Annual report 2018
Marel’s Board of Directors and Executive Team approved a corporate social responsibility guidance policy for the company in 2016. We are reporting on the company’s activities as measured against its corporate social responsibility guidelines for the third time.
Marel does not operate as a business in isolation but is part of the larger society ̶ in which we have responsibilities, duties, and rights. Our approach is to go beyond merely complying with laws and regulations. We look at our contribution to society as a whole and how we can add value where we operate. To turning these words into action, we are a signatory of the United Nations Global Compact. In 2018, we were also part of the NASDAQ Sustainable Markets Initiative for the second time and complied with the NASDAQ ESG reporting guidelines.
In line with our corporate social responsibility guidelines, we continuously monitor how our operations and the systems and solutions we provide affect society, economies, and the environment. Our relationship with the communities where we operate is symbiotic: their benefit is our benefit. We take responsibility for our actions and encourage our suppliers, agents, employees, and customers to do the same.
Marel focuses its efforts to benefit people, the planet and its operations on three of the United Nations Sustainable Development Goals:
Goal 2: End hunger, achieve food security, improve nutrition, and promote sustainable agriculture
Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation
Goal 12: Ensure sustainable consumption and production patterns
We view innovation to boost productivity as the way to make meaningful contributions towards these goals. Innovation has always been a core driver of Marel’s endeavors. Annually we invest approximately 6% of our revenues into research and development. We also foster innovation by working in partnership with our customers, universities, and other partners to develop breakthrough solutions for sustainable food production (Goal 9).
To ensure sustainable consumption and production patterns (Goal 12), we work hard to create solutions that reduce food waste, increase efficiency in resource use, boost yields, add recycling options, and optimize portion sizes. Marel takes part in building and supporting infrastructure that promotes sustainable industrialization and fosters innovation through modern technology.
Traceability and food safety is a key element to how Marel develops and produces solutions and software for food processing. Our Innova Food processing Software provides processors with full traceability of raw ingredients as they flow through production. Such solutions contribute directly to food security and improved nutrition for consumers around the globe (Goal 2).
In 2018, Marel’s CEO Árni Oddur Thórdarson joined Nordic CEOs, an initiative formed by the CEOs of some of the Nordic region’s largest companies who share a commitment to integrate the UN Sustainable Development Goals in their respective business strategies. Through this forum, CEOs exchange experiences and explore initiatives that can accelerate the collective efforts of achieving the UN Sustainable Development Goals and the Paris Agreement.
Social responsibility is a priority in our corporate culture. We are committed to providing a safe and healthy working environment with equal opportunities for all of our employees. When we engage with local communities, the focus is on innovation and education. Our employees have the right to freedom of association and we maintain a zero-tolerance policy towards human rights violations and illegal labor conditions.
Through an ongoing dialogue with our customers and suppliers, we strive to increase yields and minimize waste in food production while promoting food safety, traceability, quality, and animal welfare. Sustainability is the central goal in our innovation process. We focus on creating new methods and finding approaches that minimize environmental impacts, such as CO2 emissions, and maximize the efficient use of resources including raw materials, water, and energy.
Our purpose is to generate value for our partners and shareholders through fair trade practices. We seek to promote long-term profitability and good business practices along our entire value chain. Continuous improvements are made to make sure we comply with international laws, anti-corruption rules, and local regulations. We believe that all parties must contribute fairly towards the societies in which they operate.
In 2017, Marel participated in the NASDAQ Sustainable Markets Initiative for the first time and follows the NASDAQ ESG reporting guidelines. Marel is now part of the initiative for the second time.
|
Metric
|
2018
|
2017
|
|
|---|---|---|---|
|
E1
|
Direct & indirect GhG emissions
|
31,475 tCO2e
|
28,193* tCO2e
|
|
E2
|
Emission intensity
|
26.27 kgCO2e Per 1000 €
|
27.10 kgCO2e Per 1000 €
|
|
E3
|
Energy usage
|
62.9 GWh
|
61.6* GWh
|
|
E4
|
Energy intensity
|
253 KWh per m2
10.86 MWh per FTE |
244* KWh per m2
12.54* MWh per FTE |
|
E5
|
Energy mix
|
Renewables
|
Natural gas
|
|
E6
|
Water Usage
|
35,292 m3
4,982 m3 reclaimed |
-
- |
|
E7
|
Environmental operations
|
Yes
|
Yes
|
|
E8
|
Climate related risk oversight
|
No
|
No
|
|
E9
|
Sustainability issue oversight
|
Yes
|
Yes
|
|
E10
|
Climate risk mitigation
|
-
|
-
|
* Restated due to improved data accuracy.
|
Metric
|
2018
|
2017
|
|
|---|---|---|---|
|
S1
|
CEO pay ratio
|
12.5:1
|
15.2:1
|
|
S2
|
Gender pay ratio
|
1.1:1
|
-
|
|
S3
|
Employee turnover ratio
|
11.9%
|
12.2%
|
|
S4
|
Gender diversity
|
15.4/84.6
|
15.4/84.6
|
|
S5
|
Contractors/Part-time worker ratio
|
16%
|
16%
|
|
S6
|
Non-discrimination policy
|
Yes
|
Yes
|
|
S7
|
Injury rate
|
3.2
|
-
|
|
S8
|
Global health & safety policy
|
Yes
|
Yes
|
|
S9
|
Child & forced labor policy
|
Yes
|
Yes
|
|
S10
|
Human rights policy
|
Yes
|
Yes
|
|
Metric
|
2018
|
2017
|
|
|---|---|---|---|
|
G1
|
Board diversity
|
42.1/57.9
All independent of Marel |
42.1/57.9
All independent of Marel |
|
G2
|
Board independence
|
Yes
|
Yes
|
|
G3
|
Incentivized pay
|
No
|
No
|
|
G4
|
Collective bargaining
|
Yes
|
Yes
|
|
G5
|
Supplier code of conduct
|
Yes
|
Yes
|
|
G6
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Ethics & anti-corruption
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Yes
|
Yes
|
|
G7
|
Data privacy
|
Yes
|
Yes
|
|
G8
|
Sustainability report
|
Yes
|
Yes
|
|
G9
|
Disclosure practices
|
UN's SDGs
|
-
|
|
G10
|
External validation assurance
|
Partial
|
Partial
|