Communication on Progress 

Carlsberg Group has been a member of UN Global Compact since May 2008 and this years COP will be our second publication. By joining this initiative, the Carlsberg Group has made a clear commitment to support and advance the 10 principles of the Global Compact in respect to human rights, labour rights, the protection of the environment and anti-corruption within our sphere of influence.

Read the message from our President and CEO Jørgen Buhl Rasmussen
The Carlsberg Group has joined the UN Global Compact on behalf of all our subsidiaries, however, four of our Group companies have decided to join separately, to highlight their local commitment to the UN Global Compact, and these companies are: Svyturys- Utenos Alus in Lithuania, Carlsberg Srbija in Serbia, OJSC Olivaria Brewery in Belarus and Slavutich in Ukraine. Their progress communication can be found on the UN Global compact website 

As part of the Carlsberg Group's commitment to the United Nations we have prepared a 'Communication on Progress' (COP) to offer our stakeholders a progress update on the practical actions, targets, performance indicators and outcomes from our work with implementing the 10 UN Global Compact principles in our business. The COP also contains links to our CSR website, where additional information on our work with CSR can be obtained, as well as links to relevant GRI indicators and case stories.

Integrating CSR throughout the value chain
In the COP we will be referring to our Policies and our Supplier and Licensee Code of Conduct to show how we work with the 10 principles.

"Integrating CSR throughout the value chain" is part of our company business strategy, which means that we not only work with CSR where we have full ownership. We want our suppliers to produce their goods in an ethically, environmentally and socially responsible way. Carlsberg has a large and complex supply chain and promoting responsibility within it is not an easy task. The Supplier and Licensee Code of Conduct (SLCC) is included in all global supplier agreements with the aim of minimising the level of business risk within the supply chain, build closer relationships with our suppliers and licensees and safeguard future supply. It is currently available in English and simple Chinese.

On the other hand our Policies set out the requirements for our majority-owned companies to live up to. We have developed policies within: Labour & Human Rights, Business Ethics, Health & Safety, Environment, Marketing Communication and Community Engagement.

Introduction to Human Rights and Labour (principles 1, 2, 3, 4, 5 & 6)

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Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

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Principle 2: Businesses should ensure that they are not complicit in human rights abuses

At Carlsberg, we believe that our employees are fundamental to our success and our aim is to provide an open and inspirational workplace where our employees can develop their full potential

We are strongly committed to high standards that create a fair, respectable and safe workplace for all employees in the Carlsberg Group. We support the United Nations Universal Declaration of Human Rights and the International Labour Organisations Declaration on Fundamental Principles and Rights at Work.

In 2009, we introduced a new Labour and Human Rights Policy to set out the working standards for our business. This underlined our commitment that all our employees must enjoy the same standards wherever they work.

2010 was the first full year that our Labour and Human Rights Policy was in effect. Our group companies continued to implement the requirements of the Policy by training their local Human Resource managers and adjusting local procedures where necessary.

During 2010, Carlsberg Group companies started to implement the Labour and Human Rights Policy in their local employment procedures. We also introduced new performance appraisal procedures to foster transparency in the evaluation processes and assist employees in identifying opportunities for improvement.

We measured the progress of each company in implementing the Policy through a self-assessment. The results showed that, although progress has been made, more work is required to increase awareness of the Policy and implement its requirements, particularly in our Asian operations. In 2011, we will develop action plans with each company to ensure the Policy is better integrated into their business.

We also worked towards integrating elements of the Policy into group-wide processes such as recruitment, inductions and training programmes. We have not made as much progress as we hoped, so this will be a priority for 2011.

2010 achievements

• Continued implementation of the LHR Policy
• Began integrating Policy elements into induction programmes
• Introduced new performance appraisal process focused on development
• New targets set for Labour and Human Rights
• An e-learning catalogue was introduced

Our 2011 plans

• Training material developed for the HR community and people managers
• LHR Policy translated and communicated to all employees
• All companies to conduct review of procedures against the LHR Policy
• Internal audits in selected countries to record compliance
• Guidelines for non-discrimination developed and integrated into recruitment processes
• Non-discrimination, Harassment and Business Ethics implemented in  employment contracts
• LHR included in M&A processes.

Our 2013 targets

• All employees are aware of their rights
• Specific e-learning module developed for LHR for use in induction training & management development
• All People Managers are automatically trained in LHR when hired/appointed as a new People Managers
• Employee Engagement introduced as a KPI for all managers
• Gender distribution: TBD in May 2011 after the Succession Planning process

Relevant downloads:

• Supplier and Licensee Code of Conduct (SLCC)
• Labour & Human Rights Policy

Visit the Labour & Human Rights section of our website for additional information on the Carlsberg Group's work within this area.

In the Labour and Human Rights Policy Carlsberg Group's support to freedom of association and right to collective bargaining, including our employees rights to form, join or not join a labour union or other organisations of their choice, and to bargain collectively in support of their mutual interests without fear of punitive actions such as intimidation, harassment or termination of employment is clearly stated. This also means that in situations where no legally recognised union exists in the area of operations, or if only state-authorised organisations are allowed, the Carlsberg Group responds favourably to initiatives supporting the establishment of alternative means of achieving effective representation of workers interests.

The Supplier and Licensee Code of Conduct (SLCC) includes requirements on freedom of association and the right to collective bargaining

In the Labour and Human Rights Policy it is clearly stated that forced labour in any form is not allowed in the Carlsberg Group, including bonded labour, indentured labour, slave labour, or human trafficking. Employees are allowed to move around freely and leave their place of work when their shift ends. Furthermore, Carlsberg Group companies will not ask workers to submit their original identity papers or any other original official documentation or to pay a deposit as part of their conditions of employment.

The Supplier and Licensee Code of Conduct (SLCC) includes requirements on forced labour, including bonded labour, indentured labour, slave labour, or human trafficking

The Labour & Human Rights Policy underlines that the Carlsberg Group does not condone the hiring of child labour under any circumstances. The minimum age for full-time employment is 15 or the legal minimum age for employment, whichever is greater unless the local minimum working age is 14 and in accordance with the ILO exception for developing countries, where minimum working age is accepted under the previously mentioned conditions. The Carlsberg Group must not hire workers under the age of 18 for positions that require hazardous work that could jeopardise their health, safety or morals.

The Supplier and Licensee Code of Conduct (SLCC) includes requirements on child labour, which amongst other criteria, determines that suppliers must ensure that where permitted by national laws, suppliers may allow children aged 12 to 15 to perform a few hours of light work a day. The prerequisite is that the work must constitute simple tasks of a limited nature and not interfere with the childrens educational responsibilities. Furthermore, the work must not be harmful to their health or development. It is also stated that the suppliers shall refrain from hiring workers under the age of 18 for positions that require hazardous work that could jeopardise their health, safety or morals.

The Labour and Human Rights Policy reflects the Carlsberg Groups position on discrimination. This includes that no employees must experience any form of discrimination based on race, colour, gender, language, religion, political or other opinion, caste, national or social origin, property, birth, union affiliation, sexual orientation, health status, age, disability, or other distinguishing characteristics.

The Supplier and Licensee Code of Conduct (SLCC) includes requirements on non-discrimination, which are in line with the Carlsberg Group Policy.

Introduction to Environment (principles 7, 8 & 9)

Principle 7: Businesses should support a precautionary approach to environmental challenges

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Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility

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The sustainability of the environment plays a vital role within our business. Most of our raw materials and ingredients are sourced directly from nature. The continued success of our business is directly linked to the health of the environment and the communities where we operate.

We are continually looking for ways to reduce our impact on the environment. We take thereby a holistic approach and look at all elements of the value chain, such as working together with our research centre to develop new barley types, lowering CO2 emissions and installing energy efficient, HFC free coolers at points-of-sale.

Through the standards set out in our Environmental Policy, we aim to use natural resources more efficiently and minimise the negative impact of our operations. Further we have also joined the CEO water mandate and Caring for Climate initiatives, both initiatives supported by the United Nations.

It is our ambition that all Carlsberg production sites are certified according to ISO 14001 standards, and that they develop their own annual plans for maintaining and constantly improving the environmental performance of their operations. Today, 47 (2009: 44) out of the 74 reporting majority owned sites are certified and within the coming 3 years we expect all to be certified.

Within our environmental strategy, we are focussing our efforts on three areas that are the most relevant to our business: Water, Energy and Emissions and Packaging . We focus thereby on three priorities.

Our ambition is to sustain our industry leadership position when it comes to efficiency on water and energy consumption and energy emissions in our production sites

Within packaging , we want to reduce packaging and promote reuse and recycling of packaging material.

Increasingly, we are starting to look at ways on how we can better engage with communities where we operate and work with our agricultural suppliers, particularly in relation to water.

2010 achievements

General

• New Environmental Policy was introduced in April 2010 to all majority-owned companies.
• A new model was developed to create site-specific targets for utilities.

Energy & emissions

• Maintained energy efficiency at 2009 levels despite decreased production (Specific energy consumption 2010: 32,3 kWh/hl.)
• Small reduction in CO2 emissions compared to 2009 (Specific CO2 emissions 2010: 8,6 kg CO2/hl)
• Carried out Prodex and Lean Utilities programmes in various regions
• New energy and CO2 targets for 2013

Water

• Water efficiency improved by 5% (Specific water consumption 2010: 3,5 hl/hl)
• Water efficiency initiatives carried out across various breweries
• We conducted a pilot assessment on four sites in order to better understand our risk and communities' vulnerability to water scarcity and other related issues.

Packaging

• Development of a Carbon Calculator has startet

Our 2011 plans

Energy & emissions

• Continue implementation of Lean utility program across the group
• Increase best practice sharing across the group
• Network optimisation
• Introduce route planning in logistics operations
• Introduce environmental guidelines for warehouses
• Assess possibilities of renewable energy use
• Renewable energy research project to use spent grain as energy source

Water

• Carry out a risk assessment on all our sites
• Identify key challenges for Carlsberg and the communities in which we operate
• Investigate possible partnerships with external organizations

Packaging

• Train users in NE and WE to use packaging tool.
• Investigate possible partnerships with external organizations

Our targets for 2013

Our ambition is to be the most efficient international brewing company in terms of water and energy usage on our production sites. We have set new targets for energy and water efficiency and CO2 emissions which we aim to reach by the end of 2013. We have also set targets and ambitions for our logistics operations and for water management outside production to improve our environmental performance across our value chain.

During 2011, we will be further investigating opportunities for new packaging solutions and renewable energy. Our ambitions for these areas will be published at a later stage.

Energy & emissions

• Reduce Energy consumption by 10 % to 29 kWh/hl* (2010: 32,3 kWh/hl)
• Reduce Co2 emissions with 6 % to 8.2 kg Co2/hl* (2010: 8,6 kg CO2/hl)

Water

• Reduce water consumption by 14% to 3.2hl/hl * (2010: 3,5 hl/hl)
• Long-term strategic approach to water risk management in place
• New technologies for re-use of water inside and outside our breweries explored

Relevant downloads

• Supplier and Licensee Code of Conduct (SLCC)
• Environmental Policy

Case story

• Energy Leaders Award
• UK 5 prestigious Awards
• UK: The all seeing eye

Visit the environmental section of our website for additional information on the Carlsberg Group's work within this area.

* Figures compared to 2010 data

EC 2
EN 1
EN 3
EN 4
EN 5
EN 6
EN 7
EN 8
EN 16
EN 18
EN 20
EN 21
EN 26
SO 5

Introduction to Anti-corruption (principle 10)

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At Carlsberg, we are committed to being a respectable business partner and employer wherever we operate. Our business ethics standards help us to achieve this goal through fair and ethical business practices

We believe that acting responsibly and fairly are important factors in achieving long-term business success. Many of our Group companies have worked with business ethics as a normal part of their processes for a long time. With the new CSR approach introduced in 2008 we are developing a common Group-wide standard for business ethics.

Our Business Ethics Policy and the supporting Handbook and Guidelines are designed to assist our employees when faced with day-to-day business ethics dilemmas; including situations related to maintaining confidentiality, avoiding misuse of Carlsberg's assets to obtain personal advantages and understanding the rules regarding donations and gifts. We are developing training materials and e-learning as well as reporting procedures to improve our performance within business ethics and to foster transparency.

As a normal part of our business procedures, Group Internal Audit carries out a random review of policies and procedures for all essential activities, including topics related to anti-corruption, in order to ensure transparent and sustainable business practices are in place and working effectively.

2010 achievements

• Business Ethics Policy was introduced
• Training courses organised
• Handbook provided
• New reporting procedures introduced
• Whistleblower system introduced
  

2011 plans

• Communicate the Policy across the Group
• Further develop the train the trainers programme
• Involve employees in global e-learning courses
  

Our targets for 2013

• Communicate the Policy across the Group
• Further develop the train the trainers programme
• Involve employees in global e-learning courses

Relevant downloads:

• Supplier and Licensee Code of Conduct (SLCC)
• Business Ethics Policy

Visit the section on Business Ethics on our website for additional information on our work with the business ethics.