Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Sourcing
• Sustainable Production
• Sustainable Products
• Human Rights
• Employee Well-being

Environmental Achievements

• Investing more than EUR 250 million in the next five years to achieve climate-neutral production by 2050.
• Aiming to halve direct CO2 emissions by 2030 (compared to 2017-2019 average).
• Aiming to halve energy consumption per tonne of sugar produced by 2045.
• Utilizing all parts of the beet, creating a circular economy (animal feed, molasses, fertilizer).
• Reducing CO2 emissions by 30% in Opalenica factory through continuous crystallization process.
• Saving about 8 tonnes of water per 100 tonnes of beet in Uelzen plant with a new extraction tower.
• Reducing energy consumption by 7-10% in Nordstemmen plant by upgrading steam.

Social Achievements

• Launched individually designed compensation payments to employees in all countries due to high inflation.
• Implemented the Leadership & Culture project to improve cooperation, transparency, and employee involvement.
• Launched the Smart Beet Initiative to support growers with sustainable beet cultivation.
• Established the “School meets Business” network to attract young talent.
• Launched Trainee Talks to highlight career opportunities in the region.

Governance Achievements

• Regularly evaluating suppliers on quality, innovation, and sustainability criteria.
• Implementing the Supplier Sustainability Engagement Program.
• Preparing for the Supply Chain Due Diligence Act.
• Optimizing the Group’s Compliance Management System (CMS).

Climate Goals & Targets

Environmental Challenges

• Energy crisis and inflation.
• Supply chain disruptions.
• Lower sugar yields due to dry weather conditions.
• Shortage of specialists.
• High inflation directly affecting people’s lives.
• Lack of specialists in attracting young talent.
• Rising prices for packaging materials.
• Extreme weather events posing risks to cultivation.
• EU’s Farm to Fork strategy requiring reduction in plant protection products and fertilizers.
• Potential uncertainty about the supply of natural gas.
• Shortages and extreme price increases for various materials.
• Extreme weather conditions (frost and thawing) affecting beet processing.
• Risk of viral yellowing in countries where neonicotinoid seed treatments are banned.

Mitigation Strategies

• Equipped plants to use various energy sources to prevent gas shortages.
• Safeguarded sugar beet procurement and defined new procurement avenues.
• Made individually designed compensation payments to employees.
• Launched the Leadership & Culture project.
• Launched the Smart Beet Initiative.
• Established the “School meets Business” network and Trainee Talks.
• Regularly evaluating suppliers on sustainability criteria.
• Implementing the Supplier Sustainability Engagement Program.
• Preparing for the Supply Chain Due Diligence Act.
• Converting plants to bivalent operation to reduce gas dependency.
• Intensifying cooperation with specialist departments to secure key materials.
• Diversifying sources of supply.
• Finding other uses for beets affected by frost (biogas plants).
• Compensating growers for beets affected by frost.
• Hedging transactions to mitigate price risks for energy and raw materials.

Supply Chain Management

Supplier Audits: 250 key suppliers assessed on sustainability performance.

Responsible Procurement

• Supplier Code of Conduct.
• Sustainability criteria in supplier selection.
• Preparing for the Supply Chain Due Diligence Act.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, frost).

Transition Risks

• Regulatory changes (e.g., EU Green Deal).
• Changes in agricultural policy and pesticide approvals.

Opportunities

• Development of renewable energy sources (biogas from beet pulp).

Reporting Standards

Frameworks Used: Science Based Targets initiative, UN Guiding Principles on Business and Human Rights, Sustainable Agriculture Initiative Platform (SAI)

Certifications: EMAS III, DIN EN ISO 14001, DIN EN ISO 50001, FSSC 22000, IFS Food, GMP+, ISO 45001, ISO 50001, SMETA

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Biogas from beet pulp.
• Carbolime fertilizer.

Awards & Recognition

• Magdeburg Chamber of Commerce and Industry’s education prize (2021).

Environmental Metrics

ESG Focus Areas

• Sustainability
• Excellence
• Growth

Environmental Achievements

• Investing over €300 million in the GoGreen program over the next five years to achieve carbon-neutral production by 2050.
• Switching to 100% green electricity in Europe in 2024.
• Reduced carbon footprint from the field to the Nordzucker plant by up to 25% through the use of low-carbon fertilizers.
• Saved 6.5 tonnes of plastic film by switching to paper-only packaging for icing sugar.

Social Achievements

• Launched a new HR strategy focusing on creating an attractive working environment, a more digitized organization, and staff development.
• Developed a Safety & Health Roadmap aiming for zero workplace accidents.
• Created approximately 60 new jobs with the new Plant Based Ingredients (PBI) business area.

Governance Achievements

• Implemented a new system to help implement the Supply Chain Due Diligence Act.
• Adapted the Supplier Code of Conduct and revised the Nordzucker Code of Conduct.
• Established a Group-wide “SpeakUp” whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Volatile sugar market with signs of price decline due to increasing production capacities in the EU and imports from Ukraine.
• High rainfall and flooding during the beet harvest causing delays and losses.
• Explosion at the Swedish plant in Örtofta.
• New bacterial diseases affecting beet yields and sugar content.
• Securing raw materials due to competition with other arable crops and potential shifts to other farming practices.
• High price volatility of energy sources.
• Challenges in procuring enzymes due to lower sugar beet quality.
• Supply chain disruptions due to the war in Ukraine and the impact of the conflict in the Middle East.
• Shortages of electronic and control components for equipment upgrades.
• Lack of skilled employees and increase in wages for tradespeople.

Mitigation Strategies

• Investing in measured and prudent investments.
• Close cooperation with growers to develop sustainable solutions.
• Hedging transactions to mitigate energy price risks.
• Diversifying sources of supply for critical goods and services.
• Intensifying cooperation with specialist departments to optimize procurement processes.
• Supplier Sustainability Engagement Programme to improve sustainability practices.
• Close interdisciplinary coordination to limit risks from weather and soil conditions.
• Quickly resuming campaign operations after the Örtofta explosion.
• Researching the biology, spread and treatment of new bacterial diseases.
• Smart Beet Initiative to introduce new cultivation techniques and secure cultivation in Europe.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Sustainability Engagement Programme
• Ethical sourcing of plant-based ingredients

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, frost, flooding)

Transition Risks

• Regulatory changes
• Market shifts
• Increased sugar imports into the EU

Opportunities

• Development of energy-efficient products
• Use of renewable energy sources (biogas from beet pulp)

Reporting Standards

Frameworks Used: Science Based Targets initiative

Certifications: EMAS III, DIN EN ISO 14001, DIN EN ISO 50001, FSSC 22000, SAI Gold Level (target by 2030)

Third-party Assurance: EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Plant-based proteins from yellow peas