Reporting prinicples and methodology

Transcription

1 Reporting prinicples and methodology Summary social and economic data principles Social and economic data are collected from our SAP HR system and the annual report which is audited according to standard international auditing practices. Please refer to the annual report for more information. Summary environment, health and safety data principles Environment, health and safety data is collected in the Environmental Performance Management (EPM) system, a web based application that is accessible for input by our global locations. In 2006, the EPM was implemented at all production sites to unify the data collection and validation process. Input of environment, health and safety data follows a work-flow where appointed editors at the site level enter monthly performance data which is approved by production or site management. Significant month-to-month variations are flagged in the system and are supported by clarification and necessary supporting documentation. A secondary validation occurs at corporate where existing flags are investigated with the sites directly. The frequency of secondary validation, generally depends on the performance indicator, but ranges from monthly for Performance Indicators (KPIs), and annually for other GRI. Third-party validation occurs on an annual basis and covers all GRI included in the Sustainability Report. Performance data and trends are available to our sites via the business warehouse reporting module and SAP Business Objects. Quarterly performance and progress toward targets is consolidated and displayed on the Danisco Intranet Portal (DIP). Performance Indicators are normalized using revenue (for example: water, energy, CO2). Other performance are normalized by kilogram of product. Due to the complexity in of our product portfolio, and the global reach of our operations, comparison between two quarterly periods might not be precise due to seasonal variations in ambient temperature, product demands, and production models. Specific economic data principles Financial data has been collected from our financial department as part of the consolidation of our annual performance. The figures will be published in our 2010/11 annual report. Revenue comprises invoiced sales less returned goods, bonuses and discounts granted in connection with sales. Sale of goods is recognized when the goods have been delivered and ownership and risks have been passed to the buyer. Government grants which are disclosed in a note, include grants for research, CO2 allowances and investments. Grants for research and development and CO2 allowances are recognized as income on a systematic basis to match the related cost. Investment grants are set off against the cost of the subsidised assets. Payments to governments includes any payment to governments to maintain the right to operate our business in the regions that we are located. Payments to government include all taxes and related penalties. Community investments includes the cost of donations and related engagements in the local community. Specific social data principles Includes data related to our employees and the communities that we operate in. Most data is collected from our SAP HR Management Module and covers all 6,890 employees globally, however some of the information is collected in surveys administered once per year. Gender diversity has been calculated for the entire Danisco employee population using our SAP HR Management data. Health and safety an injury or illness is considered work-related if an event or exposure in the work environment either caused or contributed to the 1 SUstainability report 2010/11 reporting principles / GRI Content Index

2 Reporting principles and methodology resulting condition, or aggravated a pre-existing condition. Work relatedness is presumed for injuries and illnesses resulting from events or exposures occurring at the employer s establishment. Work relatedness is not presumed for injuries and illnesses resulting from events or exposures outside of the employer s establishment; they are considered work related only if the worker is engaged in a work activity or is present as a condition of employment (travel to or from work is not included). Lost-Time Injuries (LTIs) are defined as those injuries resulting in at least one day away from work, counted as the next full workday following the incident. Severity is calculated as the number of lost working days/lti. Collective bargaining the percentage of employees under collective bargaining agreements is not calculated directly as it has been managed on a local site level. Instead we have used the % of employees not covered by our Short Term Incentive (STI) programme as it is an indicator of those employees that the collective agreement would not allow participation. The consolidation of these employees into the global STI system is driven from the site level to corporate. Employee turnover includes both voluntary and involuntary turnover as we are not able to differentiate between the two. We estimate that our voluntary turnover is roughly 5% during 2010/11 and is relatively unchanged from 2009/10 Specific environment data principles Definitions for environmental data follows pre-defined definitions based on international norms and standards. The definitions are standardized across the organization to all of our facilities with more than 50% ownership (excluding DuPont Danisco Cellulosic Ethanol LLC, USA and Gas Natural Caxitlán, S. de R.L. de C.V., Mexico). This includes all global manufacturing sites (including Anyang, China 54% ownership), and a number of our administrative and R&D sites (Copenhagen, Denmark, Palo Alto, California, Leiden, The Netherlands). Greenhouse gas (GHG) emissions includes all GHGs measured as CO2 equivalents based on: 1) supplier provided data, 2) empirically measured data, and 3) conversion factors for their 100-year Global Warming Potentials from the Intergovernmental Panel on Climate Change (IPCC), in order of preference. > Direct CO2e - Scope 1 includes fuels burned internally for heat and steam production, internal transportation (including company owned vehicles and forklifts. Does not include leased fleet vehicles), Kyoto gasses (CFC, NOx, methane, HFCs and PFCs Danisco does not use or emit SF6 or N20). > Indirect CO2e Scope 2 includes CO2e emissions from purchased electricity, steam and/ or heat. > Indirect CO2e Scope 3 includes empirically measured employee travel and goods transportation to customers. Use phase emission reductions, raw material transportation, retail impacts, etc. were estimated using Ecoinvent and Simapro. Direct energy consumption includes energy produced internally for electricity, heat and steam. Internal energy is produced in company owned equipment such as boilers and turbines and is measured in terms of fuel consumption in supplier invoices. The energy content of the burned fuels is either provided by the supplier or calculated using the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Indirect energy consumption includes all electricity, steam and heat produced by external providers and is measured at the entrance to the facility and provided in the invoice from the supplier. Renewable energy the definition of sources are found in the WRI/WBCSD Greenhouse Protocol and include Solar, wind, hydro electric, biogas, biomass, wood, biodiesel, bio-fuels. Non-renewable energy the definition of sources are found in the WRI/WBCSD Greenhouse Gas Protocol and include all fossil based fuels, nuclear, and geothermal. Water consumption includes all abstraction of water that does not return to the original source of abstraction. It does not include non-contact cooling water if it is not contaminated and returned to the same source. Water sources include rain, sea, fresh surface water, ground and municipal. 2 SUstainability report 2010/11 reporting principles / GRI Content Index

3 GRI/ content index Both and the GRI (Global Reporting Initiative) Guidelines cover a very similar scope of topics. The left column of this table lists GRI disclosure items, and the right columns list the topics and in where the content of those GRI disclosure items is mentioned. : Included Additional and not included profile Strategy and analysis CEO statement about the relevance of sustainability to the organization and its strategy of key impacts, risks and opportunities Organizational governance 6.2 8, 9 Organizational governance 6.2 5, 15, 30 Organisational profile 2.1 Name of the organization Primary brands, products and/or services. Operational structure of the organization 35, 83, 84 Organizational governance Location of organization s headquarters Countries where the organization operates Nature of ownership and legal form Markets served Scale of the reporting organization 84, 85, Report profile 3.1 Significant changes during the reporting period regarding size, structure or ownership Awards received in the reporting period Reporting period (e.g. financial/calendar year) for information provided 3, 8, 9, Date of most recent report (if any) Reporting cycle (annual, biennial etc.) Contact point for questions regarding the report or its contents sustainability@danisco.com 3 SUstainability report 2010/11 reporting principles / GRI Content Index

4 GRI/ content index profile Report scope and boundary 3.5 Process for defining the report content 15, 20, Boundary of the report Any specific limitations on the scope or boundary of the report Basis for reporting on joint ventures, subsidiaries, etc. Data measurement techniques and the bases of calculations Explanation of the effect of any re-statements of information provided in earlier reports Significant changes from previous reporting periods in the scope, boundary, or measurement methods GRI content index 3.12 Table identifying the location of the standard disclosures in the report Verification sustainability Assurance 3.13 Policy and current practice with regard to seeking external assurance for the report 15, 90, 92 Governance 4.1 Governance structure of the organization 4.2 Indication of whether the chair of the highest governance body is also an executive officer 4.3 The number of members of the board that are independent and/ or non-executive members 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the board 4.5 Linkage between compensation of board and management and the organization s performance - economic, social and environmental 4 SUstainability report 2010/11 reporting principles / GRI Content Index

5 GRI/ content index profile 4.6 Processes in place for the board to ensure conflicts of interest are avoided 4.7 Process for determining the qualifications and expertise of the board for guiding the organization s strategy on economic, environmental, and social topics 4.8 Internally developed statements of mission or values, codes of conduct and principles 75, 85, 4.9 Procedures of the highest governance body for overseeing the organization s identification and management of economic, environmental and social performance 4.10 Processes for evaluating the board s own performance Commitment to external initiatives Explanation of whether and how the precautionary approach or principle is addressed by the organization Externally developed economic, environmental and social charters, principles, or other initiatives Memberships in associations 88 Stakeholder engagement List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagements topics and concerns that have been raised through stakeholder engagement 12, , 14 5 SUstainability report 2010/11 reporting principles / GRI Content Index

6 GRI/ content index Economic performance Management approach Economic performance Organizational governance ECI Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments Wealth and income creation Social investment EC2 Financial implications and other risks and opportunities for the organization s activities due to climate change Climate change mitigation and action.5 16 EC3 Coverage of the organization s defined benefit plan obligations 74 EC4 Significant financial assistance received from government 86 Market presence EC5 Range of ratios of standard entry level wage compared to local minimum wage Conditions of work and social protection Policy, practices and proportion of spending on locally-based suppliers Promoting social responsibility in the value chain EC6 Employment creation and skills development , 32 Wealth and income creation EC7 Procedures for local hiring and proportion of senior management hired from the local community Employment creation and skills development , 71 Wealth and income creation SUstainability report 2010/11 reporting principles / GRI Content Index

7 GRI/ content index Indirect economic impacts Development and impact of infrastructure investments and services provided primarily for public benefit Economic, social and cultural rights EC8 Education and culture Employment creation and skills development , 79 Technology development and access Wealth and income creation Social investment Understanding and describing significant indirect financial impacts, including the extent of impacts. Economic, social and cultural rights Promoting social responsibility in the value chain Respect for property rights 6. Access to essential services.8 EC9 6.8 Employment creation and skills development Technology development and access Wealth and income creation Social investment Environmental performance Management approach Organizational governance , 38 Materials EN1 Materials used by weight or volume.4 51 EN2 Percentage of materials used that are recycled input materials.4 51 Energy EN3 Direct energy consumption by primary energy source.4 42 EN4 Indirect energy consumption by primary energy source SUstainability report 2010/11 reporting principles / GRI Content Index

8 GRI/ content index EN5 Energy saved due to conservation and effienciency improvements.4 41, 42 EN6 Initiatives to provide energyefficient or renewable energybased products and services and reductions in energy requirements as a result of these initiatives.4 26, 39, 60, 63 EN7 Initiatives to reduce indirect energy consumption and reduction achieved.4 39, 42, 44, 45 Water EN8 Total water withdrawal by source.4 46, 47 EN9 Water sources significantly affected by withdrawal of water.4 48, 49 EN10 Percentage and total volume of water recycled and reused.4 Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value Protection of the environment & biodiversity, and restoration of natural habitat.6 No operations on or near protected areas EN12 of significant impacts of activities, products and services on biodiversity Protection of the environment & biodiversity, and restoration of natural habitat.6 15, 30, 31 Habitats protected or restored EN13 Protection of the environment & biodiversity, and restoration of natural habitat.6 16, 30, 31, EN14 Strategies, current actions and future plans for managing impacts on biodiversity Protection of the environment & biodiversity, and restoration of natural habitat.6 16, 30, 31 EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risks Protection of the environment & biodiversity, and restoration of natural habitat.6 8 SUstainability report 2010/11 reporting principles / GRI Content Index

9 GRI/ content index Emissions, effluents, and waste EN16 Total direct and indirect greenhouse gas emissions by weight Climate change mitigation and action.5 43 EN17 Other relevant indirect greenhouse gas emissions by weight Climate change mitigation and action.5 43, 44 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Climate change mitigation and action.5 43, 44, 45 EN19 Emissions of ozone-depleting substances by weight Prevention of pollution.3 44 EN20 NOx, SOx and other significant air emissions by type and weight Prevention of pollution.3 Not material Insignificant emissions EN21 Total water discharge by quality and destination Prevention of pollution.3 50 EN22 Total weight of waste by type and disposal method Prevention of pollution.3 53 EN23 Total number and volume of significant spills Prevention of pollution.3 55 EN24 Weight of transported, imported, exported or treated waste deemed hazardous under the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally Prevention of pollution.3 EN25 Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation s discharges of water and runoff Protection of the environment & biodiversity, and restoration of natural habitat Products and services EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation Promoting social responsibility in the value chain , Sustainable consumption.5 9 SUstainability report 2010/11 reporting principles / GRI Content Index

10 GRI/ content index EN27 Percentage of products sold and their packaging materials that are reclaimed by category Sustainable consumption , 52 Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations 55 Transport EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation s operations and transporting members of the workforce Promoting social responsibility in the value chain , 38, 39 Overall EN30 Total environmental protection expenditures and investments by type. Responsibility performance Management approach Customer health and safety Organizational governance 6.2 Fair operating practices , 58 PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant product and service categories subject to such procedures Economic, social and cultural rights Promoting social responsibility in the value chain Protecting consumers health & safety Sustainable consumption , 55 PR2 Total number of incidents of noncompliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle by type of outcomes Economic, social and cultural rights Promoting social responsibility in the value chain Protecting consumers health & safety Sustainable consumption SUstainability report 2010/11 reporting principles / GRI Content Index

11 GRI/ content index Product and service labelling PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements Fair marketing, factual and unbiased information and fair contractual practices Protecting consumers health & safety Sustainable consumption Consumer service, support and complaint and dispute resolution Education and awareness PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling by type of outcomes Fair marketing, factual and unbiased information and fair contractual practices Protecting consumers health & safety Sustainable consumption Consumer service, support and complaint and dispute resolution Education and awareness PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction Protecting consumers health & safety Sustainable consumption Consumer service, support and complaint and dispute resolution Access to essential services Education and awareness Marketing communication PR6 Programmes for adherence to laws, standards and voluntary codes related to marketing communications, including advertising, promotion and sponsorship Fair marketing, factual and unbiased information and fair contractual practices Consumer service, support and complaint and dispute resolution , 18, 55 Education and awareness.9 11 SUstainability report 2010/11 reporting principles / GRI Content Index

12 GRI/ content index PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes Fair marketing, factual and unbiased information and fair contractual practices Consumer service, support and complaint and dispute resolution.3.6 Education and awareness.9 Consumer privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Consumer data protection and privacy.7 Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services Consumer service, support and complaint and dispute resolution.6 55 and decent work performance Management approach Organizational governance Fundamental principles and rights at work Employment LA1 Total workforce by employment type, employment contract and region, broken down by gender LA2 Total number and rate of new employee hires and employee turnover by age group, gender and region.3 71 LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Conditions of work and social protection LA15 Return to work and retention rates after parental leave, by gender Data not available (GRI 3.1 indicator) 12 SUstainability report 2010/11 reporting principles / GRI Content Index

13 GRI/ content index Labour / management relations LA4 Percentage of employees covered by collective bargaining agreements Conditions of work and social protection Social dialogue Fundamental principles and rights at work LA5 Minimum notice period(s) for significant operational changes, including whether it is specified in collective agreements Conditions of work and social protection Social dialogue.5 Occupational health and safety LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes Health and safety at work.6 76 LA7 Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region Health and safety at work.6 76 LA8 Education, training, counselling, prevention and risk-control programmes in place to assist workforce members, their families or community members regarding serious diseases Health and safety at work Education and culture Health LA9 Health and safety topics covered in formal agreements with trade unions Health and safety at work.6 Training and education LA10 Average hours of training per year per employee by employee category Human development and training in the workplace.7 72, SUstainability report 2010/11 reporting principles / GRI Content Index

14 GRI/ content index LA11 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Human development and training in the workplace Employment creation and skills development , 75 LA12 Percentage of employees receiving regular performance and career development reviews Human development and training in the workplace.7 24, 72 Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other of diversity Discrimination and vulnerable groups Fundamental principles and rights at work , 71, LA14 Ratio of basic salary of men to women by employee category Discrimination and vulnerable groups Fundamental principles and rights at work Conditions of work and social protection , 74 performance Management approach Organizational governance , 75 Investment and procurement practices HR1 Percentage and total number of significant investment agreements that include human rights or that have undergone human rights screening Due diligence Avoidance of complicity , 86 Promoting social responsibility in the value chain HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken Due diligence Avoidance of complicity , 32 Promoting social responsibility in the value chain SUstainability report 2010/11 reporting principles / GRI Content Index

15 GRI/ content index HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained Avoidance of complicity.5 72, 75 Non-discrimination Total number of incidents of discrimination and actions taken Resolving grievances.6 HR4 Discrimination and vulnerable groups Fundamental principles and rights at work Freedom of association and collective bargaining Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights Due diligence risk situations Avoidance of complicity HR5 Civil and political rights Fundamental principles and rights at work Social dialogue.5 Child labour HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of child labour Due diligence risk situations Avoidance of complicity Discrimination and vulnerable groups Fundamental principles and rights at work , 31, SUstainability report 2010/11 reporting principles / GRI Content Index

16 GRI/ content index Forced and compulsory labour HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour Due diligence risk situations Avoidance of complicity Discrimination and vulnerable groups Fundamental principles and rights at work , 31, 75 Security practices HR8 Percentage of security personnel trained in the organization s policies or procedures concerning aspects of human rights that are relevant to operations Avoidance of complicity.5.3 Promoting social responsibility in the value chain Indigenous rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken Resolving grievances Discrimination and vulnerable groups Civil an political rights Respect for property rights Assessments HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments 75 Remediation HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms SUstainability report 2010/11 reporting principles / GRI Content Index

17 GRI/ content index Society performance Management approach Organizational governance Fair operating practices , 79, 88 Local communities SO1 SO9 SO10 Percentage of operations with implemented local community engagement, impact assessments, programs Operations with significant potential or actual negative impacts on local communities Economic, social and cultural rights Employment creation and skills development Wealth and income creation Respect for property rights * 6. Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities 19 14, Corruption SO2 Percentage and total number of business units analyzed for risks related to corruption Fair operating practices Anti-corruption SO3 Percentage of employees trained in organization s anti-corruption policies and procedures Fair operating practices Anti-corruption SO4 Actions taken in response to incidents of corruption Fair operating practices Anti-corruption Public policy SO5 Public policy positions and participation in public policy development and lobbying Fair operating practices Responsible political involvement SO6 Total value of financial and inkind contributions to political parties, politicians and related institutions by country Fair operating practices Responsible political involvement , SUstainability report 2010/11 reporting principles / GRI Content Index

18 GRI/ content index Anti-competitive behaviour SO7 Total number of legal actions for anticompetitive behaviour, anti-trust and monopoly practices and their outcomes Fair operating practices Fair competition Respect for property rights Compliance SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Fair operating practices Respect for property rights Wealth and income creation * SUstainability report 2010/11 reporting principles / GRI Content Index