Through Orkla's Goals and Values, environment, health and safety (EHS) have been established as an important value driver.
Targeted EHS activities are necessary in order to achieve safe, effective operations, and continuous work is being done to ensure recognition of the importance of EHS in all parts of the organisation. All Orkla employees must strive to achieve the goal of zero harm in Orkla companies.
A safe working environment for employees, contract staff and suppliers is a fundamental prerequisite for sustainable value creation. Orkla is committed to operating in accordance with the principles enshrined in the UN Global Compact. The Orkla Group must conduct itself with respect and responsibility for people, society and the environment in all areas and in all parts of the world.
Orkla operates in very different sectors, using different production methods and in different cultures. This entails a variety of challenges and EHS risks, but also opportunities. Work on EHS primarily takes place at the local level in individual companies, but benchmarking and learning throughout the organisation are important. Consequently, a corporate staff function was established in 2008 to promote network-building and focus within the Group.
Orkla will develop a strong EHS culture by encouraging correct behaviour and attitudes. This requires stronger focus and commitment, good planning, and willingness to learn and improve.
Risk assessments are a key element of EHS activities. Orkla companies must identify factors that can have significant consequences for people, the environment and the Group, and promote focus on continuous improvement. An EHS risk picture and the ten most important risk factors, with associated measures to mitigate risk, must be reported each year for each unit.
Despite the strong focus on preventing occupational accidents, there were unfortunately serious incidents in Orkla in 2008. The most serious one was a car accident in which a sales representative in Latvia was killed while driving on business.
In 2008 the Lost Work Day Rate (LWDR) was 6.2 injuries leading to absence per million hours worked, compared with 7.2 in 2007. This result is still unsatisfactory, but it shows the importance of increased focus and that even greater emphasis on behaviour is necessary if Orkla is to succeed in achieving its vision of zero injuries.
Sickness absence in the Orkla Group was 3.4 % in 2008, while the corresponding figure for 2007 was 4.2 %. The rules for registering sickness absence and
follow-up vary from one country to another. In Norway, Orkla complies with the principles of an inclusive work environment with active
follow-up of absentees and cooperation with the company health service. Similar principles will also be applied in the rest of the Group and in other parts of the world. Sickness absence for the Norwegian companies was 5.7 %, which is an improvement compared with 6.5 % in 2007.
Regular employee surveys are carried out in order to identify potential for improvements in the working environment.
In June 2008 a new outbreak of Legionnaire's Disease was reported in the Sarpsborg area. Five people were infected and two of them died. Traces of legionella bacteria were found at one of Borregaard's installations. Based on the precautionary principle, measures were implemented that included closure of the plant concerned, while studies and an extensive risk assessment were carried out to clarify the situation.
Apart from this, there were no reports of serious emissions or pollution from Orkla's factories in 2008.
Orkla acknowledges the effect of its activities on the environment and makes efforts to limit the environmental impacts of its operations. All the environmental requirements laid down by authorities and local communities must be complied with. The Group's main environmental impacts are related to the use of energy and resources, waste management, local pollution, greenhouse gas emissions and transport.
Orkla believes it is important to take responsibility for limiting environmental impacts throughout the value chain. Consequently, it carries out life cycle assessments to identify the impacts of various products and production systems on the environment and the climate.
Greenhouse gas emissions from Orkla companies amounted to 2.25 million tonnes of
CO2-equivalents in 2008, 18 % lower than in 2007. This figure is affected by the fact that, following the exchange agreement with Alcoa, Elkem Aluminium is no longer reported in the financial statements as continuing operations. Emissions of greenhouse gases from Orkla's activities are primarily a consequence of Elkem's production. As a result of continuous focus on process and operational improvements, emissions of CO
2 and other greenhouse gases are approaching a minimum level. Emissions from Sapa's and Borregaard's factories and from Orkla's other operations are mainly linked to the production of thermal energy from fossil fuels.
Competence and
know-how are used to improve and develop processes, production and products in order to reduce or limit their impact on the environment. Substantial resources were devoted also in 2008 to increase understanding of the challenges to the climate, and how this affects Orkla, through necessary measures and possibilities. Through its involvement in the solar energy companies Elkem Solar and REC, Orkla is contributing to the development of alternative energy sources with minimal impact on the climate. Other products, such as aluminium, lignin and Microsilica®, can also lead to lower energy consumption and thereby reduced greenhouse gas emissions.
Orkla is dependent on energy and total consumption in 2008 was 11.1 TWh, around 5.8 TWh of which was electricity. Orkla's own hydropower plants produced 3.8 TWh of electricity. All Orkla companies focus continuously on saving and investment projects to reduce energy consumption, and to use renewable energy to the greatest possible extent.
Orkla is targeting to rationalise transport and use packaging materials that can be
re-used or recycled. Orkla companies are members of Nordic organisations that collect and recycle packaging.
Orkla's products are based on safe raw materials and are manufactured using accepted methods. Orkla requires its suppliers to meet specific product safety, environmental and ethical production standards. In 2008 there was additional focus on monitoring the Group's suppliers, and a food safety system was developed for approval of and auditing suppliers.
In 2008 several companies made efforts to comply with the requirements laid down in the EU's chemical regulation, REACH (Registration, Evaluation and Authorisation of Chemicals) by ensuring that necessary chemicals are
pre-registered with the European Chemicals Agency (ECHA).