Orkla Denmark Sustainability statement 2023

Bit by bit towards a more sustainable everyday life

SUSTAINABILITY STATEMENT 2023

Om denne beretning

About this Report

Vi vil med denne beretning fortælle om Orkla Danmarks fokusområder inden for bæredygtighed. Vi beretter om vores holdninger til de enkelte fokusområder og viser med cases og eksempler, hvordan vi arbejder med dem i praksis. Vores resultater er fremhævet gennem beretningen samt i en samlet og mere detaljeret oversigt bagerst i beretningen.

We would like to use this report to highlight the focus areas of Orkla Denmark within sustainability. We report on our positions on each focus area and by means of cases and examples we demonstrate how we work with them in practice. Our results are highlighted throughout the report and in a comprehensive and more detailed overview at the end of the report.

Orkla Denmark is part of the Orkla Group, who reports on the overall performance and progress in the group’s 2023 sustainability report – to be read here: www.orkla.no/arsrapport/

Orkla Danmark indgår i Orkla koncernen, som rapporterer på den samlede performance og fremdrift i koncernens bæredygtighedsrapport 2023, som findes her https://www.Orkla.no/arsrapport/

Sustainability Must Be Part of Our DNA

Sustainability is a cornerstone at Orkla and an integral part of how we conduct business. We aim to contribute to solving global challenges related to climate, health, and sustainability.

Carsten Hänel CEO of Orkla Danmark

2023 has been a year with many significant agendas driven by both external factors and internal changes.

FOCUS ON PRICES

Following 2022, when prices for raw materials, transport, and energy soared, we have had to put extra focus on renegotiating our contracts to return to reasonable purchasing prices.

This has been fundamental for our business to secure our bottom line, and thus the profits needed to invest in the future – in our brands as well as our ambitious sustainability goals.

NEW LEGISLATION PLACES DEMANDS ON US

Much is happening in terms of legislation in the EU and in Denmark – both of which will have an impact on us in the

coming years. We welcome much of it as the incentive is to ensure that we all move in the same direction – a more sustainable direction.

In 2023, we have been particularly focused on preparing for the upcoming Producer Responsibility regulations. We need to ensure that we have the necessary data available in our systems for us to easily report our quantities. Fortunately, we are well on our way in ensuring that our packaging is recyclable.

NEW STRATEGY

In 2023, we also invested significant internal resources in the structural change of the business model of Orkla Group. Consequently, Orkla today consists of 12 independent portfolio companies within consumer-oriented businesses. This exercise prompted an update of our strategy for Orkla Denmark for the next three years – a strategy titled “Together Towards Our Full Potential.”

SUSTAINABILITY AS DNA

A key task for us in the strategy process was to identify our core competencies which will ensure we succeed with our business ambitions.

Sustainability as DNA was selected as one of our five core competencies. We have therefore prepared a three-year plan for making sustainability an integrated part of our management and decision-making processes throughout the organization.

Working with sustainability is not just about making big and important decisions when it comes to energy, operations, and production. It is crucial to have employees who not only share but are also driven by the right attitudes and the will to change. This is important to achieve both our own goals and to meet the increased demands facing us in the coming years.

About Orkla Denmark

ABOUT ORKLA

Orkla ASA is a leading company within industrial investments. The company focuses on brands and consumer-oriented businesses. Currently, the portfolio of Orkla ASA encompasses 12 companies.

Orkla ASA follows a long-term and industrial approach to managing its portfolio companies. Investments are made in companies where additional value creation can be achieved through the company’s expertise in the industry, insights into consumer behavior, and experience in developing leading brands. Orkla ASA is listed on the Oslo Stock Exchange.

ABOUT ORKLA DENMARK

At Orkla Denmark, we produce and market some of Denmark’s most well-known food and snacking brands, and we manufacture innovative quality bakery products for the convenience category.

Orkla Denmark consists of three business units: Orkla Confectionery & Snacks Denmark, Orkla

Foods Denmark, and Orkla Denmark Food Solutions.

In 90% of all kitchens in Denmark, you will find our brands e.g. Den Gamle Fabrik, KiMs, Naturli’, Beauvais, and Bähncke. Our quality bakery products from Danish Bakery and Easyfood are also widespread throughout the whole convenience sector.

As one of the leading producers in the food and snacking industry, we take responsibility and are active in the transition towards a more sustainable food system.

With facilities in Kolding, Skovlund, Skælskør, and Søndersø, as well as our headquarters in Vallensbæk, Orkla Denmark strives to be an inclusive and diverse workplace. With approximately 630 employees, we are committed to creating an environment where everyone can thrive and develop.

Photo: Orkla Denmarks headquarter in Vallensbæk

We offer a broad portfolio of well-known and local brands

Our brands play different roles for different people in different situations. However, they all have one thing in common: People choose Orkla Denmark’s brands again and again because they like them, they trust them, and they trust us. Therefore, you are likely to find several of our products and brands in most Danish homes.

A range of strong, market-leading food brands in our portfolio are offered to consumers in Denmark and on selected export markets.

Today, we are market leaders in several food categories in Denmark, including chips, jam, breakfast cereals, and dressings, offered to our customers through a range of strong brands such as KiMs, Den Gamle Fabrik, Havrefras, Bähncke, and Beauvais.

PROXIMITY TO OUR MARKET

Orkla Denmark is the result of several traditional companies and their long history in the Danish and Nordic markets.

One of our strengths is that we know the Danish consumers. We understand their preferences and needs today and tomorrow.

Our proximity to the market enables us to develop exactly the food and quality products which provide Danes with great taste experiences while also developing tomorrow’s trends. In this process, we are in close dialogue and collaboration with consumers, customers, and other important target groups.

At Orkla Denmark, we work to strengthen responsible and sustainable leadership

2023 HAS BEEN A YEAR OF CHANGE

The past year has been marked by the establishment of the new corporate structure at Orkla, where we transitioned from being one unified group to 12 independent portfolio companies. Such a change requires new management structures, and this consequently also affects the area of sustainability. Additionally, new legislation will impose greater demands on risk management, anchoring, and documentation of sustainability efforts.

STRENGTHENING ESG GOVERNANCE

Therefore, we have initiated the establishment of a stronger ESG governance structure within the Orkla portfolio companies in 2023. This work is based on the implementation of double materiality assessment.

This work will continue into 2024 and will form the basis for updating the ESG goals towards 2030, both at the portfolio company level and for us locally at Orkla Denmark.

We look forward to sharing more about this in the 2024 report.

PRACTICING BALANCED LEADERSHIP

In 2023, we introduced the triple bottom line as a management tool to ensure that we make balanced decisions, focusing on the environment, people, and society, as well as our profit. As a commercial company, we have a strong history of setting goals and continuously following up on our financial KPIs. We aim to transfer this competence to our sustainability goals. We have been working on this in 2023, and like all new initiatives, it takes time to be fully integrated.

Throughout 2023, it has become clear that better data, systems, and management processes are required to

properly anchor the triple bottom line across the entire value chain. It also requires updated knowledge and competence across the organization. Therefore, in 2023, we conducted a competency boost with the rollout of our internal sustainability course for large parts of our staff.

MANY SMALL STREAMS MAKE A MIGHTY RIVER

Our mantra – that sustainability should be part of our DNA – is starting to make an impact in 2023. The year has not been characterized by many large strategic initiatives driven centrally. Despite this, many fine smaller initiatives have been implemented locally in various functions. They are driven by the ambition to move Orkla Denmark bit by bit towards a more sustainable everyday life.

Based on the saying “many small streams make a mighty river” you can read more about some of the year’s initiatives in this report. On the next page, you can also see selected highlights from the year, and at the end of the report, there is an overview of the development of our most important ESG KPIs.

SUSTAINABILITY IS A JOURNEY

There is no final destination when it comes to sustainability. We will never finish, as there will always be areas for improvement and even higher ambitions as our environment and technologies change. Things that may be impossible today may be achievable tomorrow.

Therefore, we are open, curious, and participate in various development projects and partnerships that can help solve future challenges within sustainability.

... Bit by bit towards a more sustainable everyday life

Selected highlights 2023

LAUNCH OF 5 NEW PLANT-BASED PRODUCTS

CERTIFICATION OF RAW MATERIALS

IN CO2 SCOPE 1 AND 2 vs. 2016

High-risk raw materials constitute only 8% of the total raw materials volume

High-risk raw materials

Strategically prioritized raw materials

No-risk raw materials

IN

22% high-risk raw materials are certified

Certified raw materials

Non-certified

72% OF ALL SALARIED EMPLOYEES HAVE COMPLETED THE ORKLA SUSTAINABILITY ACADEMY THE RATE OF WORK ACCIDENTS (TRR) IS REDUCED BY 38% IN THE PERIOD 2022-2023

7,4 IS THE AVERAGE EMPLOYEE SATISFACTION On a scale from 1 to 10 99% OF SALES PACKAGING ARE DESIGNED FOR RECYCLING

Fossil fuel

2025 targets of Orkla ASA defines the framework for the sustainability work in Orkla Denmark

Orkla ASA has set clear sustainability goals towards 2025, based on adherence to the UN Global Compact’s 10 principles for responsible business operations and the 17 Sustainable Development Goals. Across companies and countries, we at Orkla are working to develop sustainable products and solutions that contribute to our sustainability goals. Highlighted below are the five main areas including 2025 targets, all of which are crucial to the efforts of Orkla and Orkla Denmark when it comes to both society and our long-term value creation. Targets and focus areas are under review and will be updated during 2024.

ENVIRONMENTAL ENGAGEMENT

A Strong Commitment to the Environment

• >60% renewable energy

• 65% reduction in greenhouse gas emissions from own operations

• 30% reduction in energy and water consumption

• 50% reduction in food waste

SUSTAINABLE SOURCING

Collaboration for Sustainable Raw Materials

• Ensure respect for workers’ rights

• 100% certification of high-risk raw materials

• Promote sustainable agriculture and fisheries through certification of prioritized raw materials

• 100% recyclable packaging

NUTRITION AND WELLNESS

Making It Easier to Live Healthily

• Double the consumption of products and services that contribute to a healthier lifestyle

• 15% less salt and sugar

• Inspire a healthier lifestyle

SAFE PRODUCTS

Good Quality and Food Safety

• 100% of food factories at green level

• 100% approved suppliers via signed Orkla SCoC

• Continue to ensure that all products are safe to use

CARE FOR PEOPLE AND SOCIETY

• Create a strong local engagement for sustainability

• 100% compliance with Orkla’s human rights policy

• Create healthy workplaces with zero work accidents

• Women in 50% of leadership positions at all levels

Orkla Denmark’s activities relate particularly to the UN Sustainable Development Goal 12: Responsible consumption and production

Orkla is the largest branded consumer goods company in the Nordics and therefore has a responsibility to lead the way in our industry and ensure sustainable development.

As part of the Orkla Group, Orkla Denmark actively contributes to several of the UN Sustainable Development Goals. Our primary focus area is Goal 12: Responsible Consumption and Production. We strive for sustainable food production and the promotion of responsible consumption.

We continuously work to reduce the climate footprint of our products. This includes developing more sustainable packaging, continuously reducing greenhouse gas emissions, developing and promoting greener and more sustainable food products, and minimizing food waste.

In short, we aim to make it easier for consumers to choose sustainable solutions in their daily lives.

Highlighted

Examples of how Orkla Denmark Works to Contribute to the Achievement of Several of the Sustainable Development Goals:

• Ensure responsible production of raw materials and promote sustainable agriculture and fisher

• Better utilization of crops through a plant-based diet

• Reduce food waste

• Work systematically to ensure good working conditions for our employees

• Demand responsible working conditions and human rights from our suppliers

• Avoid plastic pollution by developing and promoting recyclable packaging solutions

• Develop nutritious and healthy products

• Reduce salt and sugar in existing products

• Inspire consumers to lead a healthy lifestyle

• Promote diversity and gender balance at all levels across the business

• Contribute to advancing the plant-based food production industry and the innovation of new plantbased products

• Contribute to ensuring responsible agricultural practices

• Avoid using raw materials that contribute to deforestation

• Work systematically to reduce CO2 emissions throughout the entire value chain

• Active dialogue with stakeholders and partnerships to promote sustainable production and consumption

• Promote innovation through various partnerships and forms of collaboration, especially within the plantbased sector

Sustainability training throughout the organization

Competence development is one of the cornerstones for making sustainability a part of the DNA of the entire organization. Sustainability must be embedded in the mindset of the whole organization. This can only be achieved by increasing our knowledge in this area.

INCREASED KNOWLEDGE AND COMPETENCES

It is important that responsibility and sustainability are integrated into both long-term plans and local decision-making processes across all functional areas. Therefore, sustainability cannot be driven by a single function alongside the rest of the organization but must be embraced and driven locally in all functions throughout the Orkla Denmark organization.

To support this, we at Orkla have developed an internal sustainability course called The Orkla Sustainability Academy. The course is based on e-learning and aims to enhance all employees’ knowledge and understanding of the sustainability agenda at Orkla. The course is structured around the five main themes of the strategy. For each area, the big picture is presented, explaining why this area is important for Orkla from an external perspective.

Then, we delve into our stance on the area and how we work with each topic in terms of policies, goals, and various initiatives.

LEADERSHIP LED THE WAY

We started by having the executive management team and their direct reports go through the course at the end of 2022 and into Q1 2023. It was then rolled out to all salaried employees. Today, it is mandatory for new salaried employees to complete the course, and by 2023, 72% of the target group had completed the training.

We can already clearly see that this has resulted in an increase in competence and a broader focus within the organization. We believe that through knowledge, we create action and make good decisions.

72% OF ALL SALARIED EMPLOYEES HAVE COMPLETED THE SUSTAINABILITY TRAINING

New internal KPI: ‘Most Sustainable Products’ for monitoring sustainability in the portfolio

‘Most Sustainable Products’ is a tool designed to help us steer our portfolio in a more sustainable direction. We have identified four key parameters by which we assess the sustainability of each product: health, raw materials, packaging, and climate footprint. The tool provides a clear overview of the most critical aspects in the portfolio, allowing us to prioritize our efforts based on data.

If a product has achieved the highest classification in three out of four parameters, it is considered ‘Most Sustainable’. Examples of ‘Most Sustainable Products’ can be seen above.

HEALTH

The first parameter focuses on the nutritional profile of the product.

Class 1 – Indulgence products, such as chips, snacks, jam, and sweet baked goods.

Class 2 – Products which are part of a regular varied diet, such as ready meals, sausage rolls, focaccia, ketchup, and dressings.

Class 3 – Products with an improved profile, such as reduced sugar, salt, or fat compared to similar products, like light cordial and sugar-free ketchup.

Class 4 – Nutritionally healthy products that are particularly good for us, such as Keyholelabeled or whole grain products, or products with a high vegetable content, like Havrefras and Keyhole-labeled ketchup.

RAW MATERIALS

Next, we look at the raw materials in the product and whether any of them have an increased risk of being grown with a negative impact on the environment, nature, society, and/or people. We operate with three levels.

Class 1 – Products containing non-certified high-risk raw materials.

Class 2 – Products without highrisk raw materials or where highrisk raw materials are certified.

Class 3 – Products where 80% of the raw materials are certified, including high-risk raw materials.

PACKAGING

The third parameter is the packaging of the product, where we assess recyclability. This also has three levels.

Class 1 – Non-recyclable packaging.

Class 2 – Theoretically recyclable packaging, but where recycling does not occur in practice in Denmark.

Class 3 – Recyclable packaging.

CLIMATE FOOTPRINT

The final parameter is the climate footprint of the product. We have calculated that an average diet emits 4.2 kg CO2e/kg of food. We have defined the criteria based on the assumption that a low climate footprint corresponds to half of this, as we need to make reductions of 50% to contribute to the goal of 1.5 degree according to the Paris Agreement.

Class 1 – Products with a high climate footprint > 4.2 kg CO2e/kg.

23% OF THE TURNOVER CAME FROM ‘MOST SUSTAINABLE’ PRODUCTS

Class 2 – Products with a medium climate footprint > 2.1 and < 4.2 kg CO2e/kg

Class 3 – Products with a low climate footprint < 2.1 kg CO2e/kg.

I/A = The entire Easyfood portfolio lacks classification. This will take place in 2024.

Plant-based foods

A new generation of plant-based meat substitutes is appearing

It is widely recognized that there are many good reasons and benefits from eating a more plant-based diet. By eating more plant-rich foods, we can both help slow down climate change and improve public health. In fact, a more plant-based diet can contribute to 9 out of the UN’s 17 Sustainable Development Goals.

FROM NICHE TO MAINSTREAM

Plant-based foods have moved from being a niche area to being mainstream. At Orkla Denmark, we closely monitor trends in plant-based foods and continuously develop products that match the most important trends.

In 2023, we developed our first product in collaboration with FERM FOOD within what we call ‘Plant-Based Foods Generation 2.0.’ You can read more about this on the following pages. Additionally, in collaboration with the company Peas of Heaven, we have developed a new product based on pea protein, which will be launched in 2024.

Our work with plant-based foods relates to 9 out of 17 of the UN’s Sustainable Development Goals.

PARTNERSHIPS AND NEW FORMS OF COLLABORATION

– A NEW NORMAL

Even though we stay updated on food trends and have strong competencies in product development, we at Orkla Denmark are convinced that the future of the plant-based food category will be created in collaboration with other actors. These collaborations take many different forms but can, for example, be partnerships with smaller ingredient companies with good ideas but limited resources to execute on a larger scale. It can also be in ‘circular communities,’ where we collaborate with other companies and actors to utilize and upcycle by-products from one company’s production and use them in another company’s finished products.

SEEKING INSPIRATION ACROSS THE COUNTRY

We keep our options open and are constantly looking for new inspiration and new collaboration partners. Therefore, we are also present at relevant events throughout the year, such as Madens Folkemøde, where we both gather inspiration and share our own experiences with the aim of learning together and setting things in motion. We look forward to participating again on May 31 – June 1, 2024.

Plant-based foods generation 1.0 and 2.0

GENERATION 1.0: ‘LOOK LIKE MEAT’

The first generation of plant-based foods focuses on meat substitute products designed to replace meat products one-to-one.

This type of plant-based meat substitute is developed to resemble and taste like meat as much as possible.

The color and flavor of these products are often crafted to mimic meat so that consumers can replace their meat with plant-based products and prepare their meals exactly as they would with meat.

These products are popular with consumers who want to eat less meat but still want an experience as close to meat as possible. Developing these products often involves more extensive processing of raw materials compared to other types of products.

GENERATION 2.0: ‘USE LIKE MEAT’

The next generation of plant-based foods focuses particularly on vegetables, less processing, and shorter ingredient lists. These products have a high vegetable content, focusing on good nutrition and minimal use of additives.

The idea behind this new generation of plant-based foods is to develop products that do not necessarily look or taste like meat. Instead, the flavor and appearance come from the vegetables the product is based on.

An example of such a product is our patty, developed in collaboration with FERM FOOD (see image on the next page). Here, the vegetables in the product are clearly visible, but it can still be used as a meat substitute in preparation, such as the patty in a burger.

Generation 2.0 products cater to consumers who want a greener lifestyle with satisfying and healthy dishes. Product develop-

er Mette-Marie Palle Jørgensen in our test kitchen in Vallensbæk

The future of plant-based meat substitutes based on fermented rye

At Orkla Denmark, we aim to contribute to the development of future plant-based meat substitutes and launch tasty plant-based products that encourage consumers to choose plant-based options more often over animal-based ones.

PARTNERSHIPS ARE THE WAY FORWARD

Developing delicious plant-based products is complex and time-consuming. There are many smaller players who are highly skilled and far ahead on the innovation agenda. Therefore, we continuously enter partnerships with companies that develop new ingredients and products.

In 2023, we entered a close development collaboration with the Danish ingredient company FERM FOOD.

PLANT-BASED ALTERNATIVES FOR THE 20 MOST POPULAR DISHES

When Development Manager Søren Lange from FERM FOOD and Product Developer Torbjørn Tyndkjær-Thomsen from Orkla Denmark sat down together in the spring of 2023, the goal was clear:

“We need to develop tasty and healthy plant-based products for use in the 20 most common European dinner dishes”.

FERMENTED RYE AS A BASE

FERM FOOD’s innovative solution with fermented rye has made it possible to develop a completely new version of plant-based meat substitutes with good structure and flavor. Our development focused on “use like meat” rather than “look like meat,” which is how most plant-based meat substitutes are categorized today. This has provided better conditions for developing a tasty product.

FERM FOOD’s fermented rye has received positive feedback in consumer tests.

FIRST PRODUCT FULLY DEVELOPED IN 2023

After six months of development and testing at our factory in Skovlund, the new plant-based product, based on fermented rye, passed the large-scale test in 2023. The first product is ready for large-scale production and launch in 2024.

66%

66% OF DANES AGED 18-74 WANT TO EAT LESS MEAT**

*Coop Analyse & DVF 2023

“Ingredients fermented with lactic acid have the potential to revolutionize the way we compose food because we can use more local ingredients that taste better and, due to the fermentation process, become multifunctional. This shortens the ingredient list and retains the natural health benefits of the raw materials.”

Torbjørn Tyndkjær-Thomsen, Product Developer

PROPERTIES OF FERMENTED GRAINS

Rye contributes nutritional value and texture, and it is also excellent at binding the other ingredients together.

Its binding ability works during freezing, after thawing, during heating, and without the addition of fat. It does not burn and maintains its shape during boiling, frying, and freezing.

Fermented grains have a wide range of properties that can benefit nearly all food categories. These products can be used as ingredients in baked goods, meat products, and the plantbased category, contributing features such as those indicated in the image to the right.

GREAT POTENTIAL FOR FERMENTED PRODUCTS

Like our partners at FERM FOOD, we at Orkla Denmark believe that this new type of food with fermented ingredients has the potential to become significant in plant-based meat substitutes.

Therefore, we are working to develop the next generation of plant-based meat substitutes with fermented ingredients. We aim to make plants the heroes of our daily eating habits.

OF DANES AGED 18-74 HAS AT LEAST ONE MEAT-FREE DAY PER WEEK*

*Coop Analyse & DVF 2023

Eat as you normally do – in a new way

As a large food producer, it is not only our responsibility to help develop plant-based foods. We are also aware that consumers’ habits do not change overnight, and we therefore aim to inspire people to eat more plant-based products.

Many consumers want to eat more plantbased foods, but the proportion of Danes who have at least one meat-free day a week is much smaller than those who say they want to eat less meat. We know from previous studies* that consumers find it difficult to prepare meat-free meals. Even though there is a willingness to eat more

plant-based, there are still some barriers to making it happen in practice.

WE WANT TO INSPIRE PEOPLE TO EAT MORE PLANT-BASED

In collaboration with TV chef Gorm Wisweh, Naturli’ launched a campaign on social media in the fall of 2023. The campaign aimed to show consumers how to easily make delicious plant-based food without having to learn to cook entirely new types of dishes.

Using the products “Hakket” (minced), “Pipfri” (chicken-free), and “Supreme Burgers”, three well-known influencers got a visit from the TV chef, who prepared easy, delicious, and recognizable dishes together with them based on the motto: “Eat as you normally do – in a new way.”

With TV chef Gorm Wisweh on the sidelines, three well-known influencers prepare simple, delicious, and inspiring plantbased dishes.

The campaign aimed to inspire Danes and make the transition to a more plant-based diet easier without fundamentally changing their eating habits.

SUCCESSFUL CAMPAIGN

The campaign, which ran in two segments on social media, had a reach of 250,000. This was slightly below our expectations, but there was a high level of interaction from the followers of the influencers. The engagement rate of the campaign averaged above the expected level of 2%, indicating that these target groups are interested in the product.

Inspiring plant-based recipes and videos can be found at www.naturli-foods.dk.

The plant-based food sector is constantly evolving and at Orkla Denmark, we are continuously working to develop new, tasty products. In 2023, we launched five new products under the Naturli’ brand:

The Naturli’ way

The old way

KEBAB STYLE STRIPS

Kebab Style Strips are based on peas and contain a full 14g of protein per 100g. Simply fry them briefly in a pan and they are ready for your pita, wrap, or salad. Easy and perfect for meatfree days.

ØKOLOGISK FALAFEL

Organic Falafel is based on chickpeas with a flavorful and authentic seasoning – and they are gluten-free! Try them in pita bread or as a side to a delicious salad.

KEBAB’ISH

The plant-based pizza, besides being 100% vegan, is topped with vegan kebab, garlic dressing, red onion, and pepperoncini.

THOUSAND ISLAND DRESSING

With this dressing, you have the finishing touch and can easily elevate any salad. Of course, it is 100% plant-based!

AIOLI

This aioli takes your sandwich to the next level, making it nearly impossible not to double-dip your fries. 100% plant-based and indispensable in the refrigerator.

at www.orklafoodappeal.dk.

Find the recipe for “Falafel Masala with Cauliflower Rice”

Inspiration for Recipes and New Plant-Based Products such as “No-Meatballs in Spaghetti Nest”

Orkla Foodservice inspires professional kitchens to put more plants on the menu

In professional kitchens around the world, there is a strong desire to do something positive for the climate and our health. Cafeterias, cafes, restaurants, and other establishments are eager to include more greens and plant-based dishes on their menus. Their guests demand it. At Orkla, we inspire with plant-rich dishes and menus full of flavor and substance.

INSPIRATION AND RECIPES FOR PROFESSIONAL KITCHENS

Orkla Foodservice is designed to help professional kitchen chefs. Our specialists work to inspire and make it easier for

chefs to include plant-based dishes on their menus. Chefs can find inspiration on our website and on the Instagram profile Orkla Foodappeal where we offer plenty of suggestions and recipes for delicious plant-based dishes and servings using both our new and classic dressings, flavor boosters, pickled vegetables, and, of course, our plant-based products from Naturli’. Get tempted yourself. Visit and get inspired via the QR codes here.

Online recipe universe at orklafoodappeal.dk

Collection of plant-based recipes published by Orkla Foodappeal

Orkla Foodappeal inspires where the target audience is e.g. on social media

Professional tips from Orkla Foodappeal like “Use the Peel”

Orkla Denmark foodservice also travels the country to motivate and inspire to more plant-based eating

CLIMATE ON THE SCHOOL CURRICULUM

Orkla Foodservice was present with inspiration and samples of our Naturli’ plant-based meat substitutes at Øregård Gymnasium when climate currency was on the school curriculum.

The gymnasium had allocated a day to climate-responsible behavior and the important role of young people in the green transition of our food system. Prices in the cafeteria were adjusted based on the food’s climate footprint, giving the students food for thought.

THE FUTURE OF FOOD IN THE PUBLIC SECTOR

Orkla Foodservice has a close collaboration with procurement central SKI to expand the public offering of plant-based products.

At Rigshospitalet’s theme days for the future of food 2050, we were present among guests from both the political and culinary scenes. The scientists predict future foods based on plants and alternative protein sources, such as insects. We inspired with samples of Naturli’ burgers in burger buns baked with insect flour, served with seaweed salad.

INSPIRATION AT FAIRS AROUND THE COUNTRY

Orkla Denmark Foodservice tours the country and can be found at fairs and inspiration events throughout the year.

MORE PLANTS ON THE MENU

Here, we inspire chefs, wholesalers, food enthusiasts, and end-users with samples, recipes, and tips on how to easily get more plants on the menu – and how to balance plant-based products into tasty servings.

Healthier everyday choices Conscious choices create a healthier everyday life

Health and well-being are one of the 17 Sustainable Development Goals included in the UN’s development agenda for sustainable development towards 2030. The latest statistics show that health is declining in Denmark, primarily due to unhealthy lifestyles. At Orkla Denmark, we want to contribute to better eating habits by reducing sugar, salt, and fat in everyday favorites, launching new, healthier alternatives, and inspiring and making it easy for consumers to choose healthier options.

We actively participate in the Danish Veterinary and Food Administration’s food partnerships, where the entire food industry works together to promote healthier and more nutritious diets. This includes increased focus on the nutrition labels Keyhole and Whole Grain logos, as well as promoting The Official Dietary Guidelines, which also consider the climate.

MAKING CLASSICS HEALTHIER

We continuously update and develop existing recipes to reduce sugar and salt content. We can help reduce consumers’ intake of sugar, fat, and salt through reductions in our products. Therefore, we are constantly working to reduce fat, salt, and sugar through our product development. Even small changes in the content of these elements in products consumed daily can significantly impact public health over time. However, it is crucial that we continuously adjust without compromising on quality and taste.

In 2023, we particularly focused on our snack portfolio. Over the years, we have worked to reduce both fat and salt in the KiMs chips portfolio. To advance further in this effort, we began working on finding and testing new technologies in 2023 to reduce fat in our KiMs chips. Our work on health is related to UN Sustainable Development Goal 3.

LAUNCHING NEW AND HEALTHIER ALTERNATIVES

We are constantly focused on developing and improving our range of healthier alternatives that can inspire Danes to choose a healthier lifestyle. This includes continuously increasing our offering of plant-based foods and solutions. The Danish Health Authority recommends a plant-rich and varied diet because it is beneficial for both health and the climate – and can reduce the risk of several lifestyle-related diseases.

In 2023, we also accelerated the promotion of our good and healthier breakfast products from our strong brands in the breakfast category, Havrefras and Paulúns. The new launches cater to a broad target group, from children to adults with different dietary preferences. Read more about this on the following pages.

THERE SHOULD ALSO BE ROOM FOR INDULGENCE

In Denmark, it is tradition to eat something when we meet with family and friends. When we gather outside of main meals, it can be accompanied by something to satisfy the sweet tooth or something more on the salty side, such as chips and nuts. It can also be on the go and the need to satisfy a small hunger with a sausage roll or a focaccia.

In a healthy and varied diet, there should also be room for enjoyment and self-indulgence. This is something we believe in at Orkla. However, it is important that there are options to choose high-quality products made from good raw materials, which we prioritize highly – from our chips made from Danish potatoes and our baked goods from Danish wheat without growth regulators to the specially selected strawberries that taste of sun and summer in our jam.

MAKING IT EASIER TO MAKE HEALTHY CHOICES

Havrefras products are all Keyhole-labeled. The classic Havrefras and Rugfras also have the Whole Grain logo.

The Keyhole is a governmentcontrolled nutrition label that helps consumers choose healthier options and live according to The Official Dietary Guidelines.

The Whole Grain logo aims to make it easier for consumers to choose whole grain foods, which are part of The Official Dietary Guidelines from the Danish Veterinary and Food Administration.

Paulúns to drive growth in the granola segment

In 2020, the granola segment surpassed the muesli segment, and we expect the granola segment to continue growing. We aim to influence the growth of the granola segment in a more transparent direction, and Paulúns products will play a significant role in this.

IN 2020, THE GRANOLA SEGMENT SURPASSED THE MUESLI SEGMENT

to help support the normal function of their immune system*.

This product is also an example of the ‘performance food’ trend, focusing on how food intake affects the function of the body. The granola is baked crispy and golden, with added seeds and carefully selected spices such as ginger and turmeric. Additionally, this granola contains iron, zinc, and copper, which contribute to the normal function of the immune system*.

CONSUMER TRENDS AS A GUIDE

INDIVIDUALIZED NEEDS

Today’s consumers have different desires regarding their lifestyle, leading to various dietary trends. The basic idea is: “What is good for me, is not necessarily good for you.” Therefore, we see a growing interest in products that offer specific benefits while tasting delicious. With Paulúns’ many variants, there are carefully selected ingredients to meet all consumers’ desires.

Source: Nielsen IQ ”Kend dit marked” 2013-2023

PAULÚNS TO CONTINUE DRIVING GROWTH IN THE GRANOLA SEGMENT

The brand DNA of Paulúns matches consumers’ desire for transparent products made from carefully selected high-quality ingredients. Paulúns will maintain and strengthen its relevance through variants that meet consumers’ wishes and needs, thereby contributing to the growth of the granola segment in a transparent direction. This will ensure that crunchy granola can also be enjoyed as products with nutritional and healthy benefits. Therefore, we have

chosen to visually illustrate the ingredients on the back of the package for all our variants.

LATEST VARIANT WITH INGREDIENTS THAT SUPPORT THE NORMAL FUNCTION OF THE IMMUNE SYSTEM*

Iron, zinc, and copper contribute to the normal function of the immune system. Our latest Paulúns variant with orange, mango, and passion fruit is designed for consumers who desire high-quality breakfast products. At the same time, it targets consumers who want their diet

*The product should be consumed as part of a varied and balanced diet and a healthy lifestyle.

When developing new products and variants in the breakfast category, we look at global and regional consumer trends in lifestyle and sustainability to continuously develop products that meet consumers’ desires and needs.

We also want to take responsibility in terms of challenging consumer habits and offering products with nutritional and health benefits –without compromising the delicious taste and crunchiness. We aim to be both inspired and to inspire in the development of our products.

Sources: Nørgaard Mikkelsen: “Food Trends 2023” and Landbrug & Fødevarer “Global Megatrends Towards 2030,” Market Analysis, Consumer Economics & Statistics 2020

We give families the option to choose a whole grain breakfast also loved by children

The common denominator for many branded cocoa products in the breakfast category is added sugar. At Orkla Denmark, we challenge this with the launch of Havrefras Cocoa which have a reduced sugar content and increased whole grain content, meeting the requirements for both the Keyhole and Whole Grain logos – without compromising on the delicious taste, of course.

THE ICONIC HAVREFRAS – NOW WITH THE POPULAR COCOA FLAVOR

Increasing whole grain intake is high on the agenda for many Danes. According to a new survey*, a little over 50% of us eat whole grains daily, and two out of three Danes have great trust in the Whole Grain logo. One of the recommendations from The Danish Veterinary and Food Administration’s official dietary guidelines is to increase the proportion of whole grains in our meals.

Havrefras aims to meet the desire for more transparent products enjoyed by the whole family. Cocoa is the most popular flavor segment in the breakfast category, and Havrefras Cocoa fulfills the desire of families with children for a combination of cocoa flavor and whole

grains. Families with children are the core target group. However, Havrefras Cocoa appeals to anyone looking for a simple and familiar breakfast product, now with a little twist.

POSITIVE RECEPTION AMONG CONSUMERS

The new flavor, combined with the well-known Havrefras benefits such as high fiber content and high-quality ingredients, has proven to be an attractive breakfast for the whole family.

Consumers have welcomed the new product since its launch in the fall of 2022. In 2023, Havrefras Cocoa has contributed to Havrefras gaining market share in the breakfast category, and the proportion of customers who return to buy the product again is high.

Havrefras Cocoa features the classic crispy oat pillows with a flavor combination of mild balanced cocoa and rich oats.

The product contains 69% whole grains and is both Keyhole-labeled and Whole Grain-labeled, with the cocoa being Rainforest Alliance certified.

*Megafon consumer survey conducted for the Whole Grain Partnership, March 2024

Nothing beats ‘taste’ and ‘quality’ when Danes choose food – not even ‘health’

When aiming to make well-known foods healthier and more climate-friendly, caution is essential, as Danes stubbornly seek the quality and taste they know and do not appreciate changes. At Orkla Denmark, we are aware of this challenge and work diligently to balance the desire for healthier foods with the familiar, good taste. We interviewed Stine Overgaard, Head of Innovation, about this dilemma.

When asked, most Danes say they want to eat more varied, healthier, and more climate-friendly diets. However, a look in shopping carts often reveals that taste and quality are the primary factors guiding our choices at the store shelves.

Therefore, caution is necessary when modifying product recipes at Orkla Denmark. And it is necessary according to Stine Overgaard: “It’s about both health and climate – but absolutely not about profits”.

“Our initiative to reduce fat, salt, and sugar is driven by a desire to be a responsible company, caring about both people’s health and the environment. Although it can be economically challenging, as healthier alternatives are often more expensive, we see it as a necessary investment in the future.”

ABOUT REDUCING SUGAR AND SALT

Orkla Denmark has an ongoing focus on improving and developing existing recipes to reduce the content of sugar and salt, and even small changes can have a significant impact on public health over time.

TECHNOLOGY IS ONE OF THE KEYS

One of the biggest challenges is maintaining the taste that consumers know, even when reducing fat, salt, and sugar. Close collaboration with suppliers and technological innovation are key. “We have introduced a salt-reduced meat aroma that helps us maintain the rich umami taste, even when the salt content is low,” Stine explains. New technology in production, such as improved rinsing techniques, also plays a significant role in maintaining quality.

GRADUAL CHANGES

Over the past 20 years, many companies have produced and marketed products as ‘light’ or ‘reduced content,’ but these products are often rejected because consumers fear that ‘reduced fat’ means reduced flavor. “It’s about taking small steps and introducing changes gradually, with complete control over taste and quality,” Stine says.

CAREFUL COMMUNICATION

Communication is crucial when we introduce changes to the content of our products. “It is important that we carefully consider both how and what we communicate. A changed perception can affect the taste experience, even if the product doesn’t taste different,” Stine emphasizes.

This is essential to ensure that the customer experience remains positive even during the transition to healthier alternatives. There are numerous examples in the food industry of consumers reacting negatively when it is merely suggested that the composition of their favorite products has changed – even if the products become healthier and the changes are neither noticeable in taste nor affect the usage of the food. “That’s why you need to be careful”, Stine Overgaard says.

Climate and environment

At Orkla, we recognize the impact our business has on the climate and the importance of transitioning our production from fossil fuels to renewable energy sources, while also focusing on continuously reducing our energy consumption, water usage, and waste.

Nature and the environment are being destroyed faster than ever before. 2023 is expected to be the hottest year on record. More than one million plants, animals, and other living organisms face the threat of extinction. The effects of climate change, biodiversity loss, and pollution are becoming increasingly evident to people, exemplified by extreme floods, droughts, destroyed ecosystems, and plastic pollution. These extreme weather conditions demonstrate the need for increased action and the importance of joint efforts by consumers, businesses, and policymakers to meet climate goals.

AMBITIOUS GOALS IN LINE WITH SCIENCE

At Orkla, we have set an ambitious goal to be climate-neutral by 2045 for scopes 1, 2, and 3. Additionally, we have set interim targets to reduce scopes 1 and 2 by 70% by 2030. Our scope 3 interim target for 2030 is under review and will be finalized in 2024. These goals are verified by The Science Based Targets initiative (SBTi). SBTi is a global movement, helping companies set scientifically based climate targets in line with the goals of the Paris Agreement to limit global warming.

FOSSIL-FREE FACTORIES

Transitioning from fossil fuels to renewable energy sources in our factories is part of the journey towards climate neutrality. During 2023, plans were developed for all production sites on how to transition production to renewable energy sources. These plans are inputs for the development of a comprehensive Net Zero transition plan to be carried through in 2024. Converting all factories is investment-intensive, requiring a long-term plan to spread investments over the period leading up to 2045.

Our work on climate and the environment relates to UN Sustainable Development Goal 13

CO2e / TON PRODUCED

CO2 SCOPE 1 AND 2 REDUCTIONS

We continuously work to reduce energy consumption at our factories. The 38% reduction compared to 2016 is primarily due to renewable energy sources secured through the purchase of origin certificates from hydropower.

The chips factory continuously reduces its water consumption

At the Søndersø factory, 14,000 tons of potatoes are received annually to produce tasty and crispy chips. The process starts with cleaning the potatoes from dirt, peeling them, slicing them, and then rinsing them again to remove starch before cooking, seasoning, and packaging.

39% RENEWABLE ENERGY

Reducing emissions from our own production requires a transition from fossil fuels such as natural gas and oil to renewable energy sources such as electricity, wood pellets, or similar. At Orkla, we have a goal to achieve > 60% renewable energy by 2025.

Both the initial washing process and the rinsing process after slicing the potatoes use a significant amount of water. Over time, we have optimized the amount of water used. We are now recycling the water to the effect that water from the rinsing process is used for washing, meaning only new clean water from the tap is needed for the final rinsing process. The entire

washing process can therefore be handled with recycled water from the rinsing process.

50% REDUCTION IN WATER CONSUMPTION IN 2023

In 2023, the process was further optimized by collecting condensate water from the cooking process to be used for rinsing. This means that now only tap water is needed for the last of the three rinsing stages. This has already reduced water consumption in the rinsing process by up to 50%. The reduction will have a full-year effect on water consumption in 2024.

REDUCTION OF WATER CONSUMPTION

We strive to reduce water consumption at our factories. This is achieved through improved cleaning processes and optimization of how water is used, collected, and recycled. During the past 5 years, we have reduced total water consumption by 23% – exemplified by the case from Søndersø to the right.

Fighting food waste

Around 1/3 of the entire food production is not eaten. Therefore, at Orkla, we focus on how we, as a food producer, can contribute to minimizing waste throughout our supply chain – from farm to fork. At Orkla Denmark, we have set a goal to cut our food waste by 50% by 2030.

Food waste has significant climate and environmental consequences, as it is a major contributor to greenhouse gas emissions. It is estimated that in Denmark, we throw away more than 700,000 tons of food every year, equivalent to 124 kg per person – including food that is still good to eat.

When addressing food waste at Orkla, we focus on three types of waste:

PROCESS WASTE

First and foremost, we focus on reducing process waste generated during the production of our products. Process waste is waste that should have become food. It is generated due to production errors, quality issues, or process stops.

FINISHED PRODUCT WASTE

Secondly, we try to avoid finished products ending up in the trash. Unfortunately, this happens when sales are less than expected, resulting in overproduction.

HOUSEHOLD WASTE

Finally, we strive to prevent our products from ending up in the trash at consumers’ homes because the products are close to or have passed the “best before” date.

Our work on food waste relates to UN Sustainable Development Goals 2, 12, and 17

After a significant increase in process waste in recent years, the trend broke in 2023

We have experienced an increase in process waste since 2020, primarily attributed to the Easyfood factory in Kolding. The Skælskør and Skovlund factories delivered a reduction in their process waste in 2023. The factory in Skælskør has now achieved a total reduction of 66% since 2014 through continuous focus. Søndersø had a slight increase in 2023.

A part of the increase at Easyfood can be attributed to the startup of a new production line, line 3. However, the entire significant increase

in Easyfood’s process waste cannot be solely attributed to the new line. Therefore, a major process waste project was initiated and executed at the end of 2022, which has truly reversed the negative trend in 2023. You can read more about this on the next page.

The learnings from the process waste project will be implemented at other factories in Orkla Denmark in 2024 to reduce process waste at all production sites.

PROCESS WASTE IN THE PRODUCTION OF FINISHED PRODUCTS, ORKLA DENMARK

Easyfood reverses the trend and reduces process waste by 32% after years of high increases

At Easyfood, a period of negative development in process waste was observed. Therefore, a targeted effort was launched at the end of 2022. In 2023, Easyfood succeeded in reversing the trend and achieving a 32% reduction from the previous year.

A DEDICATED TEAM WITH A CLEAR FOCUS

Based on an analysis of the factory processes in food waste, it became clear that the largest waste occurred in the production process itself and not because of unsold finished products. The factory management established a dedicated team of employees with various skills tasked with reducing waste in production.

WEEKLY WASTE MEETINGS

The team met weekly and used a consistent template for their approach.

First, data for each product produced in the previous week was analyzed. By comparing the estimated waste per product with the actual waste, the team systematically identified products with high waste.

They then discussed possible causes of the waste and initiated actions to optimize raw material usage and ensure a smooth process with minimal waste.

REDUCTION OF 965 TONS

Through a focused and systematic effort in 2023, it was possible to reduce production waste by 965 tons compared to the previous year, equivalent to about four weeks of finished product production.

Process waste in production was reduced by 32%, from 226 kilos per produced ton in 2022 to 155 kilos per produced ton in 2023.

The factory manager at Easyfood, Peter Mortensen, is pleased with the result:

PROCESS WASTE IN FINISHED PRODUCT PRODUCTION, EASYFOOD

POSITIVE SPIN-OFF EFFECTS

Besides producing more finished products with the same number of raw materials, the focused effort also had other indirect benefits. For example, the factory experienced the lowest number of complaints from customers and consumers in 10 years, and overall productivity also increased in 2023.

Upcycling ingredients reduces food waste

Easyfood is leading the way in creating value through circular communities and upcycling ingredients.

The fight against food waste must be tackled on many fronts. At Easyfood, creating innovation through collaborations with other companies is an integral part of how value is created, and several of these collaborations have a unique approach in terms of how a circular mindset can support better utilization and upcycling of raw materials, thereby utilizing process waste.

INCREASED FOCUS ON CIRCULAR COMMUNITIES

In our work with market trends and tendencies, we have seen an increased focus on circular communities that can strengthen relationships and sustainability in the food industry. Circular communities are a growing trend within the food industry. This phenomenon involves establishing sustainable supply chains where resources are reused, and waste is minimized. We must collaborate across industries and develop innovative methods to reuse and recycle materials. By creating circular communities, we can produce more sustainably while also achieving economic benefits.

“We have become very aware of the value we can create together across the food industry. It is necessary to combine our knowledge and resources to develop sustainable products. Working with side streams and using upcycled ingredients are examples of how we actively work with circular production”, says Johanne Engelhardt Said, Head of Innovation & Design at Easyfood.

CIRCULAR COLLABORATIONS IN 2023

In 2023, we continued our membership in The Circular Coffee Community and collaborated with Kaffe Bueno. Additionally, we entered a new partnership with the company Agrain.

Our second product with upcycled ingredients, “SocialSquare,” has been fully developed and was launched at the beginning of 2024.

The Circular Coffee Community

The Circular Coffee Community is a non-profit network established in 2020. Its members consist of private companies and other organizations aiming to promote circular transformation within the coffee sector.

WE CONTINUE COLLABORATING WITH KAFFE BUENO

In 2022, we launched our first product with upcycled ingredients: MoccaBun. In collaboration with Kaffe Bueno, we developed MoccaBun using KAFFIBRE®. This product is a new interpretation of our classic Cinnamon Bun, where several ingredients are replaced with Kaffe Bueno’s coffee by-product, KAFFIBRE®.

NEW PARTNERSHIP TRANSFORMING MALT INTO FLOUR

In collaboration with the company Agrain, we developed our second product with an upcycled ingredient in 2023 – spent grain flour. Spent grain flour from Agrain is derived from surplus malt from breweries and is another example of how one of the largest waste streams in the food industry can be utilized. The spent grain flour reduces environmental impact and provides nutritional benefits not found in traditional baking flour.

39% reduction in finished product waste but increasing trend needs to stop

At Orkla, we believe that food should not be produced to be thrown away. We produce food to be eaten. Unfortunately, there are times when finished products in our inventory are close to their expiration dates and must be discarded.

We have observed a slight increase in food waste over the past two years after several years of improvements. This increase is particularly noted at the chips factory in Søndersø and the Easyfood factory in Kolding. However, the factory in Skælskør has continuously achieved a steady decline

and has met the target of a 50% reduction by 2025 compared to 2017.

SEVERAL SOLUTIONS TO REDUCE FOOD WASTE

Throughout 2023, we optimized and put extra focus on our S&OP process (Sales & Operations Planning). Additionally, we have established good cooperation agreements with food waste organizations such as Fødevarebanken, Motatos.dk, and Too Good To Go. We also have our own website for the KiMs brand, aiding our snack waste reduction.

FINISHED PRODUCT WASTE, ORKLA DENMARK

Various solutions contribute to reducing finished product food waste

IMPROVED S&OP PROCESS AS PREVENTION

Planning is key to ensuring the production of the right quantities. This involves maintaining high delivery reliability to our customers while avoiding excess inventory. In 2023, the S&OP team increased their efforts to ensure both better delivery reliability and reduced waste.

PARTNERSHIPS SAVE 86 TONS OF FOOD WASTE

For any excess inventory, we have established partnerships with various food waste organizations. Motatos is a website offering great deals. Fødevarebanken provides food to vulnerable Danes, and Too Good To Go creates various “surprise bags” and boxes sold via their app.

85 THOUSAND BAGS OF SNACK WASTE SAVED THROUGH KIMS WEBSHOP

The KiMs brand has established its own webshop with great offers, allowing loyal KiMs consumers to have their favorite chips delivered directly to their homes at attractive snack waste discount prices. Chips, snacks, and nuts close to their “best before” date are sold here, amounting to 7 tons of chips and snacks.

Sustainable packaging

Packaging is essential for maintaining food safety, extending shelf life, and protecting our products during distribution, on store shelves, and in home refrigerators. The biggest challenges are packaging not being sorted and collected for recycling, as well as over-packaging. At Orkla, we proactively work to support more circularity in the packaging value chain, as well as focus on minimizing our own packaging consumption.

MORE CIRCULARITY AND RECYCLING

In recent years, we have focused on developing our packaging in a more sustainable direction. Our primary focus has been to ensure that our packaging is designed for recycling. We have switched packaging types and ensured that, as much as possible, our packaging is made from mono-materials, which can be sorted and recycled. We still have a few packaging types that are challenging to make recyclable due to process, quality, and durability issues, such as our KiMs Peanuts bag. We are working with colleagues from our sister companies to find a recyclable solution for these. However, we are pleased that 99% of the packaging used for our self-produced products is now recyclable.

REDUCING RESOURCE CONSUMPTION

While packaging is a crucial part of the quality and functionality of a product, we should not use more material than necessary. Therefore, we continually challenge ourselves to see if we can use less packaging. During the year, we have adjusted the thickness of the plastic in our Naturli “meat” trays and the thickness

of the foil in our KiMs chips bags. You can read more about these cases later in the report.

DEVELOPMENT IS NECESSARY FOR MORE SUSTAINABLE PACKAGING USE IN DENMARK

A well-functioning packaging value chain from production to waste sorting, collection, and recycling is necessary. It is not enough for us producers to design for recycling. The rest of the value chain must also be efficient. In Denmark, we still have some way to go. The EU has focused on this issue through extended producer responsibility, which will come into force in mid-2025.

Better sorting and recycling are prerequisites for making more recycled plastic of food-grade quality available on the market. Therefore, Orkla is willing to participate in various development projects. Read more about these initiatives later in the report.

Our Work with Sustainable Packaging Relates to UN Sustainable Development Goals 13, 14, and 17

Packaging consumption for Orkla Denmark’s own production

In 2023, Orkla Denmark used approximately 14,000 tons of packaging across our four factories.

Paper-based packaging is the most common material type, accounting for 44% of total packaging consumption by weight. Both our consumer products and foodservice products are packed and sold in bundles, i.e., cardboard boxes containing multiple products. All our paper and cardboard are FSC certified.

Glass constitutes 33% of our packaging consumption, with 66% of the glass coming from recycled material.

Plastic packaging makes up 18% of the total amount, with 11% of plastic packaging coming from recycled materials and 8% from bio-based material. 71% OF THE PACKAGING IS FROM RENEWABLE OR RECYCLED MATERIALS

99% OF THE PACKAGING IS DESIGNET FOR RECYCLING

The Extended Producer Responsibility for packaging is approaching

EU introduces an Extended Producer Responsibility for food packaging to promote sustainability, environmental protection, and a more circular economy. As a result of the producer responsibility, the economic responsibility for collecting, recycling, or disposing of food packaging is transferred to the producers. The producer responsibility is already implemented in most EU countries, and now Denmark is up. Intense efforts are underway among legislators, administrators, and producers to be ready for implementation in July 2025.

y imposing responsibility on producers for the environmental impact of packaging from production to disposal, it is expected that more recyclable and recycled materials will be designed, reducing waste and resource consumption.

The EU also aims to reduce the amount of waste that ends up in nature, which can have serious consequences for ecosystems and wildlife. By making producers responsible for handling packaging waste, incentives are created to establish collection and recycling schemes, thus improving the foundation for a more circular economy where materials are reused and recycled instead of being used once and then discarded. The incentive is further strengthened by introducing environmentally graded contributions, making recyclable and less climate-intensive packaging cheaper to market.

PREPARATIONS ARE WELL UNDERWAY

Orkla welcomes the producer responsibility, as we believe it will improve the circular value chain for food packaging.

Producer responsibility means that we must know exactly how much of which types of packaging are placed on the market by Orkla Denmark. This applies regardless of whether it is our own produced products, products bought and resold from sister companies, or products bought via a third-party supplier.

We are therefore in the process of collecting detailed packaging information on all products and entering it into our Master Data so that we can account for and report on the exact quantities of packaging. This includes primary, secondary, and transport packaging. Additionally, all sales materials are also included.

Small adjustments make a difference

In a year without large investments allocated for sustainability initiatives, our focus has been more on the many small adjustments we can implement in our daily operations and processes, thus moving step by step towards a more sustainable everyday life. Here are some highlighted examples of adjustments implemented in 2023.

REDUCTION IN THICKNESS OF NATURLI’ TRAY

By reducing the thickness of the tray, which is made of 75% rPET and 25% PET, from 550 microns to 400 microns, we have reduced our CO2 emissions from packaging by 24% per unit.

This type of tray is used for four different products, which together accounted for 400,000 units sold in 2023.

REDUCTION IN FOIL THICKNESS OF KIM’S CHIPS BAGS

By reducing the foil thickness, made of OPP plastic, from 50 microns to 45 microns on several of our KiMs chips bags, we have reduced our CO2 emissions from packaging by 9% per unit.

The bags that have undergone this change are our medium bags (75-95 g) and the bags used in the KiM’s Crunch Cut product series.

These bags are used for a total of 13 different product numbers, and in 2023 we sold a total of 3.3 m of these units.

CHANGE OF MATERIAL IN ‘WRAP AROUND’ PACKAGING FOR DEN GAMLE FABRIK JAM

For our Den Gamle Fabrik jams sold on the German market, we have implemented a change in the ‘wrap around’ packaging from plastic to cardboard. This change has reduced the CO2 emissions from packaging per unit by 26%.

In 2023, we sold 570,000 of these units.

New technologies needed to ensure better recycling of food plastics

Innovation and new technologies are essential for ensuring higher recyclability of food plastics. Orkla Denmark continuously contributes to the development of better solutions for recycling plastics used in food packaging. Together with public and private stakeholders working towards better solutions, we participate in various development projects, bringing our insights as food producers and providing test capacities.

RECYCLING OF FOOD PLASTICS IS A PARTICULARLY BIG CHALLENGE

We have high standards for food safety and extensive EU regulations in the area, creating an additional challenge in increasing the recyclability of plastics in food contact.

It is essential to develop technologies that can maintain a high level of food safety while increasing the circularity of plastic packaging. Orkla Denmark aims to help solve this problem.

COLLABORATION ACROSS SECTORS

To develop relevant technologies as solutions to this complex problem, it is necessary to combine knowledge across sectors and institutions to create cross-sector collaborations and solutions.

EACH PROJECT CREATES NEW KNOWLEDGE

The challenge with development and innovation in new technologies is that we do not necessarily know what the ideal solution to the problem looks like yet. Therefore, Orkla Denmark continuously participates in various projects, each proposing different solutions to the problem.

When a project is completed, we do not necessarily have the entire solution, but at the very least, we have contributed with new knowledge that can help guide development because together we have become wiser.

In 2023, Orkla Denmark was involved in two different types of projects, each proposing different ways to create more efficient recycling of plastics in the food industry. You can read about these on the next page.

Our participation in various development projects relates to UN Sustainable Development Goal 17.

TREATMENT OF PLASTIC WASTE IN THE EU

Source: European Parliament: Plastic Waste and Recycling in the EU: Facts and Figures, 2018

Circular Use of Plastics for Food

PROJECT PURPOSE

Development of new technology for recycling PP and PE plastics for food use within three segments: 1) Industrial plastic waste, 2) Post-consumer plastic waste from known sources, and 3) Household-sorted plastic waste.

PROJECT OWNER

Ministry of Food, Agriculture, and Fisheries

TIMELINE

2021-2024

ORKLA DENMARK’S CONTRIBUTION

Collection of knowledge, input to requirement specifications, and assessment of the suitability of plastic segments for food packaging.

RESULTS

Technologies have been developed which already allow this type of recycled plastic to be marketed in two out of the three tested plastic segments. For household-sorted plastic, offering the greatest potential, the technology must first be applied for as a “Novel Technology” under EU legislation on Food Contact Materials (FCM).

NEXT STEPS

The learnings from the project will be carried forward into a new project: “Circular Food Packaging” starting in 2025. The Danish Technological Institute is the project owner and is working in the spring of 2024 to establish a consortium behind the project. Orkla has committed to participating.

HolyGrail 2.0

PROJECT PURPOSE

Development and implementation of digital watermarks that contain information about the material on individual plastic packaging. Using cameras on the sorting unit, this information can be decoded, allowing the packaging to be sorted correctly and recycled.

PROJECT OWNER

AIM – European Brands Association with support from the Alliance to End Plastic Waste

TIMELINE 2020-2026

ORKLA DENMARK’S CONTRIBUTION

Implementation of digital watermarks on selected products for tests at the Amager Resource Center in the semi-industrial test phase and ensuring a significant amount of post-consumer packaging for the next test phase. We were required to deliver a minimum of 10 packages (PE, PP, PET), and these are on the market today.

RESULTS

Successful Proof of Concept (HolyGrail 1.0) and successful semi-industrial tests of the sorting technology down to the SKU level.

NEXT STEPS

Industrial test phase and validation of the technology in an operational environment, with a Go-to-Market launch planned for 2024.

People and society

At Orkla, we engage with many communities and people throughout our value chain. Our most significant impact is naturally in Denmark, where we produce and market our products. We source many raw materials locally but also obtain raw materials from several other countries in Europe and the rest of the world. We strive to act responsibly with high integrity, ethics, and morality. Our ambition is to positively influence both the communities and the people we interact with.

CREDIBILITY, INTEGRITY, ETHICS, AND RESPONSIBLE BEHAVIOR

Operating primarily in the Nordic countries, Orkla adheres to solid Nordic values, emphasizing decency, high ethics, and morality. Our three core values at Orkla are: credible, brave, and inspiring. Credibility is largely about ensuring that our stakeholders, customers, suppliers, and consumers can rely on us to keep our promises and act responsibly in all our actions.

In 2023, we updated our internal code of conduct, shared it with all employees, and conducted e-learning to ensure understanding throughout the organization. All new employees are introduced to the code of conduct and must agree to adhere to it to be part of Orkla.

Our Orkla Code of Conduct sets the framework for our operations, ensuring we always act within the law, are responsible towards people, society, and the environment, and perform our work with high integrity.

You can read the Orkla Code of Conduct by scanning the QR code.

Our Work with People and Society Relates to UN Sustainable Development Goals 2, 5, 8, 13, 14, and 15

Orkla – a responsible employer focused on employee safety, development, and well-being

We aim to be recognized as a responsible company and workplace with a culture characterized by openness, respect, and consideration. People are our driving force. Therefore, we systematically ensure that our employees have a safe, fair, and stimulating workday across locations and functions. We focus on being an employer that embraces diversity and provides opportunities for our employees to grow. We want all employees to be proud of being part of Orkla Denmark.

WORK ENVIRONMENT AND SAFETY

Everyone should feel safe at work and know that we have a good working environment, both physically and mentally. We have workplace safety organizations at all locations with employee representatives to help ensure a good daily working environment.

Safety and zero workplace accidents are high on the agenda, especially at our production facilities where the risk of accidents is higher than in office work. Here, safety is a natural part of the daily routine for both managers and employees.

CLOSER MONITORING OF EMPLOYEE WELL-BEING

Fundamentally, we want all Orkla employees to thrive in their daily work. We know that employees who are happy at work stay longer, perform better, and contribute positively to the atmosphere and culture of an organization.

In 2023, we implemented a new tool, Winning Temp, to measure employee well-being and engagement continuously. Although it was implemented mid-year and is still relatively new, it has already provided valuable insights into elements that can be improved in local teams to enhance well-being.

EMPLOYEE DEVELOPMENT AS LEVERAGE FOR WELL-BEING

Training and developing our employees are crucial for their well-being and job satisfaction, as well as for attracting new employees and achieving our business goals. At Orkla, we have various academies, such as The Brand Academy, The Procurement Academy, and leadership development programs, and we also use external education when relevant.

EXTRA FOCUS ON LEADERSHIP DEVELOPMENT

Good leadership is fundamental for maintaining a good culture and well-being in an organization. Over the past three years, Orkla Denmark has integrated and consolidated several smaller companies into the Orkla Denmark known today. We saw a need to establish a common leadership language.

In 2023, Orkla Denmark launched a tailored leadership development program developed in collaboration with consultants from Resonans. The program focuses on the leader’s self-development and understanding, coaching, communication, and change management. All leaders across Orkla Denmark participate in the program, and the groups are mixed across all leadership levels and locations to create better networks and understanding of each other’s different challenges.

INCREASED FOCUS ON DIVERSITY IN FUTURE

DE&I (Diversity, Equity, and Inclusion) is a topic of much discussion in society and within Orkla. We believe that having diverse skills, backgrounds, and perspectives makes us better. Throughout 2023, we have mapped out where we stand on various DE&I parameters and engaged in discussions about where we want to be, working towards formulating a concrete DE&I strategy.

Read more about us as a responsible employer on the next pages.

Increased focus on safety brings positive results

At Orkla Denmark, all employees should experience being part of a healthy and safe working environment, where everyone returns home safely from work – every day. Our goal is zero workplace accidents.

EHS WEEK FOR ALL EMPLOYEES

As in previous years, we also focused on EHS (Environment, Health, and Safety) in a designated week in 2023, when all Orkla Denmark locations directed their attention to how we take care of ourselves and each other.

“EHS week is a reminder of how we want to operate every day. It’s important that we all hold each other accountable and work together as a team to create a safe and healthy workplace”, says Supply Chain Director, Jette Bruun.

We saw a slight increase in the number of accidents at our production sites in 2022. Therefore,

we intensified our efforts in 2022 and further in 2023 to prevent accidents and sharpen our focus on safety.

INTENSE FOCUS ON SAFETY

Through an increased number of EHS conversations and training, we managed to reduce the TRR (Total Recordable Rate) from 14 in 2022 to 8.7 in 2023. This rate is still too high as our goal is zero workplace accidents, but it demonstrates that with a collective focus and continuous efforts towards safety, we can make a difference.

Selected activities from EHS week at Orkla Denmark in week 39

KOLDING

Safety competitions through questionnaires and quizzes that encourage employees to think about safety procedures and regulations.

SØNDERSØ

Introduction to a new emergency drill, including evacuation from the factory, designed to ensure everyone is prepared for emergencies.

SKOVLUND

Safe forklift driving, with training and focus on safety dialogue through safety conversations. ‘GEMBA walk’ with a focus on ‘lessons learned’ from recent experiences.

SKÆLSKØR

Safety culture initiatives, including safety conversations in all departments and introduction to ‘lessons learned’ from recent experiences through ‘GEMBA walk’.

Heading for 50% women at all levels in the organization

Orkla Denmark aims to be a modern and attractive workplace that contributes to gender equality and is open and inclusive towards all employees regardless of gender, age, background, and other aspects. We believe that diversity is a strength for the company.

Studies and research show that the best workplaces reflect the composition of gender, age, and background of society as closely as possible. These are the places where we feel the most secure, happiest, develop the most, and are the most productive.

NEW PARENTAL LEAVE POLICY

In response to the new parental leave legislation, Orkla Denmark has adapted the framework for maternity and parental leave. With this adjusted arrangement, we aim to contribute to greater gender equality. We hope that the new policy will provide better conditions for both employees and their families. Our ‘Parental Leave Policy’ came into effect on January 1, 2023.

CELEBRATING INTERNATIONAL WOMEN’S DAY

At several of our locations across Orkla Denmark, we served breakfast and later cake for everybody, and we listened live to the debate organized by Orkla ASA in celebration of International Women’s Day. The purpose of gathering physically to discuss the topic and focus

on it was, according to CEO Carsten Hänel, to “address the topic, create dialogue, listen to each other, and then make the decisions that move us towards a more inclusive workplace”.

DIVERSITY POLICY UNDER DEVELOPMENT

We are working on developing our ‘Diversity Policy’ as part of our overall strategy for DE&I. This policy will strengthen the diversity of the organization, including a sharper focus on gender representation in our recruitment processes. We plan to launch the strategy in 2024.

Additionally, we have developed a senior policy aimed at making the transition from work life to retirement easier and retaining experienced employees for as long as they wish and can contribute to the company’s operations. This policy came into effect on January 1, 2024.

GENDER DIVERSITY IN THE ORGANIZATION (PERCENTAGE OF WOMEN)

41%

TARGET: 50% BY 2025

Our Work with DE&I Relates to UN Sustainable Development Goal 5

GENDER DIVERSITY IN OTHER LEADERSHIP LEVELS (PERCENTAGE OF WOMEN)

35%

GOAL: 50% BY 2025

GENDER DIVERSITY IN MANAGEMENT (PERCENTAGE OF WOMEN)

29%

GOAL: 50% BY 2025

New tool provides real-time employee feedback

At Orkla Denmark, we have adopted a new innovative tool for wellbeing surveys. Now, employees can report in real-time how they feel, enabling management to adjust and address potential issues proactively.

It can be challenging for employees to honestly communicate how they feel about their work. Do they have too many tasks? Too few? Do they enjoy coming to work, and is the collaboration with their colleagues as it should be?

Similarly, it can be difficult for leaders to have a finger on the pulse of the organization and anticipate potential problems.

With the Winningtemp tool, Orkla Denmark has created a dynamic bridge between management and employees. Now, Orkla’s employees provide continuous feedback on various parameters, significantly enhancing understanding.

“We now have our finger on the pulse and can act in real-time”, says Jan Jensen, HR Director at Orkla Denmark.

BETTER INSIGHT INTO WELL-BEING AND UNDERLYING CAUSES

The shift to a more dynamic feedback culture has given us unique insights into what is truly happening among employees – far beyond what traditional methods can reveal. By continuously collecting and analyzing anonymous feedback, Winningtemp gets to the heart of employee well-being, facilitates honest conversations, and highlights paths for improvement.

SATISFACTION (1-10 SCALE)

7,4

AVERAGE SCORE

JUNE-DECEMBER 2023

2,400 COMMENTS IN 6 MONTHS Leaders at all levels now have access to a dashboard. It takes some adjustment and experience to handle continuous feedback – and it is crucial that leaders act when necessary.

This has changed our approach to leadership from being intuitive to being more data-driven

says Jan Jensen.

However, the system is not solely based on the vast amounts of quantitative data, which provide valuable real-time information about each department and across the organization.

The adaptive nature of the system makes it ask follow-up questions based on employees’ answers. This allows for deeper insights into the reasons behind an employee’s satisfaction or dissatisfaction.

In just the first six months since Orkla Denmark implemented Winningtemp in 2023, employees have provided comments 2,400 times.

INVITING FEEDBACK

It is fundamentally about creating a culture where employees are not just allowed but invited to give their honest feedback – both positive and negative.

This level of honesty and the ongoing pulse on the organization cannot be achieved in the same way with, for example, an annual satisfaction interview or a whistleblower scheme, which is only activated when something is seriously wrong.

“We are creating a culture where we value and expect feedback. This has strengthened trust. Our employees know their voices are heard and that feedback leads to action”, says Jan

Jensen. For example, when an employee experienced inappropriate behavior in a department, they wrote a comment via Winningtemp, allowing management to quickly address and resolve the issue.

PLACING DEMANDS ON LEADERSHIP

The new feedback system is thus a valuable tool for creating genuine change and overall developing the workplace and culture positively, where everyone feels heard and appreciated.

However, it requires leadership to commit to acting on employees’ feedback – otherwise, the system loses its relevance and credibility.

In the end, it is the link between employee feedback and concrete leadership actions which defines success. It is crucial for each leader to create dialogue with employees about the results in Winningtemp

Jan Jensen, HR Director

Investing in our employees’ development

At Orkla Denmark, we prioritize and invest in the professional and personal development of our employees. This investment benefits both Orkla and the individual employees. In addition to structured development discussions between employees and their immediate supervisors, we also invest in further education. Here, we share personal experiences from two employees and a leader.

Clearly, employees improve and understand flows and processes in-depth

To me, it makes perfect sense to invest in our employees’ further education. Fundamentally, it’s about retaining good competencies within the company.

Currently, I have three team members who are pursuing further education. I select those who are motivated, know the company well, and have demonstrated a consistent effort. Sometimes, employees come to me, persistently expressing their desire to advance. This persistence is a good indicator of their motivation.

While employees are undergoing training, they essentially maintain their previous responsibilities, but it’s evident that they improve and understand flows and processes more deeply.

I preferred fixing machines over operating them

After working at Orkla for several years as a production employee, I discovered that I preferred repairing the machines over operating them. Consequently, I applied for an internal position in the maintenance department. Initially, I was rejected because I lacked a qualification in automation.

Determined to pursue this path, I engaged in discussions with leaders in both my current and hopeful future departments. I began the automation technician training program in August 2021 and completed it in 2023.

My training was extended in 2023, and I am now working as an automation technician apprentice, set to finish in 2025. I have already moved to the maintenance department, despite still being in training.

I felt like I needed more challenges and could contribute more

began the process operator training program in the winter of 2023, after nearly five years at Orkla. I felt I needed more challenges and could contribute more, which I discussed with my supervisor.

One day, someone from HR approached me about starting the training program. Initially, I was unsure of the benefits, but my former supervisor had the same qualification, and I would receive a salary throughout the training, so I decided to go for it.

I will complete my training in 2025. Ultimately, my dream scenario is to transition to a technical position or become a line manager.

Kenneth Pedersen Automation Technician Apprentice, Søndersø

Poul Grymer Larsen Production Manager, Søndersø

Khaled Sadia Production Assistant, Kolding

Our commitment to the community

Orkla Denmark continuously contributes to the society around us. Product donations made up the largest part of our contributions in 2023, but we also made smaller financial donations to charitable causes as well as to local associations and events.

PRODUCT DONATIONS TO VULNERABLE CITIZENS BEFORE CHRISTMAS

Many of our contributions to the community are in the form of products that we donate to local associations and organizations, which help distribute them to vulnerable Danes. In 2023, our largest donations were to Fødevarebanken and Stop Spild Lokalt Danmark. The latter distributed donations before Christmas to citizens who are particularly economically pressured at this time of year. Additionally, we also donated products to a number of smaller local associations.

It is natural for us to support the vulnerable and make a difference in society through product donations, as it aligns with our core business. It is a win-win approach, helping vulnerable citizens and supporting the community while avoiding potential food waste.

SMALLER FINANCIAL DONATIONS

We also made smaller direct financial contributions to e.g. Julehjælpen.dk and the Children’s Cancer Foundation, which our dedicated employees supported for the fifth consecutive year by wearing football jerseys on #Fodboldtrøjefredag (Football Shirt Friday). Our direct financial donations amounted to 51,000 DKK in 2023.

ENGAGEMENT THROUGH SPONSORSHIPS

We support the local communities where we are present, including sponsoring various local athletes, associations, and events. In 2023, Easyfood again sponsored the “Talent of the Year” award, which recognizes young elite athletes who may later become ambassadors for Kolding.

*Estimate based on recommended retail prices and estimated recommended retail prices

ESTIMATED VALUE* OF PRODUCT DONATIONS, IN MILLION DKK 5,7

Respect for human rights and the environment in our value chain

At Orkla, our ambition is for our purchased raw materials to be produced with consideration for society, local communities, and the environment. This involves promoting respect for human rights, good environmental standards, and responsible business practices, as well as advancing the transition to long-term sustainability in agriculture and other raw material production. Additionally, we aim to ensure that none of the raw materials used by Orkla contribute to the risk of tropical forest deforestation.

INCREASED FOCUS ON SUSTAINABLE VALUE CHAINS

The responsibility of companies to ensure human rights and environmental impact through their value chains will increase in the coming years via the EU’s Corporate Sustainability Due Diligence Directive.

Orkla has many suppliers, with the majority located within Europe, including local Danish suppliers for products such as potatoes for our KiMs chips, red cabbage for our Beauvais red cabbage, and wheat flour for our Easyfood baked goods. However, we also source raw materials from more high-risk areas around the world.

RISK-BASED APPROACH

At Orkla, we have adopted a risk-based approach to responsible sourcing. We have identified the raw material groups with the highest risk of human rights violations and negative environmental impacts in the countries and areas where these raw materials are cultivated.

High-risk raw materials include palm oil, cocoa, marine products, rice, animal products, soy, hazelnuts, cashew nuts, black pepper, chili, and vanilla. Our ambition by 2025 is to only purchase these raw materials from producers who can document sustainable production. We seek suppliers who are committed to and maintain their own sustainability standards.dokumentere bæredygtig fremstilling. Vi går efter leverandører, der selv arbejder for og vedligeholder egne bæredygtighedsstandarder.

Furthermore, we also utilize third-party certifications wherever possible, such as the Rainforest Alliance for our cocoa and RSPO for palm oil.

STRATEGICALLY PRIORITIZED RAW MATERIALS

In addition to the identified high-risk raw material groups, we have also identified several other raw materials that may not necessarily have an increased risk due to the type of raw material or the area in which it is grown, but which we still want to ensure are produced sustainably. These can be raw materials such as vegetable oil, flour, tomatoes, and potatoes, where Orkla as a company is a major global purchaser and therefore has an increased responsibility for sustainable production.

On the next page you can get an overview of highrisk raw materials and certifications.

MINIMUM REQUIREMENTS FOR ALL SUPPLIERS

As a major global player, Orkla sets high standards to ensure that all our suppliers uphold and respect human rights, requiring all suppliers to sign our Supplier Code of Conduct.

Orkla’s Supplier Code of Conduct is based on the UN Declaration of Human Rights, the ETI Base Code, and the UN Global Compact’s 10 principles for responsible business conduct. It sets requirements for fair living wages, no child labor, no forced labor, a focus on workplace health and safety, freedom of association, no discrimination, and an emphasis on the environment, including hazardous substances, greenhouse gas emissions, biodiversity, and business ethics.

Read the Orkla Code of Conduct for suppliers via the QR code.

Our work with responsible value chains relates to the UN Sustainable Development Goals 2, 6, 8, 12, 13, 14, 15, and 17.

Certified raw materials now constitute just over half of total purchases

CERTIFICATION VIA SAI PLATFORM’S FRAMEWORKS

There are many certification frameworks that can be used to ensure the origin of raw materials and the supplier’s adherence to human rights and focus on preventing negative environmental impacts.

At Orkla, we use the SAI platform. The Sustainable Agriculture Initiative (SAI) is a globally recognized organization working to promote sustainable agricultural practices and production across the entire food value chain. The organization works to establish standards, tools, and guidelines to help companies integrate sustainability into their business practices.

One of the most well-known initiatives from the SAI platform is the Farm Sustainability Assessment (FSA), a tool for assessing the sustainability of farms. This tool allows farmers and food companies to evaluate and improve their practices in terms of environmental, social, and economic sustainability. Orkla uses the FSA tool and certification in its work to ensure sustainable raw materials. The goals and requirements of Orkla are set to ensure that certifications at a minimum match FSA “Silver-level,” which indicates a high level of sustainability.

HIGH RISK AND STRATEGIC RAW MATERIALS

Overall, 52% of Orkla Denmark’s raw material purchases* are certified. This includes both highrisk and strategic raw materials. Only eight percent of the total volume of purchased raw materials is considered high risk. Of these, only 22% are certified, as the largest proportion comes from pork, where there is a risk of poor animal welfare. It has not yet been commercially feasible for us to switch to certified meat.

However, we work closely with our supplier on both quality, responsibility, and climate.

CREATING DEMAND

We are exploring opportunities to create a value proposition for our customers with ‘Welfare Meat’ to influence customers to pay a little more for their products and thus ensure the certification of pork over time.

HIGH-RISK RAW MATERIALS CONSTITUTE ONLY 8% OF THE TOTAL

High-Risk Raw Materials

Strategically Prioritized Raw Materials

No-Risk Raw Materials

CERTIFICATION STATUS OF HIGH-RISK RAW MATERIALS

22% of the identified high-risk raw materials are certified. The largest share of non-certified raw materials is pork and dairy products, which together constitute 50% of high-risk raw materials.

Certified Raw Materials

Non-Certified Raw Materials

HIGH-RISK RAW MATERIALS WITH RISK OF DEFORESTATION HIGH-RISK RAW MATERIALS WITH ANIMAL WELFARE RISK

*The figures cover purchases of raw materials made locally by Orkla Denmark. The same approach is driven across the entire Orkla group, so purchases for intercompany production are not included in this report but are managed by the producing company.

Rainforest Alliance Certification helps ensure responsible cocoa sourcing

The cocoa industry is heavily represented in rainforest areas characterized by poverty, where human rights and labor rights are under pressure, and there is a high risk of cocoa production occurring under violations of these rights. Additionally, these geographical areas have a high risk of negative impacts on climate, the environment, and biodiversity.

By purchasing Rainforest Alliance certified cocoa and cocoa products, we help promote fair

compensation for local workers, ensure production without the use of child labor, and protect areas from deforestation.

Havrefras Kakao is an example of one of our products with Rainforest Alliance certified cocoa. Additionally, the product is also marked with the Keyhole and Whole Grain logos.

ESG key figures 2023

Orkla Foods Denmark A/S

Delta Park 45, 4th floor

2665 Vallensbæk Strand

CVR number: 56 54 83 19

www.orklafoods.dk

Phone: +45 43 58 93 00

QUESTIONS AND FEEDBACK

If you have comments or questions regarding this report or how we work with sustainability at Orkla Denmark, please contact:

Trine Rubæk Olsen, Head of Sustainability, Orkla Denmark, E-mail: trine.rubaek@orkla.dk

Orkla Confectionery & Snacks Denmark A/S

Sømarksvej 31

5471 Søndersø

CVR number: 15 23 38 77

www.orkla.dk/om-os/ orkla-confectionery-snacks

Phone: +45 63 89 12 12

ONLINE VERSION

Scan the QR-code to read the Sustainability Statement online.

The report should be sorted as paper, and the spiral binding as metal.