2023.

100% of our products conform to EU legislation on labelling and we respond to customer requests for additional labelling. In 2023, there haven't been any registered incidents of non-compliance concerning product and service information and labelling. And there haven't been any incidents of non-compliance concerning marketing communications.

There haven't been any substantiated complaints concerning breaches of customer privacy and losses of customer data in 2023.

Sustainable Development Goals

GRI: 3-2

Our material topics are selected based on the output from the materiality assessment that has structured our ESG report, and the findings support our ESG focus areas corresponding to impact and significance to Palsgaard’s business where we can make an authentic and worthwhile difference.

The SDGs help to guide companies in advancing broader societal goals, emphasizing, collaboration and innovation. The goals are inter-connected and address poverty, the environment and human rights.
Our goals, actions and achievements reflect how we support the UN Sustainable Development Goals and selected targets.

The material topics are reported in the ESG report.

Finance and tax

GRI: 201-4, 204-1, 207-4

Palsgaard has a 10-year tax-free scheme in Malaysia until 2027. Application for extension is in government coprocessing. The Danish government has supported export initiatives with DKK 18.500 over 3 years

No defined spending. Local palm oil growers are supported via RSPO when they are members of RSPO. Our Malaysia plant uses locally produced palm oil, and we hire local workers for all subsidiaries.

Palsgaard does not report Country-by-country tax for confidentiality reasons.

Palsgaard does not have a reporting practice on reclaimed products and their packaging materials.

Governance

GRI: 413-1, 413-2, 2-15, 2-17, 2-21

PlanBørnefonden

Palsgaard has partnered with the Denmark-based PlanBørnefonden (Children & Youth Foundation which is also part of the organisation Plan International) for more than 10 years. The foundation provides children and youths with opportunities to improve their future prospects through activities in several countries and continents. The work directly addresses many of the UN SDGs, improving health and education, stimulating local economies and focusing on entrepreneurship and job creation.

Palsgaard has a 5-year contract of sponsorship with PlanBørnefonden with a yearly contribution. The sponsorship includes support to sustainable development projects – especially the development and education of children and young people have our attention. The support helps secure further development of the local communities and a better future for all.

The partnership also benefits from an ongoing program at Palsgaard to reduce food waste. Employees can purchase surplus food from the daily lunch buffet, with all proceeds going to PlanBørnefonden.

Governance

GRI: 413-1, 413-2, 2-15, 2-17, 2-21

Contributing to the global community

In addition to sponsoring PlanBørnefonden and collaborating with educational institutions and offering scholarships to students, Palsgaard has supported a number of other activities in 2023.

In Borneo, we have:

Made donations to support Save the Orangutan, which works to rescue this endangered species and its rainforest home

In Brazil, we have:

Made donations to support the improvement of children’s quality of life through sports projects in the community.
Made donations to support the improvement of teenagers’ quality of life through cultural music projects in the community.
Made donations to support the improvement of children’s quality of life in cultural projects at the Pequeno Principe Hospital

In Denmark, we have:

Made donations to support the Danish Cancer Society
Made donations to the association Families with cancer-stricken
children
Made donations to local community initiatives for culture, sport, history and music
Worked with the local authorities to help people further their education/career, and support with flexible work hours or placements

In Mexico, we have:

Made donations to the athletic race “Todos Somos Diferentes” (“We Are All Different”) held in support of the activities and programs that the Integrame Down Association carries out for the benefit of children with Down syndrome.

Governance

GRI: 413-1, 413-2, 2-15, 2-17, 2-21

Connecting with tomorrow's experts

Palsgaard collaborates with educational institutions and knowledge centres throughout the world, participating in formal and informal knowledge exchanges. We host study trips, company visits and similar events to stimulate interest in natural sciences and food chemistry, physics and food technologies. Palsgaard’s Research and Development company, Nexus, hosts work placements for international food engineering students, and our laboratories collaborate with them on independent development projects.

Palsgaard has a partnership with the University of Aarhus to develop new and better emulsifiers, just as Claus Hviid Christensen, the CEO of Nexus, teaches classes on food quality and is also a supervisor for master thesis students.

Palsgaard has a scholarship program to support students in food technology, science or nutrition qualifications. We assist applicants coming from low-income families, helping to pay for tuition fees, books, living expenses, and other study-related expenses.

In 2023, our scholarship program supported students in:

Indonesia
South Africa
The Philippines
Vietnam
Thailand
Mexico

Governance

GRI: 413-1, 413-2, 2-15, 2-17, 2-21

Other activities

Palsgaard has not identified any operations with significant actual and potential negative impacts on local communities in 2023.

Palsgaard has no current formal process to identify or mitigate conflicts of interest. The Group CEO is a board member at a customer of Palsgaard A/S.

Palsgaard has no formal process to advance collective knowledge on sustainable development for board members but this is in focus in our new strategy. Palsgaard has no current reporting practice on the evaluation of performance for the Board of Directors.

No current reporting practice on the annual total compensation ratio.