Climate Change Data

Environmental Metrics

ESG Focus Areas

• Nutrition and wellness
• Safe products
• Sustainable sourcing
• Environmental engagement
• Care for people and society

Environmental Achievements

• Achieved 2014-2020 greenhouse gas emission reduction target early.
• Implemented Guarantees of Origin (GOs) for renewable electricity across European locations.

Social Achievements

• Revised human rights policy and implemented new due diligence procedures.
• Strengthened efforts in competence development, occupational health and safety, and anti-corruption.
• Increased percentage of women in management positions.

Governance Achievements

• Strengthened risk management procedures.
• Improved procedures for risk assessment and control regarding workers’ rights, anti-corruption, data protection, and data security.

Climate Goals & Targets

Environmental Challenges

• Higher raw material prices.
• Fluctuations in currency rates.
• Increased greenhouse gas emissions due to high activity and acquisitions.
• Food safety risks.
• Supply chain disruptions (e.g., fipronil contamination in egg yolk powder).

Mitigation Strategies

• Close follow-up of suppliers and prices to customers.
• Sourcing in local currencies to reduce currency risk.
• Setting ambitious new targets for reducing greenhouse gas emissions (60% by 2025).
• Implementing the Orkla Food Safety Standard (OFSS).
• Product recalls when necessary (e.g., Idun dressings).

Supply Chain Management

Supplier Audits: 79 factory audits in 2017

Responsible Procurement

• Supplier Code of Conduct
• Supplier monitoring system
• Risk screening of suppliers
• Collaboration with suppliers on sustainability improvements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in consumer preferences
• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: Null

Third-party Assurance: CO2focus (for emissions, energy, and water consumption)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Orkla's sustainability initiatives contribute to these goals through various programs and actions.

Sustainable Products & Innovation

• Klar cleaning products
• Pierre Robert wool garments
• Felix Asia Bowls with climate-smart packaging
• Anamma vegan products

Awards & Recognition

• Included in Dow Jones European Sustainability Index for the seventh consecutive year.
• Included in Corporate Knights Global 100 index for the first time.

Environmental Metrics

ESG Focus Areas

• Sustainable growth
• Transition to low-carbon operations
• Sustainable raw materials
• Healthier products
• Circular packaging value chains
• Diversity and gender balance

Environmental Achievements

• 62 per cent reduction in greenhouse gas emissions (Scope 1 and 2) from 2014-2020
• 47 per cent of Orkla’s energy use came from renewable sources in 2020
• 95 per cent of Orkla’s packaging was recyclable in 2020
• 47 per cent of Orkla’s packaging was based on recycled materials in 2020
• Reduced sugar by 2234 tonnes and salt by 168 tonnes in 2020 compared to the previous year

Social Achievements

• Increased the number of women at senior executive level from 35.5 per cent in 2019 to 35.9 per cent in 2020
• Launched several new healthy, vegetarian and organic food products in 2020
• Contributed NOK 46.9 million in support for various types of socially beneficial projects in 2020

Governance Achievements

• Established the Orkla Sustainability Committee in 2020 to coordinate sustainability work
• Reviewed roles and responsibilities in its sustainability work in 2020
• Established country-based sustainability networks in Norway, Sweden and Denmark in 2020

Climate Goals & Targets

Environmental Challenges

• Extreme weather impacting agricultural raw material production and energy prices
• Challenges in achieving full certification of sustainable raw materials
• Complexity in monitoring suppliers and ensuring responsible business practices across a large supply chain
• Limited availability of recycled materials that meet food safety requirements
• Insufficiently advanced local waste systems and recycling technologies

Mitigation Strategies

• Developed a new framework for sustainable agricultural products and new guidelines for animal welfare
• Improved calculation models and data quality relating to the raw material chain (Scope 3)
• Adopted a risk-based approach to fostering responsible business practices in the supplier chain
• Increased cooperation with key suppliers, specialist communities, and other companies to find innovative solutions
• Engaged in transnational efforts to encourage the development of better recycling systems

Supply Chain Management

Supplier Audits: 119 supplier audits in 2020

Responsible Procurement

• Risk-based approach, supplier monitoring, reporting, Orkla Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, drought

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Growth potential in consumers’ interest in climate-friendly diet and sustainable consumption

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: Null

Third-party Assurance: EY

UN Sustainable Development Goals

• SDG 2, SDG 3, SDG 8, SDG 12, SDG 13, SDG 14, SDG 15, SDG 17

Orkla's initiatives contribute to these goals through sustainable production and consumption, healthier products, responsible sourcing, and community engagement.

Sustainable Products & Innovation

• Plant-based foods, seaweed-based products, recycled packaging, eco-labelled products

Awards & Recognition

• A score for CDP reporting on climate work

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable sourcing
• Nutrition and health
• Human rights
• Diversity & Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions from own operations by 40% (Scopes 1+2) compared to 2016 baseline.
• 96% of packaging materials were recyclable in 2022.
• 70% of packaging materials were recycled or renewable in 2022.
• 14% of plastic packaging materials were recycled or renewable in 2022.

Social Achievements

• Launched an academy for sustainability implemented in Orkla Foods Europe and Orkla India.
• Launched a global development program on diversity, equality, and inclusion.
• Donated around NOK 70 million in support for various socially beneficial projects in 2022.
• Increased the percentage of employees who had a performance appraisal interview.

Governance Achievements

• Transformation into a leading industrial investment company with twelve autonomous portfolio companies.
• Updated Supplier Code of Conduct with strengthened requirements.
• Implemented a new digital supplier portal for better supplier follow-up and risk monitoring.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and climate-related events.
• High inflation impacting consumer purchasing power and demand for sustainable products.
• Limited availability of recycled materials meeting food safety requirements.
• Insufficiently developed external infrastructure for sorting and recovering packaging waste.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented cost improvement programs (increased by over 40% from original targets).
• Increased focus on innovation, product development, and concepts designed to meet consumer needs with lower purchasing power.
• Collaboration with packaging suppliers, waste management sector, and other players in the packaging value chain to develop recyclable packaging.

Supply Chain Management

Supplier Audits: 172 supplier audits in 2022

Responsible Procurement

• Orkla Supplier Code of Conduct (SCoC)
• Risk-based approach to strengthening responsible business practices
• Annual risk screening of suppliers
• Use of Sedex methodology for detailed risk assessment of high-risk suppliers
• Use of third-party certification standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting raw material supply and price
• Drought and flooding
• Reduced availability of fish species

Transition Risks

• Changes in regulatory environment
• Unpredictable energy prices

Opportunities

• Development of energy-efficient products
• Growth in plant-based food products

Reporting Standards

Frameworks Used: GRI Standards, World Economic Forum’s Common Metrics

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Ernst & Young AS (limited assurance on climate and environmental reporting)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 5
• SDG 6
• SDG 8
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Orkla's sustainability work contributes to these goals through initiatives related to food production, health, gender equality, water management, decent work, responsible consumption and production, climate action, life below water, life on land, and partnerships.

Sustainable Products & Innovation

• Klar
• Jordan Green Clean
• Naturli’
• Frankful
• Kalles Vegan caviar
• Jordan Change toothbrushes
• OMO and Blenda carton packaging
• MTR’s 3 Minute Breakfast
• Grandiosa Delux
• Smash! chocolate tablet
• NATURLI’® Ice Dream

Awards & Recognition

• A– (leadership level) in CDP’s climate and water scores
• B (management level) for deforestation prevention in CDP Forests
• Silver in the category “Best Advance in Leadership Development” at the Brandon Hall Excellence Awards for Orkla Leadership Compass
• Green Fashion Label of the Year at the 2022 Costume Awards (Pierre Robert Group)

Environmental Metrics

ESG Focus Areas

• Net Zero Emissions
• Sustainable Production and Consumption
• Responsible Business Practices
• Gender Balance
• Diversity and Inclusion
• Human Rights
• Consumer Health

Environmental Achievements

• 62% reduction in greenhouse gas emissions from own operations
• 97% recyclable packaging materials
• 54% packaging from recycled materials

Social Achievements

• 40% women in management teams

Governance Achievements

• Developed and published a Net Zero Roadmap
• Established new, long-term sustainability ambitions

Climate Goals & Targets

Environmental Challenges

• Weaker economic development affecting consumer behavior and sales volumes
• Risk of consumers opting for retailers' own products
• High risk of channel distortion in the grocery sector
• High customer concentration in the grocery sector increasing price pressure
• High risk of cyberattacks
• Risks related to production volumes and cost levels at Orkla Confectionery & Snacks' new biscuit factory
• Macroeconomic and geopolitical conditions impacting interest rates, exchange rates, and global goods flow
• Prices and access to inputs
• Climate change affecting input prices and production stability
• Regulatory conditions, particularly in ESG

Mitigation Strategies

• Consistent focus on cost improvement measures and brand-building
• Maintaining close dialogue with customers and safeguarding long-term relationships
• Growth in other sales channels
• Updating governance models for cybersecurity
• Close monitoring of the situation at the new biscuit factory
• Flexible product portfolios and recipes to switch raw material suppliers and origins
• Collaboration with suppliers to diversify purchases and use third-party certification programs
• Developing more sustainable market solutions and ensuring compliance with environmental and emission and discharge requirements
• Preparing restructuring plans at both owner and company level to achieve net zero emissions by 2045
• Developing products, packaging, and solutions which minimize environmental impact

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers to diversify purchases and use third-party certification programs
• Focus on sustainable raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting raw material availability and prices

Transition Risks

• Increased carbon pricing and other taxes

Opportunities

• Development of energy-efficient products
• Development of climate-resilient production systems

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Reduced salt, sugar, and saturated fat in foods
• Healthy products
• Renewable and recycled packaging
• Sustainable raw materials