Scope 1 Emissions
2022 Communication on Progress
Nordzucker AG
Published date
June 24, 2022
No. of questions
62
Supplemental files
NZ_Sustainability Flyer AnnualReport_221021.pdfHuman-Rights-Policy-EN.pdfCode_of_Conduct_EN.pdfNZ-1.2-P-07 Policy on child labour and child labour remediation.pdfSupplier_Code_of_Conduct_EN.pdfHuman-Rights-Policy-EN.pdfNZ-1.2-P-05-Nordzucker-Policy-Health-Safety-EN.pdfCode_of_Conduct_EN.pdfNZ-1.2.-P-03-Nordzucker-Energy-Environmental-Policy-EN.pdfSupplier_Code_of_Conduct_EN.pdfCode_of_Conduct_EN.pdfNZ-1.3.13-G Compliance Anti-Corruption (2).pdfNZ-1.3.13-G Leaflet Compliance Anti-Corruption- A summary of key corruption issues and how to deal with them - ENG (1).pdfNZ-1.3.13-G Leaflet Compliance Anti-Corruption- A summary of key corruption issues and how to deal with them - ENG (1).pdfCEO Statement
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
Optional commentAssessing risks is part of our human rights due diligence. We have a HRDD in place, however the main focus is own operations and direct suppliers.6.1. During the assessment of risk, which business relationships are reviewed?
Optional commentWe aim to scale our HRDD to cover all of our direct suppliers but until then, we focus on our key direct suppliers where we also have a stronger leverage.7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Optional commentSee the Human Rights Policy for description of our Human Rights Due Diligence. We follow the UNGP and OECD Guidelines, although the focus now is on own operations and direct suppliers.7.1. During the due diligence process, which business relationships are reviewed?
Optional commentWe aim to scale our HRDD to cover all of our direct suppliers but until then, we focus on our key direct suppliers where we also have a stronger leverage.Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentPlease see our whistleblower platform - SpeakUp! - where all stakeholders can raise any issues, including doing so while remaining anonymous. https://www.bkms-system.net/bkwebanon/report/clientInfo?cin=14nor18&c=-1&language=eng8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
Optional commentPlease follow the link for SpeakUp! and the details: https://www.bkms-system.net/bkwebanon/report/clientInfo?cin=14nor18&c=-1&language=eng9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentExecutive pay in the future linked to a number of sustainability related KPIs - but are unsure about which exactly (besides environment).Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Optional commentThe CSRD will apply to us from 2024 and we are currently preparing for this. Aligned with NFRD in the Nordics.Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Optional commentThis question is bugging for us and we are not able to select all of our salient human rights issues. Please see the NZ Human Rights Policy for the salient issues we have identified or see here: Occupational health and safety, • Forced labour and modern slavery, • Child labour, • Working conditions and discrimination, • Right to association, • Land rights, • Water contamination and contribution to climate change.Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
We undertake r human rights due diligence to identify, prevent and mitigate human rights risks. The above-identified salient human rights are a focus of our Country Risk Assessments that are conducted prior to taking up any new activities in countries where Nordzucker has no previous experience in and reviewed periodically, especially in countries that have been identified as high risk or medium risk. We further evaluate our direct business partners, particularly in emerging markets, through Suppliers Desktop Questionnaires and undertake audits of our most risky suppliers. As a minimum, Nordzucker always audit key suppliers from regions where we do not have prior experience, and where repeated business is intended. Where we identify that they have caused or directly contributed to adverse human rights impacts, we will engage in appropriate remediation processes by ourselves or in cooperation with other stakeholders. The biggest challenges we currently face is to scale our HRDD across the whole direct supplier base, ensure that reported practice by supplier is truthful and provide meaningful engagement with suppliers to improve capacities on sustainability topics.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentPlease note that we have a human rights policy which coveres all topics above (which are also identified salient human rights issues for us). Moreover, all topics above are also part of our Supplier Code of Conduct and Code of Conduct.1.1. For each labour rights policy, is it:
Optional commenttechnical comment - lot of issues ticking the boxes (keeps bugging up and "ticks" keep disappearing)Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
7. What is the percentage of employees in a trade union or other workers' organization?
Optional commentWe do not have the ability to provide exact numbers on the Group level of who is in or not in a Trade Union – we would potentially breach national legislations if we were to ask each individual if they were in a Trade Union.8. In the course of the reporting period, what was the percentage of women in:
Optional comment21.7% = Percentage of women employed in relation to the whole organization9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentKPI: Lost time injury (LTI) frequency rate for direct workforce - (total number of lost time injury events) x 1,000,000 / total hours worked company wide11. In the course of the reporting period, what was the company’s incident rate?
Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Nordzucker is committed to developing an organizational culture and a general conduct of respect and support for internationally recognized human right and labor rights and seeks to avoid complicity in any human rights and labor rights abuse through its activities and business relationships. We support the principles contained within the UN Guiding Principles on Business and Human Rights, the OECD Guidelines and the UN Global Compact. Additionally, all of our sites are Sedex SMETA audited on periodic basic. We are now working on expending the scope of our human rights due diligence, which also includes labor rights. Furthermore, we are in the process of updating our Code of Conduct to emphasis stronger language around the protection of labor rights principles. Challenges we see predominantly lie within our supply chain, around the questions of how to ensure broader reach and better transparency. In direct operations, main challenges regarding labor rights lie within the area of safety and health, and continuing to embedded safety culture practices across the organization.Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
1.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Optional commentWe are committed to the Science Based Target initiative and report through CDP since 2010. We are also one of the key members of the SAI FSA and the recent SAI Regenerative Agriculture project.Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentThe reason why we reported our water consumption as 0 is because Nordzucker is a net water producer. We discharge more water than we consume as we utilize the water from the beet in our production. The beet is made of up to 75% of water, which is extracted and used in our production. The wastewater is then sent to water treatment processes before discharge back to the nature. In 2021, our treated wastewater discharge was 11.331 megaliters. Please note that under water withdrawal, surface water is both water from municipal sources (1082 megaliters) and rivers, lakes, wetlands and oceans (2560 megaliters).13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Forest, biodiversity, and land use
14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).
Optional commentWe do not own, leas or manage land in protected and /or key biodiversity areas (KBA).15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?
Optional commentWe do not own, leased or manage any natural ecosystems outside of factory premises.16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?
Optional commentWe are part of the SAI Regenerative Agriculture work group. Furthermore, we invest in our own agricultural research focusing on pesticide reduction and biodiversity projects (such as flower strips), and develop farmer decision making support tools (such as an app for farmers).Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
We have set ourselves ambitious targets for the reduction of our carbon emissions through our Science Based Targets initiative (SBTi). We want to reduce our emissions by 50 per cent by 2030 as compared with 2018 levels. This reflects the target set out in the Paris Agreement to avoid global warming exceeding 1.5°C. We are working under the assumption that our targets will be confirmed by the SBTi in 2022. Largest challenges we face at the moment is switching to less emission intensive fuels and renewable fuels, mainly due to Ukraine war as well as the questions surrounding the usability of biomass.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
Optional commentAs of 2021, we have a new Anti-corruption and Compliance Officer. We have published a new Anti-Corruption Guideline which provides very practical processes of how to avoid and proceed when dealing with sensitive transactions that could lead to fraud, bribery, corruption or other unethical behavior.2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Prevention
3. Who receives training on anti-corruption and integrity?
Optional commentAll employees receive Code of Conduct training, which anti-corruption and integrity (and other Business Ethics) are also part of. Selected employees (white collars mainly) then receive a more detailed training.3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
Over the course of last year, we have taken several steps to strengthen our anti-corruption efforts. We know have a dedicated Anti-corruption and Compliance officer, and have published new comprehensive Anti-corruption Guidelines and Anti-corruption leaflet for employees. We have also provided and undertook trainings on the topic of Business Ethics. Moreover, we have a dedicated ethics committee, which ensures compliance with our values and investigates individual cases where necessary. One of our goals is to establish a network of value ambassadors at all of our sites, who will serve as an interface with our employees.