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    CSR report 2012

    Dear Reader

    Palsgaard has set an overall target of becoming CO2-neutral by 2020. This is an extremely ambitious target for a company with very energy-intensive production processes. It is therefore gratifying to note that Palsgaard in 2012 managed to keep its CO2 emissionper kilo of finished product at 2011 levels.

    As one of the larger measures to tackle CO2 emissions,a solar cell system was installed at Palsgaard's factory in Mexico in 2012. This ensures that min. 85% of Palsgaard Mexico's electricity consumption is CO2 neutral.

    In 2012, in the area of palm oil, we became certified to RSPO SCCS (Roundtable of Sustainable Palm Oil Supply Chain Certification Standard). This means that we have now, as is the case with parts of the rest of the supply chain, been certified to handle certified palmoil-based products. In this way, we support stability in biodiversity and responsible production in the manufactureof palm oil. During this process, we have also tightened up our management of responsibility in the supply chain in general.

    In 2011, we signed up to the ten principles contained in the UN's Global Compact whose purpose is to promote ethical business conduct. We have incorporated these principles in our CSR strategy and work purposefully on permanent improvements in the ethical area which are then communicated to our customers, employees, suppliers and other stakeholders.

    In keeping with the UN Global Compact's focus on employee conditions, it is also part of Palsgaard's culture to ensure that the company has satisfied employees. In 2012/13, the board, management and specialists completed a training course to strengthen collaboration, knowledge sharing and communication. A strong, collaborative and adaptable organisation is a prerequisite for continued growth and success in a world where competitiveness is constantly challenged and where sustainable and ethical business conduct is a requirement.

    In this CSR report, we will describe the successes - as well as the challenges - we face in our CSR work and thereby do what we can to achieve transparencyin our activity reporting.

    We hope you enjoy the report.

    Thank you for your interest.