Climate Change Data

Environmental Metrics

ESG Focus Areas

• Promoting a healthy lifestyle
• Product safety and quality
• Sustainable use of resources

Environmental Achievements

• Business Area Denmark shifted to electricity production and 20,000 kWh of renewable electricity was produced through solar cells in 2017. In Denmark, all lighting was also switched to LED lamps in the warehouses, which provided savings of around 60,000 kW in 2017. Midsona’s warehouse in Örebro signed an agreement during the year with GodEl, which means that the operation is now run on 100 percent renewable energy.
• Source sorting and recycling now takes place at all of the Group’s offices and double-sided printing has been introduced as a standard. Midsona’s head office in Malmö has shifted to a supplier of sustainable office supplies. The move was completed of the Group’s Norwegian organisation into Oslo’s greenest office building – The Monier – which is certified according to BREEAM-NOR Very Good.

Social Achievements

• Developed and launched several new products with reduced sugar and increased fiber content (e.g., Dalblads Swebar).
• Implemented a whistle-blower policy.
• Developed a new policy for the organisational and social work environment, addressing work-related stress and workload.
• Offered various health promotion activities, including tobacco cessation treatment and discounted healthy products.
• Two of the Group’s brands (Urtekram and Kung Markatta) were highly ranked on the Sustainable Brand IndexTM.

Governance Achievements

• Developed a Group-wide Supplier Code of Conduct addressing human rights/labour law, business ethics and animal husbandry.
• Implemented a shared Nordic supply chain organisation to improve efficiency and sustainability.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact from freight transports.
• Implementing a common reporting procedure among Group companies for complete sustainability data.

Mitigation Strategies

• New supply chain organisation to streamline goods flows and allow for higher requirements on the supply chain.
• Eco-driving training for sales personnel, bicycle borrowing opportunities, and video conferencing to reduce travel needs.
• Ongoing work to implement a group-wide measurement structure for complete sustainability data reporting in 2018.

Supply Chain Management

Responsible Procurement

• Close relationships with suppliers and broad knowledge of health to ensure high quality.
• Supplier Code of Conduct addressing human rights/labour law, business ethics and animal husbandry (under development).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Certifications: KRAV, Fairtrade, Eco-cert, Nordic Swan Ecolabel, Vegan, Äkta vara

Third-party Assurance: Deloitte AB

Sustainable Products & Innovation

• New products with reduced sugar and increased fiber content

Environmental Metrics

ESG Focus Areas

• Sustainable brands
• Healthy work environment
• Responsible purchasing
• Safe products
• Efficient use of resources
• Efficient transports

Environmental Achievements

• Achieved a CDP rating of A-, ranking among the top 5.4% of reporting companies globally for climate change strategy and leadership.
• Received Supplier Engagement Leader (SEL) designation from CDP, placing in the top 8% of companies for climate work in the value chain.
• SBTi approved Midsona's emission reduction targets.
• Reduced total greenhouse gas emissions for Scopes 1 and 2 by 29% compared to the previous year.
• Increased the share of Biodynamic Federation Demeter-certified products for the Davert brand by 9%.

Social Achievements

• Launched Narcissa by Urtekram, a new vegan facial care product line.
• Donated a total of 37 tonnes of food to charity, a 57% increase from 2020.
• Implemented a web-based tool for a healthy lifestyle in Division Nordics to improve employee well-being.

Governance Achievements

• Certified as a “Nasdaq ESG Transparency Partner”.
• Maintained a Prime ESG rating from ISS.
• Implemented a new Group-wide set of instructions on GMOs, palm oil, fish oil, paper use, and animal welfare.

Climate Goals & Targets

Environmental Challenges

• Higher costs for input goods, energy, and transport negatively impacted margins.
• Challenging market conditions burdened profit for the year.
• Supply chain disruptions due to transport problems and raw material shortages.
• Poor harvests led to higher raw material prices and shortages.
• Lower demand for organic products as societies reopened.

Mitigation Strategies

• Introduced price increases for most goods.
• Implemented profitability-improving measures.
• Worked to improve the delivery chain.
• Increased production capacity at own facilities.
• Outsourced warehouse operations to streamline logistics.
• Offset some emissions through various initiatives.

Supply Chain Management

Supplier Audits: 10/year

Responsible Procurement

• Supplier Code of Conduct
• KODIAK supplier assessment system
• Sustainable procurement guidelines
• Focus on organic, GMO-free, RSPO-certified, and FoS-certified raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Raw material shortages
• Water scarcity

Transition Risks

• Increased carbon taxes
• Changing consumer preferences
• Stricter environmental regulations

Opportunities

• Increased demand for sustainable products
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, CDP, UN Global Compact, SBTi

Certifications: IFS, ISO 22716, WWF Green Office

Third-party Assurance: Deloitte AB

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 15 (Life on land)
• Goal 14 (Life below water)
• Goal 3 (Good health and well-being)
• Goal 17 (Partnerships for the goals)

Midsona's initiatives contribute to these goals through sustainable sourcing, reduced emissions, waste reduction, employee well-being, and community engagement.

Sustainable Products & Innovation

• Plant-based meat alternatives
• Vegan beauty products
• Products with reduced water consumption

Awards & Recognition

• CDP A- rating
• CDP Supplier Engagement Leader
• BIOFACH Best New Product Award

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Production bottlenecks in Division South
• Weak market in France

Mitigation Strategies

• Improved production efficiency in Spain
• Price management
• Improved production efficiency in Mariager and Tilst plants
• Discontinuation of low margin Private Label contracts (mainly Denmark)
• Discontinuation of low margin licensed brands
• Improved production efficiency in Ascheberg and Lauterhofen plants
• Improved distribution and new listings for brand Davert
• Better Private Label agreements
• Discontinuation of low margin food service customers
• Significantly improved production efficiency in Castellcir plant
• Improved sales for key brands

Supply Chain Management

Climate-Related Risks & Opportunities