Sustainability report 2016

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ContentsFrom our CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Review of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Skånemejerier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Sustainable dairy farming . . . . . . . . . . . . . . . . . . . . . . . 10

Concern for the environment and climate . . . . . . . . . 14

Our products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Purchase responsibility in the value chain . . . . . . . . . 24

Our workplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Our role in society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Stakeholder dialogue and materiality analysis . . . . . 40

ABOUT THIS SUSTAINABILITY REPORT

This is Skånemejeriers’ sustainability report, 2016. Here you will find in-formation about our work with environmental and social issues for the years 2014 and 2015 and significant events leading up to publication in 2016. The report is inspired by the Global Reporting Initiative (GRI) guidelines for sustainability reporting.

The sustainability report covers Skånemejerier’s wholly-owned produc-tion units, that is to say Kristianstad Ostförädling AB, Kristianstads Mejeri AB, Malmö Mejeri AB and Hjordnära Mejeri AB.

Skånemejerier’s focus on sustainable development has become incre-asingly evident across the entire company. Sustainability issues have become more obvious and are emphasized throughout our daily opera-tions. Our aim is to constantly reach new goals by finding constructive, long-term solutions that contribute to a sustainable future, caring for animals, the environment and you.

Happy reading!

WHAT DO YOU THINK ABOUT OUR SUSTAINABILITY EFFORTS? Please feel free to send us your comments and points of view via: skanemejerier.se/fragor

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Care for animals, nature and youThe world is facing a major climate challenge and it is our responsibility as a company to do what we can to contribute to a positive developme-nt. We cannot turn a blind eye to the fact that our business, like all food production, impacts the climate. It is important to maintain this insight so that we can work constructively to reduce our emissions.

Today, around 400 dairy farms from Skåne and southern Sweden deliver their milk to us. The milk comes from healthy cows that receive the best care. It requires continuous work to ensure that the cows feel good, get their food and water and have a cubicle where they can lie down nice and dry. All this is done every day throughout the year by our dairy farmers. It actually goes without saying, because when the cows are healthy, the milk tastes better. Cows that supply milk to us receive GM-free feed and we ensure that any soy in their feed has been sustainably produced. Skånemejerier is the largest dairy in Sweden with third-party certified dairy farms.

Because our products are made from natural ingredients, it is important for us to protect the environment and the climate. To reduce the need for fossil fuels is one of our long-term environmental targets. Over the last four years, we have achieved a 66% decrease thanks to investments in renewable energy. At the begin-ning of 2016, our diesel vehicles began refuelling with HVO at Malmö Dairy. HVO diesel is a 100% renewable fuel and provides carbon dioxide savings of up to 88% compared to fossil diesel. This will result in significant reductions in emissions from transport and help us achieve our environmental objective for the year 2020.

The focus on healthy products continues and we have launched over 30 new quark products over the last two years. Due to substantial investments in the dairy in Malmö in 2015, we are now finally able to produce quark from Swedish ingredients.

I am proud of the fact that, in 2015, Skånemejerier was ranked as the country’s 16th most sustainable brand by Swedish consumers in the Sustainable Brand Index, Scandinavia’s largest brand study on sustainability. By acting responsibly and maintaining an open, ongoing dialogue with our customers, consumers and other stakeholders, we create a firm basis for continued trust. We want our products to contribute to a better world for animals, for nature and for you.

Björn Sederblad CEO Skånemejerier

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Review of the yearSTRONG BRAND2015 ended with Skånemejerier as the strongest dairy brand in Sweden at national level, ac-cording to the YouGov’s Brand Index.* We enjoy strong confi-dence among consumers, who consider Skånemejerier to be a dairy company that cares about dairy farmers. * Read more on page 8

PRODUCTIONRelative carbon dioxide emissions from Skånemejerier’s production has decreased by 66% from 2010 to 2015 owing to several investments in renewable energy.

STRONG ORGANIC TRENDIn 2015, the growth of organic dairy products went up to 15%. Year-on-year growth was as high as 40%. Generally speaking, the eco trend extends over all food categories. The reason is an increased awareness among consumers about what food contains and how it is produced.

PACKAGINGSkånemejerier works constantly to increase the proportion of renewable packaging materials. For example, Bravo’s screw-top has been replaced with a re-newable variant and Åsens 0.9 litre milk is being launched in renewable packaging materials, both being made of bioethanol from sugar cane.

SUPPLIER AUDITSSkånemejerier follows up its suppliers on the basis of de-tailed quality factors such as product safety and environme-ntal, ethical and social aspects In 2015, 11 suppliers were visited. These were selected on the basis of their importance in relation to the maintenance of good food safety.

STAFF HEALTH In 2015, we undertook a specific health initiative aimed at our employees. Health profiles were created, lectures on diet, exerci-se, health and mindfulness were organised and more healthy food options were served in staff canteens.

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SUSTAINABLE SOY PRODUCTIONSkånemejerier is involved in the Swedish Soy Dialogue for re-sponsibly produced soy, certified under ProTerra or RTRS (Round Table on Responsible Soy) rules. In doing so, we are ensuring that the cultivation of soy takes place with respect for people, nature and the environment.

THE BRAVO BEE EFFECTJuice, as we all know, comes from fruit, and it is owing to bee pollination that many fruits can grow. Unfortunately, the number of bees in the world has been significantly reduced. To draw attention to this develop-ment and increase bee health, Bravo has set up hives at various places in Sweden.

TRANSPORTAt the beginning of 2016, our trucks began refuelling with HVO at Malmö Dairy. HVO diesel is a 100% renewable fuel and provides carbon dioxide savings of up to 88% compared with fossil diesel. This will result in significant reductions in emis-sions from transport and help us to achieve our environmental objective for the year 2020.

AWARDS• We won many fine awards for our products at the internatio-nal dairy competition in Her-ning, Denmark, 2015.

• Lindahl’s Quark was proclai-med Product of the Year 2014 for having rapidly achieved a significant market share and for developing the dairy segment.

• Skånemejerier Storhushåll (Skånemejerier Food Service) was named Supplier of the Year during the 2014 Restau-rant Gala for its high quality products and close work with customers.

• Skånemejerier was ranked as the country’s 16th most sustai-nable brand by Swedish consu-mers in the 2015 edition of the Sustainable Brand Index ™.

KALVINKNATETKalvinknatet is a running race for children with the aim of getting kids to exercise in playful ways. The race has been held since 2002 and the 2015 version was arranged at 20 locations in Sweden, setting a new record of almost 30,000 fun-running children. All surplus goes to sports clubs’ youth activities.

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Skånemejerier

OUR BUSINESS

Our work is based on the key words ‘closeness’, ‘taste’ and ‘health’. We advocate health and wellbeing by guaranteeing good animal welfare, high quality and 100% Swedish milk ingredients for the entire product line under the brand name Skånemejerier. We care about Swedish dairy farmers. Skånemejerier’s dairy farmers receive higher renumeration per kilogram of milk than is paid by the market leader. For us it is important that dairy farmers are not only able to cover current expenditures on the farm, but that they are also able to invest for the future.

Skånemejerier was founded in 1964 when four Scanian dairy associa-tions merged to become the Skånemejerier economic association. The association is still owned by dairy farmers today and supplies its milk to Skånemejerier AB, which is owned in turn by the French dairy group, Lactalis. Lactalis invests in production and brands in a way that was not previously possible, ensuring a future for Swedish dairy production. Skånemejerier’’s dairy products (milk, yogurt, soured milk and cream products and quark) enjoy a market share of 71% in southern Sweden and 13% of the total Swedish market. It was also noted in 2015 how a growing interest in Swedish food led to increased demand for Skåneme-jerier’s products outside of Sweden too.

Since its foundation 52 years ago, Skånemejerier has grown to become an established option on Swedish dairy counters. This shows a trust in our products for which we are very grateful and which obliges us to make even greater efforts. Operations at Skånemejerier AB today encompass the production and marketing of drinking milk, soured milk products, cheese, fats, various fermented products and fruit drinks. The group’s brands include Skånemejerier, Bravo, Allerum, the organic brand Hjordnära, Åsens Lantmjölk, Lindahls and Salakis. We employ over 600 employees directly and many more indirectly. About 400 dairy farmers in Skåne and southern Sweden deliver milk to our dairies.

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OUR CSR TEAM

Skånemejerier’s CSR team consists of representatives from different parts of the company, including senior management. During meetings, important aspects concerning sustainability and the company’s work are discussed in relation to corporate responsibility. In 2015, the CSR team updated the company’s Code of Conduct, which will be introdu-ced to all our employees during 2016.

CODE OF CONDUCT

Skånemejerier’s Code of Conduct is a collective document covering both our business and our employees. It describes how we are to act, behave and conduct our business in an ethically, socially and environ-mentally responsible way. Managers and employees are equally respon-sible for ensuring that the code of conduct is complied with.

MILK

SOUR MILK

YOGHURT

CREAM

COTTAGE CHEESE

BUTTER

JUICEHARD CHEESE

OTHER

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OUR BUSINESS AND OUR ORGANISATION

The bulk of the Skånemejerier group’s sales to the Swedish retail indu-stry are conducted through Skånemejerier Försäljning AB. This com-pany houses the group’s headquarters, management and other staff functions, all of which are located in Malmö. Sales operations to retail are also undertaken by Lindahls Mejeriprodukter AB and to the Swedish foodservice market by Skånemejerier Storhushåll AB. The group’s production takes place at Malmö Mejeri AB, Kristianstads Mejeri AB, Hjordnära Mejeri AB and Kristianstad Ostförädling AB All subsidiaries are wholly owned by Skånemejerier AB. The parent company’s main operation is to manage the group’s milk purchases. The great majority of Skånemejerier’s products is sold in the Nordic countries. A very limi-ted amount is exported to other parts of Europe and the world.

Product group distribution based on 2015 annual sales volumes for Skånemejerier Försäljning AB, Skånemejerier Storhushåll AB and Lindahls Mejeriprodukter AB.

CONSUMER CONFIDENCE IS STRONG

2015 ended with Skånemejerier nationally ranked as the strongest da-iry brand in Sweden in YouGov’s so-called Brand Index *. We think that is just fantastic. We enjoy strong confidence among consumers, who consider Skånemejerier to be the dairy that cares about dairy farmers. This is a result of many years’ joint endeavor between dairy farmers and us.

In addition, we enjoy great commitment from our consumers who want to see Swedish milk and milk products from a dairy that cares about their farmers and the milk cows. Every day, we receive questions and comments from engaged consumers in social media.

* YouGov’s Brand Index is based on six parameters: Brand recommendation, Satis-

faction, Reputation, Value, Quality, Impression and Buzz (latest news). The results are

summarised in terms of the difference between what one has heard to the positive and

to the negative about the brand.

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WE ARE WHERE OUR CONSUMERS ARE

Today, almost all Swedes use the internet. Half of Sweden’s internet users look at Facebook every day, 70% checking in at least once in a while. On average, Swedes spend almost 6.5 hours a week on social me-dia. The services and channels used vary between age groups, but Face-book is the largest, in terms of the average for all ages, with Instagram a clear second.

That is why we at Skånemejerier maintain a strong online presence; it is a way for us to build relations with our broader target group. We communicate with consumers via Facebook, Instagram and Twitter. Facebook is clearly our strongest channel, where we reach an average of 9.9 million people each month. In February 2016, we achieved a peak and reached as many as 11.2 million people. The digital channels, especially the social networks, are important to us for finding out what consumers have to say about us as a company and about our products. It is also an easy, rapid way of answering questions and concerns. In addition, we make sure to learn more about who our consumers really are. This is important and valuable; after all, it is for them that we make our products.

Since the autumn of 2015, we have also been using LinkedIn to share everything from employee interviews and job ads to product news. We also spread our job listings news by means of videos on YouTube. These are two initiatives that have made our recruiting process more digital. Our intention is to reach more interested people.

The various social networks are also platforms where we communicate our campaigns and product launches. “When the cows are healthy, the milk tastes better” is our animal welfare communication that we commenced with at the beginning of 2016. Our aim is to raise aware-ness of the extensive work with animal health, environment and quality that we and our farmers carry out. Social media have been important channels through which we reach out with this message.

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Sustainable dairy farmingAll farms that deliver milk to us are quality-assured and certified. To be able to meet all the requirements and rules, everything done on the farm has to be informed by sustainability thinking. Dairy farmers and their employees make sure of the cows’ well-being every single day of the year. This work is primarily based on engagement, presence and experience, although modern technology may also lend a hand. If the cows feel good, the milk will be good too.

HEALTHY COWSOutside or inside, efforts are constantly made to ensure that all is well with the cows. They need their food and water and somewhere to lie down that is nice and dry. All this is done every day throughout the year by our dairy farmers and their employees.

Swedish animal protection law also ensures care for our animals, both large and small. Moreover, the use of antibiotics as a preventive measu-re has long since been banned; in other words, giving healthy animals antibiotics is prohibited. Skånemejerier’s farmers have healthy cows and very few antibiotics are used in Sweden in comparison with other countries. Statistics from the European Medicines Agency in fact show that Sweden has the lowest antibiotic use within the entire EU: Yet another reason to cherish our Swedish milk production.

PASTURE AND FEED Being able to move around freely increases the cows’ well-being. During the summer months, all cows should be allowed to graze freely and enjoy each other’s company. Sweden also has a law that says all cows should be allowed to graze outdoors; this is unique among European countries. The mild climate of southern Sweden means the cows can stay outside longer than in the north of the country.

The cows that supply milk for us get GM-free feed, i.e. it is not geneti-cally modified. Feed analyses are performed at the end of each season to determine the nutritional content of the feed. With the help of feed analyses, the cows’ feed composition is nutritionally balanced.

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SUSTAINABLE SOY PRODUCTIONSoy is an important source of protein in animal feed. The proportion of soy in Swedish milk cows’ feed is around 2 per cent on average. Skåne-mejerier have signed the Swedish Soy Dialogue’s declaration of respon-sibility that all soy used in feed for the cows should be responsibly pro-duced and certified in accordance with ProTerra or RTRS (Round Table on Responsible Soy). Certified soy embodies both physically certified soy and the purchase of soy certificates since both approaches contribute to responsibly produced soy. Thus, we do what we can to ensure that the cultivation of soy occurs with respect to people, nature and the environment. Certification means meeting a set of requirements inclu-ding proper and safe working conditions on soy plantations, responsible use of agricultural chemicals and crop cultivation not taking place in unique natural areas such as the Atlantic rain forest, the Cerrado and the Amazon. The declaration of responsibility covers all Skånemejerier AB’s subsidiaries, i.e. Skånemejerier Försäljning AB and Skånemejerier Storhushåll AB as well as Lindahls Mejeriprodukter AB.

CROP PRODUCTIONThe crops to be grown each year are set out in a crop production plan, which states where the crop is to be grown, the expected harvest and thus the amount of fertiliser needed. The farms also carry out so-called land mapping to determine the plant nutrient content in the soil, levels of lime, the type of soil and humus content. This is done to be able to adjust fertilisation and liming as needed. The plant nutrient balance calculations begun on our farms in the 1990s, continue to be carried out today and are closely followed up on all our farms. The plant nut-rient balance gives values for the difference between input and deple-tion of nutrients on the farms. The values are expressed as excesses or deficiencies in the nutrients phosphorus, potassium and nitrogen. The bigger the excess, the greater the risk of negative environmental im-pact and increased cost for the farmer. Owing to continuous monitoring using the plant nutrient balance, dairy farmers are able to reconcile and correct any excesses.

LAND AND WATERSoil properties are extremely important for crops which are to provide feed for cows and food for humans. Cultivation takes place with care-ful consideration of water. No fertilisation may take place near water courses and all fertiliser must be spread to fields in accordance with strict rules. In Sweden, we have plenty of water at most locations. This is something unique which we need to protect. Water consumption on farms, is an area that our farmers have begun to document. The amount of water per kilo of produced milk can be estimated and be-come a key figure for efficiency and monitoring of water consumption. Efforts to reduce usage, also lead to less water needing to be pumped up. The procedures for cleaning milk tanks and stalls are being exami-ned in order to reduce the amount of water used.

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ENERGY AND CLIMATE

Work in relation to energy and climate issues takes place at all our dairy farms. A dairy farmer can calculate the farm’s emissions of greenhouse gases (CO

2-equivalents) using the ‘Klimatkollen‘, an advisory service of

Greppa Näringen. The calculations provide information about which areas related to feed, nutrition, water and energy usage are most im-portant to work with from a climate point of view.

Mapping energy use and fuel consumption on the farm means that areas can be identified where energy savings can be made. Energy may be saved, for example, by reusing the heat from cooling milk to heat washing water or farm buildings.

Many of our dairy farmers have undergone training in fuel-efficient driving (Eco-driving) that helps reduce fuel consumption when opera-ting tractors, combine harvesters, loaders and other vehicles. Proper loading procedures are also part of the training. Burning less fuel results in lower carbon dioxide emissions and a smaller carbon footprint. Our goal is for everyone to receive this training in order to further increase awareness around energy and climate issues.

ORGANIC DAIRY FARMS

Skånemejerier’s organic product line is called Hjordnära and the 40 or so farms that deliver milk to Hjordnära are certified in accordance with KRAV requirements. The cows are given KRAV-labelled feed, which is grown without the use of artificial fertilisers or pesticides. At least 60 per cent of the feed is locally produced, usually from one of our own farms. Putting the cows out to graze during the summer season increa-ses biodiversity around the farms. KRAV is Sweden’s best known eco-la-belling for food. It is based on ecology with particularly high standards for animal welfare, health, social responsibility and climate impact.

BIODIVERSITY

Not only our organic cows contribute to biodiversity. A number of Skånemejerier’s farmers have cows which graze in natural pastures. These pastures do not receive any other form of fertilisation. Indeed, it is thanks to the cows’ grazing that different flowers and other plant species can reproduce in a natural way. Skånemejerier’s cows thus contribute to the preservation of the regions’ unique plant life.

Swedish milk production is a prerequisite for the achievement of two parliamentary environmental quality objectives: “A rich agricultural landscape” and “A rich plant and animal life”.

In 2015, growth amounted to 15 per cent for organic dairy products. The previous year, growth was as high as + 40 per cent. Owing to the increased demand for orga-nic dairy products, we recruited a number of new organic dairy farmers during the year to ensure supplies of organic milk. Generally speaking, the eco-trend extends to virtually all categories of foods. The reason is an increased awa-reness among consumers about what food contains and how it is produced.

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LARGEST DAIRY WITH THIRD-PARTY CERTIFIED FARMS

At Skånemejerier, we have been working with the quality management system ISO 9001 since 2012. The foundation of this work is inspections of each farm. These are carried out annually on the basis of Skåne-mejerier’s delivery and quality standards as well as the Federation of Swedish Farmers’ environmental audit rules. Audits cover the farm, working environment, crop production, cows and milk production. At Skånemejerier, we have chosen to bring in an external company to carry out the certification work on all our farms. The certification is thus undertaken by Intertek, a company approved by SWEDAC, the body responsible for the accreditation of environmental auditors and certi-fication bodies. Skånemejerier is the largest dairy in Sweden to have third-party certified farms. This means extra safety both for consumers and for us. The external control means that we can always be sure to have the best possible milk from which to make our cheese, yoghurt and soured milk and cream products.

THE BRAVO BEE EFFECT

Under the brand Bravo, we sell juice of different flavours, packaging and sizes. But without bees-no juice. That’s why we have the Bravo Bee Effect.

In many parts of the world, the numbers of pollinating insects have declined owing to diseases and environmental changes. Fewer fruits then develop and that may mean less juice. Skånemejerier and Bravo want to lend a helping hand to both bees and nature, as well as to draw attention to the issue of bees and their health. Bravo has, for example, set up hives at various places around Sweden for bees to live in. It may not be these particular bees that pollinate the fruits that end up in Bravo juice, but we still want to help bees and nature in ways that we can.

Pollinating insects are essential for us humans to have food and be-verages, and the most important of these is the honeybee. In a global perspective, about a third of the food we eat is entirely dependent on pollinating insects and about 85% of the pollination is carried out by honeybees. So bee-keeping is not just important for honey production but also for fruit trees, berries, shrubs and different agricultural crops – quite simply, bees take care of pollen transportation from plant to plant.

Honey bees, like grazing cows, benefit biodiversity. All the different plants, animals and organisms in Sweden are a part of nature’s cycle and important for nature’s ability to provide what we humans take from nature or from the ecosystem, so-called ecosystem services.The pollination by bees ensures the growth

of much fruit. Follow our work to help and protect bees at bravobieffekt.nu.

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Concern for the environment and climateAll food production affects the climate and milk production is hotly de-bated in this context. Milk production is responsible for less than 3% of total global greenhouse gas emissions and, according to a report from the Food and Agriculture Organization of the United Nations, emissions per kilogram of milk from Swedish milk production are 44 per cent lower than the world average.

We work at all levels in order to reduce our environmental impact, from dairy farm to consumer. Skånemejerier aims to constantly improve the efficiency of resources used and to reduce environmental impact concerning everything from, for example, noise reduction to renewable energy.

In recent years, owing to major expansions, a great deal of effort has been put into acquiring environmental permits for the Kristianstad and Malmö facilities. Such authorisations are required by the Swedish authorities under the Environment Act.

GLOBAL CLIMATE CHANGE WORK – AND WHAT WE ARE DOING

The world is facing a major climate challenge. During the COP21 climate summit in Paris in 2015, the world’s countries agreed on a new global climate agreement that will come into force from 2020. Among other things, if the agreement is followed, global warming is to remain well below + 2 degrees by 2100 compared with temperatures at the be-ginning of the industrial revolution. The world also adopted 17 global objectives for economic, social and environmental sustainable develop-ment to 2030.

Skånemejerier’s sustainability efforts contribute to the achievement of these global objectives. We produce nutritious, innovative, healthy products in a sustainable way to promote good health and healthy living. We place demands on raw materials and purchases in view of environmental, ethical and social aspects, such as labour relations and working conditions, as well as human rights. We are continuing our work towards climate-neutral production and reductions in resource consumption. To reduce the need for fossil fuels is a long-term environ-mental objective.

An environmental objective which we have already achieved is to reduce the relative CO2 emissions from production by 50% by 2020, compared to 2010. By relative, we mean emissions in relation to the production volume. Over the last four years, we have achieved a decrea-se of 66 per cent thanks to investments in renewable energy, both in Global goals for sustainable development.

OUR ENVIRONMENTAL

VISION”Skånemejerier is to be an eco-cycle-based dairy company. This means that we are to be independent of fossil fuels by means of utilising our waste products to produce renewable ener-gy, which can then be used throughout the dairy chain. In this way, we contribute to a sustainable society, from farm to store.”

22500

45000

67500

90000

’10 ’11 ’12 ’13 ’14 ’15

BIOGAS

DISTRICT HEATING

OIL

NATURAL GAS

GREEN ELECTRICITY

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the form of green electricity from hydropower and renewable fuels such as biogas and wood chips. Both large and small projects contribute to achieving energy savings, everything from installing energy monitors to new modern disk systems.

During major expansions, we are sometimes forced into ad hoc solu-tions that have an impact on our environmental objectives from year to year. In Malmö, we are currently using a number of diesel trailers owing to lack of space in existing warehousing. A number of these are to be connected to the electricity grid while others have been using HVO, a wholly renewable diesel fuel, since January 2016. Reductions in CO

2

emissions from these trailers is estimated at 88%. This will result in a total reduction of relative emissions from production of about 75 per cent, instead of the current 66 per cent.

HVO stands for hydrogenated vegetable oils, although not all the raw materials are always vegeta-ble based. HVO is a 100 per cent renewable diesel fuel and reduces the emissions of CO

2 by up to 88

per cent compared with fossil diesel.

The relative emissions of CO2 from

Skånemejerier’s transport have DECREASED BY 10% between 2010 and 2015.

The relative emissions of CO2 from

Skånemejerier’s production has BEEN REDUCED BY 66% between 2010 and 2015.

In that our overriding energy environmental objective has been achieved, we have developed a new measurable target: All production facilities are to reduce their energy consumption by 3 per cent per year by 2020 compared to 2014 – calculated as total energy per tonne of the raw materials. We are working with a clear action plan to this end.

Despite the fact that total energy consumption has increased by 14 per cent over the past five years, CO2 emissions have been reduced at the same time by 66 per cent. During the same period, relative energy use has increased by 12 per cent. This is the result of the expansion of more processed products, which require more energy than regular milk. We work constantly to save energy and to try to make use of alternative fuels. These are factors that play a major role for the environment while at the same time affecting our internal costs.

* Weighed raw material for Malmö concerns raw milk, for Kristianstad raw milk + skimmed milk and for Hjordnära raw milk + cream. * * Hjordnära Mejeri AB has increased its relative energy consump-tion due to large milk volumes moved to other facilities. Constant efforts are made to conserve energy.

Results 2014–2015

DairykWh/weighed

raw materials *

(2014)

kWh/weighed

raw materials *

(2015)

Target (2015)

Change in 2015

compared to

2014

Malmö Dairy AB 155 165 151 + 6%

Kristianstad

Dairy AB201 184 195 -9%

Hjordnära Dairy

AB235 323 228 + 38% * *

Energy distribution 2010-2015 (MWh)

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Skånemejerier’s other overriding environmental objectives are to do with transport - both when collecting milk from our farms and when distributing our products. The goal is to reduce the relative CO2 emis-sions from incoming and outgoing transport by 30 per cent by 2020 compared with 2010. Here, relative emissions means emissions in rela-tion to how much is transported. Since 2010, the rate of carbon dioxide emissions from transport has decreased by 10 per cent. The challenge of this target is a growing market which results in expanded distribution areas.

At the beginning of 2016, our diesel vehicles began refuelling with HVO, a 100% renewable diesel fuel, at Malmö Dairy. This will result in significant reductions in CO

2emissions and help us achieve the en-

vironmental objective for transport by the year 2020. More data will be collected during the year and the outcome of the transition will be presented in 2017. The goal is for 2000 m3 of diesel to be replaced by HVO in 2016.

INTERVIEW STIG OLESEN - PRODUCTION DIRECTOR AT SKÅNEMEJERIER

TELL US A LITTLE ABOUT YOUR ROLE AT SKÅNEMEJERIER.I am responsible for everything that is produced at our dairies, at our plants in Malmö and Kristianstad as well as in Hjo. This means that I, together with the industrial team, ensure that we process all the raw milk to make dairy products and cheeses in the quantities and qualities demanded by the consumers.

WHAT’S HAPPENING AT THE DAIRY AT THE MOMENT?We have expanded the dairy in Malmö to provide space for products previously produced in Lunnarp and have also brought the production of quark home from Germany. From an environ-mental perspective, we save quite a lot on transports this way. This production is based on new technology that leads to less waste. We have also built a brand new “Cleaning in place” station for cleaning tanks and pipes. When it is finished, the new building will lead to considerable savings in the consumption of electricity, water, chemicals and energy in the production process at Malmö Dairy.

WHAT RENEWABLE ENERGY SOURCES DOES SKÅNEMEJERIER HAVE AT THEIR PLANTS? GIVE US A FEW EXAMPLES.Energy at the cheese facility in Kristianstad is provided by wood chips, connected to the district heating system. Condensed milk, which was previously produced in Lunnarp, is now produced in Kristianstad and hence using renewable energy. The dairy at Hjo uses biogas from the farm where the dairy is located.

WOULD YOU MIND TAKING A SELFIE?Ha ha, yes, ok.

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A BRIEF HISTORY OF CLIMATE EFFORT

2009 A new filling station for CNG vehicle fuel is officially opened at Malmö Dairy. Now all our distribution vehicles can refuel in a more environmentally friendly way. Between 2010 and 2015 all gas-driven vehicles in Skånemejerier’s distribution network reduce emissions by approximately 2 000 tonnes of CO

2 in comparison with

diesel vehicles.

2010 Kristianstads Mejeri AB replaces oil with wood chips and reduces its carbon footprint dramatically. The decrease in oil usage together with the transition to green electricity means that hard cheese produced in Kristianstad in 2015 has a carbon footprint that is over 90 per cent lower than five years earlier.

2015 All company cars are replaced with green cars, reducing the emission of greenhouse gases on the replaced cars by approximately 2 700 tonnes per year.

2016 Skånemejerier offers all hauliers refuelling with HVO at the filling station at Malmö mejeriet. Theoretical calculations show that this will result in a reduction of our relative emissions by about 50% up to 2017, compared with 2010.

2011 Skånemejerier switches to electricity generated from hydropower in all produc-tion facilities, thus reducing its carbon footprint further. Between 2011 and 2015 Skånemejerier’s emissions decrease by app-roximately 60,000 tonnes of CO

2.

2012 The dairy in Hjo installs a gas boiler using biogas from the nearby biogas plant. The biogas plant also uses sludge from the dairy’s treatment plant as well as a certain amount of discarded products.

1995 The first gas driven trucks roll out from the dairy. Each truck means a reduc-tion of about 30 tonnes of CO

2 per year

compared to diesel. Following our invest-ment in gas-powered trucks in the 1990s, 15 years later we had reduced CO

2 emissions

by almost 25 per cent, in comparison with if all the trucks in Skåne had been run on diesel.

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TOWARD MORE RENEWABLE MATERIALS

Our cartons are mainly made from renewable materials – paper. Re-newable materials recycle CO

2 in the atmosphere and comprise orga-

nisms that can be reproduced in nature such as trees, plants and so on.

Utilizing renewable raw materials for plastic production means a big improvement from a climate point of view compared with conventional plastics made from fossil raw materials. The incineration of plastics made from fossil materials adds carbon, which was previously bound up in the Earth’s crust, to the atmosphere. This results in a net increase of CO

2 and other greenhouse gases in the

atmosphere.

In 2015 and 2016, we began using renewable plastic in a number of our packages:

• A renewable screw-top was introduced on Hjordnära organic milk.

• The cap on Bravo Eco and the two-litre packages of Bravo was replaced with a renewable screw-top, made of bioethanol derived from sugar cane.

• Åsens’ 0.9 litre milk carton was launched in renewable material made from bioethanol derived from sugar cane.

RECYCLING PROJECT – KARTONGMATCHEN

In the autumn of 2015, Skånemejerier participated as a partner in “Kartongmatchen”, a project run by Tetra Pak and the World Wide Fund for Nature with the aim of increasing the recycling of beverage cartons. Cartons provide valuable raw material for new products and are easy to recycle, which is good for the environment. 41,250 children and stu-dents took part in various carton recycling activities and the recycling rate has increased to nearly 40% in 2015. We believe it is important to spread knowledge about recycling so that more people recycle packs both at school and at home. In this way, we save energy and resources and reduce our own carbon footprint.

Happy winners with Kalvin Products from Skånemejerier at Hummelsta School grade 2 in Enköping.

TO

PP 30 2015

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SUSTAINABLE BRAND INDEX

Skånemejerier was ranked as the country’s 16th most sustainable brand out of a total of 253, according to Sweden’s consumers in the 2015 edition of the Sustainable Brand Index™. Looking at the food industry alone, Skånemejerier was placed 5th of 38.

The Sustainable Brand Index™ is Scandinavia’s largest brand survey of sustainability. On the basis of 27,000 consumer interviews, the study maps and analyses sustainability and brands from consumers’ reality and perspective.

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Our productsAll products in the range under the brand name Skåne Dairies are made from milk from Swedish farms. Our origins are in the soil of Skåne. We care about the open landscapes with cows grazing freely and want to see new generations of dairy farmers continue in the same way. This is the way it has been since 1964 and this is the way it will always be. Skånemejerier’s employees are ambassadors for our products and brands.

FOCUS ON HEALTH PRODUCTS

In 2014 and 2015, we continued to focus on health products. Skåne-mejerier has noticed an increased interest in products with high protein content and have therefore chosen to continue their development. Over the past two years, we have launched 30 new quark products and in 2015, there was substantial investment in the dairy in Malmö to enable the production of quark from Swedish milk.

We also note increased demand for products with less or no added sugar from a number of consumer surveys. In the autumn of 2015, Skånemejerier launched a new range, LC+ (Low Carb-High Protein), with products that contain a maximum of 3% carbohydrates and extra protein. Next year, we will be following up this trend by launching more products with less added sugar. The products will have 30 to 50% less added sugar than comparable products on the market.

FOOD SAFETY – IT GOES WITHOUT SAYING

It is of course important that our products are safe and of high quality. Work with quality assurance includes both internal and external audits. The externally performed audits have been carried out during the year with good results. Skånemejerier’s facilities (Malmö mejeri, Kristianstad mejeri and Kristianstad ostförädling) remain certified to BRC 6.0. At our Kristianstad facilities, an internal audit in respect of FSSC 22000 - ef-fective food security work - was also carried out. We are now preparing to convert to this standard at all plants in 2017. 2015 saw the introduc-tion of weekly and monthly sensory assessments in which our products are evaluated in a new, structured way. Sensory methods are a valuable tool for rapidly detecting deviations. A method to find the root cause of deviations, and thus take measures to avoid them, has also been introduced. The suppliers from whom we buy raw materials, packaging materials or products are visited and audited in accordance with a new, comprehensive system that was introduced in 2015.

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During the International FOOD Contest in Herning, the following products were awarded medals:

GOLD Vanilla and Pear Yoghurt

SILVER Vanilla and Strawberry Yoghurt; Lactose Free Vanilla Yoghurt; Soured Milk

BRONZE Semi-skimmed milk; Natural Yoghurt; Organic low fat Crème Fraiche

CLAIMS HANDLING

In 2014 and 2015, Skånemejerier improved follow-up of consumer claims. While every claim is dealt with separately, we also investigate if the same type of claim has been recurring over a longer period. This has resulted in our maintaining the same level in 2014 and 2015. This is despite considerable production changes at the dairies in both Mal-mö and Hjo. Ahead of 2016, we have set new challenging targets for fulfilling consumers’ expectations of our products. The goal is 3 claims per million sold packages. No products were recalled by Skånemejerier in 2015.

MARKET RESEARCH AND SENSORY TESTING

Skånemejerier conducted large market research studies during 2014 and 2015 to gain insights into future potential development and to tell how well our products meet consumer expectations in relation to quality. Among other things, Allerum ‘prästost’ received top marks and Bravo orange juice an excellent consumer rating.

LESS A, MORE D

In 2015, enrichment of dairy products with vitamin A was brought to an end in accordance with new EU legislation. Nowadays, the levels of Vitamin A needed to enrich milk are too extensive to be deemed suita-ble. Vitamin D enrichment continues, although changes are expected in 2016. More products will be enriched and the levels of vitamin D will be incre-ased to reach 20% of the recommended daily intake.

SKÅNEMEJERIER SHOWERED WITH AWARDS

The work to improve taste and quality has yielded clear results. We were given proof of this at the international dairy competition in Her-ning, Denmark, where, in 2015, we won several fine awards for our milk, sour milk products, and yoghurt and crème fraiche.

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INTERVIEW ANNA OLIW - HEAD OF PRODUCT DEVELOPMENT

WHAT’S YOUR ROLE?I’m head of the product development department, which works to develop new products and im-prove existing products at Skånemejerier. We’re quite a small group of five people and sometimes it can seem a little chaotic but this is to encourage creativity. In order to succeed in our work, we need to work very closely with the Marketing Department, Purchasing Department and Produc-tion.

HOW DO YOU GO ABOUT DEVELOPING NEW PRODUCTS?First of all, we try to identify what there is a need for and what consumers want. When we’ve got a clear idea, we take it to the test kitchen and test different ingredients, experimenting and tasting all the time to make sure it’s good. The number one priority is that it tastes good!

IS THERE ANY PARTICULAR FLAVOR COMBINATION THAT YOU ARE PARTICULARLY PLEASED WITH?I like the rhubarb/vanilla very much.

HOW DO YOU REGARD HEALTH-THINKING AND TRENDS?It feels like trends go very much in cycles. There’s been a great protein trend and now consumers have also begun to pay more and more attention to sugar – they want less of the white sugar. We try to develop healthy products that follow the Swedish National Food Agency (Livsmedelsver-ket) dietary advice but also listen to what consumers believe to be healthy.

WHAT DO YOU THINK WHERE SWEETENERS ARE CONCERNED?We are trying to minimise the amount of sweetening in all our products. Where it’s needed, we try to use fruit first and only then turn to ordinary sugar. More recently, we have seen increased demand for products with sweet taste and low carbohydrate content. In order to meet these requirements, we use different types of sweeteners.

WOULD YOU MIND TAKING A SELFIE?No trouble!

LINDAHLS’ QUARK - PRODUCT OF THE YEAR

Lindahls’ Quark was awarded Product of the Year 2014. This is an award for newly-launched retail products with the aim of highlighting the launches that have best succeeded. Lindahls’ quark has rapidly de-veloped the dairy segment and obtained a considerable market share. It meets consumer demand for products that are rich in protein but low in fat. The quark is manufactured at Malmö mejeri from Swedish raw milk.

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Purchase responsibility in the value chainThat the food you buy as a consumer is safe to eat is taken for gran-ted. These days, locally produced, organic products are increasingly in demand and companies are expected to be socially responsible and promote sustainable development.

A large part of Skånemejerier’s purchases involves raw milk. In order to be able to produce milk under the best possible conditions for the cows, the farmer and nature, all farms that deliver milk to us are quality assured by means of a third party. The certification means that Skåne-mejerier’s own consultants and independent auditors visit the farms to verify how they are operated. The results from each farm are carefully documented and followed up through regular visits.

In our product ranges, you find everything from local, organic products to affordable, imported high-quality products. This is done using separate brands with distinct profiles. It is extremely important that we exercise good control over the purchase of finished products and ingredients such as juices, fruit preparations, cleaning chemicals, energy and everything else needed to provide consumers with the products they want. To bring consumer expectations to bear on the company’s suppliers, Skånemejerier developed its own purchasing standard a few years ago, called SMWAY. This continues to match consumer demands and is used in the assessment of our suppliers and their products.

Since 2012, Skånemejerier has been part of Lactalis, a large multinatio-nal dairy company with French owners. The Lactalis group’s suppliers have long been subject to precise auditing in accordance with an app-roach based on various detailed factors of quality. These factors, which are agreed upon with the supplier, include for example product safety and environmental, ethical and social aspects. To ensure that the supp-lier fulfils its commitments, systematic and careful monitoring is carried out by means of, for example, inspection visits. These working methods are now applied in Skånemejerier and have helped improve our purcha-se procedures still further. In 2015, 11 suppliers, selected on the basis of their importance for the maintenance of good food safety, were visited. Similar visits of 17 suppliers are planned for 2016.

We at Skånemejerier are keen for all our suppliers to operate with the same high standards as we set for ourselves.

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FROM ORANGE PLANTATION TO TERMINAL

During the autumn of 2014, we visited three leading producers of orange juice concentrate in Brazil. The orange plantations, factories and harbor terminals of each of the suppliers were visited.

The visit gave us an insight into the work that lies behind the orange juice on your breakfast table. The focus during the visit was to see how companies relate to the concept of sustainability on the basis of the following points:

• QUALITY SYSTEM AND FOOD SAFETY

• ENVIRONMENT

• WORKING CONDITIONS

ORANGE PLANTATION

Orange cultivation in Brazil is big business. Farms of around 700 hecta-res to as large as 5,000 hectares were included in the visit. About half the farms are owned by juice companies and the other half by indepen-dent growers who sell fruit to the companies. Under Brazilian law, 20% of the total area must remain ‘natural vegetation’. This is to benefit the natural flora and fauna. Where irrigation is needed, the water comes from nearby rivers and the amount being used is regulated by law.

The plantations are divided into blocks that are harvested separately. This system allows full traceability – from a given block, one can follow the oranges through the factories all the way to the terminal and then on to the juice manufacturers in Europe.

The oranges are picked by hand and orange-picking work can be pretty hard. But staff at the farms we visited, both permanent and seasonal workers, are undergoing training programs and receive safety training. They use protective clothing, have access to mobile toilets and break rooms and are guaranteed the minimum wage. The Brazilian Govern-ment also undertakes audits on farms to ensure that the country’s labour legislation is respected.

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FACTORIES

Trucks leave the farms with freshly picked oranges that are immediately offloaded, weighed and pressed into orange juice the moment they arrive at the factories.

Brazilian legislation operates in the factories too, meaning that work with safety and the working environment is structured. Protective clothing is used and fire extinguishers and emergency exits with accom-panying information are clearly positioned in the factories. Waste is sorted and all chemicals used are labelled. The factories we visited also work to make the most of raw materials and resources. Water released when making concentrate is used as process water in the factory. Peel and seeds are collected during the process and pressed into pellets that can be used as animal feed or for energy recovery.

TERMINAL

Pasteurised orange juice concentrate, as well as NFC (Not From Concen-trate), is sent by truck to the terminal at Santos. Here, the raw mate-rials are stored in large tanks awaiting shipment to Europe and other continents.

It is important to ensure product quality at the terminal, for example by maintaining the correct temperature and keeping deliveries apart for total traceability. Work at the terminal is largely automated.

Bravo is Sweden’s first and big-gest juice and has been a must on breakfast tables around the country for more than 40 years. Back in 1973, the BRA in BRAVO indicates that the juice originates from Brazil.

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2,90 %

20142013 2015

2,70 %2,60 %

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Our workplacesIt is crucial to our business that our 600 or so employees feel well and thrive at work. Our employees are Skånemejerier’s best ambassadors. It is therefore important that we work together to create the best possible workplace on the basis of well-being, participation, health and safety.

I FEEL GOOD – FOR BETTER HEALTH

Skånemejerier works with health in different ways – for example by inn-ovative work and the development of new products and by promoting an active and healthy lifestyles among children and youths. In 2015, we addressed our ‘I feel good’ health initiative to our employees.

The health initiative included:

• CREATING HEALTH PROFILES WITH THE OCCUPATIONAL HEALTH NURSE, REVIEWING HEALTH STATUS AND EN-COURAGING ANY PREFERABLE BEHAVIORAL CHANGE.

• LECTURES ABOUT DIET, TRAINING, STRESS AND MIND-FULNESS.

• MORE HEALTHY FOOD OPTIONS BEING AVAILABLE IN STAFF CANTEENS.

• YOGA AND CORE TRAINING AT THE DAIRY IN MALMÖ.

Employees are also offered health care allowance and access to fruit at work as well as subsidised massage during working hours.

OUR ANNUAL EMPLOYEE SURVEY

For the 2015 annual employee survey, which measures reputation, management, cooperation, daily work and personal development, the response rate was 87%. This is an increase on the previous year when 79% of employees took part. Each department will undertake further work in the light of their results and design action plans for the areas upon which they wish to focus. Skånemejerier continues to improve communication within the compa-ny in a variety of ways. We will also continue work to spread informa-tion about Skånemejerier diversity and anti-discrimination policy and our Code of Conduct throughout the year.

PRODUCTION UNITSMALMÖ DAIRY AB

Products: Milk, cream, soured milk, yog-

hurt, quark etc.

Production: Ca. 230,000 tonnes/year

Number of permanent employees: 242

KRISTIANSTAD MEJERI AB

Products: Hard cheese such as Allerum

and Skånemejerier Präst, Herrgård and

Grevé.

Production: Ca. 13,000 tonnes/year

Number of permanent employees: 76

KRISTIANSTAD OSTFÖRÄDLING AB

Products: Cutting, slicing, grating and

packaging of hard cheese.

Production: Ca.13 000 tonnes/year

Number of permanent employees: 48

HJORDNÄRA MEJERI AB

Products: Milk, cream, sour milk, yoghurt

etc.

Production: Ca.12,000 tonnes/year

Number of permanent employees: 17

Sick leave among our employees is in constant decline.

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NEWLY FORMED DIVERSITY GROUP

In the spring of 2015, a diversity group with representatives from va-rious Skånemejerier’s departments was formed. For us, it goes without saying that diversity enriches, brings the company benefits and creates development opportunities. Skånemejerier does not accept, and takes discrimination, bullying and harassment of any kind seriously.

The group works on the basis of the premise that all human beings are of equal value and that every person should have the opportunity to develop in line with their own abilities. The diversity group’s task is to develop an action plan and a diversity and anti-discrimination policy and to increase awareness of the issue among all employees. The policy will apply to all departments and monitoring and development will take place on a continuous basis.

”The Skånemejerier Group seeks an inclusive work environ-ment where all employees are to be treated on an equal footing with respect, consideration and appreciation for the individual. By taking account of and embracing our diffe-rences, we have the opportunity of gaining wide and varied experience – which is a significant asset. Through diversity in our company, we get a larger and wider understanding of our customers and world markets, thus, increasing the com-pany’s opportunity for growth. “

PERFORMANCE APPRAISALS AND PERFORMANCE MANAGEMENT SYSTEM

All employees participate every year in a performance appraisal with their immediate manager. The talks aim to ensure that all employees have an annual dialogue with their manager about their performance, development, strengths and potential development. Performance app-raisals occur on the basis of a model in which the work environment, health, well being and management are assessed. During 2014, a new so-called Performance Management System was introduced for parts of the organisation on the administrative side. This will ultimately be implemented further and may come to replace our previous approach of performance appraisals for these employees. The system includes a complete process for evaluating performance and values. The perfor-mance is evaluated in relation to individual and collective goals which are set and assessed. Evaluation of values is undertaken in relation to our corporate values. This process leads to a personal development plan and to a section where the employee describes his/her view of the development sought and possible next steps.

The diversity group, from left: Annika Mår-tensson, HR, George Alajehji, warehouseman, Pune Naoumov, technical project manager and Niklas Weberg, salesman Catering.

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Equal distribution of women and men in the management group.

The system also includes job descriptions that describe competencies that are specific to the individual employee’s position. The system also allows employees to upload their CV and to register information about their ability and interest in working abroad. This is a global system that is used throughout the Lactalis Group.

FOCUS ON INTERNAL COMMUNICATIONS AND EMPLOYER BRANDING

In 2015, we had a specific focus on further increasing cooperation and communication internally. This is something that we will continue to focus on in the future. In order to communicate the company’s vision and objectives clearly, it is important for all employees to feel involved and to work in line with the strategy. It is additionally useful if employ-ees participate in culture-building and that we all feel involved in, and responsible for, sustainability issues.

”We build brands through storytelling and relations origina-ting from our culture of caring, being resourceful and exerci-sing entrepreneurship.”

MANAGEMENT BLOGS

Skånemejerier’s CEO, Bjorn Sederblad, has been blogging on our in-tranet since 2010. During 2015, the entire management blogged with individual posts. They have each presented themselves and blogged about ongoing work in their respective area or department. Posts have been very appreciated by the employees and this is a successful app-roach that we will continue with in 2016. We are also developing our in-tranet more – both to contribute to increased cooperation and greater communication internally and to improve media monitoring.

#MEANWHILEATSKANEMEJERIER

What do days look like in the Marketing Department, in the warehouse in Production, HR and, why not, the Finance Department? Meanwhi-leatskanemejerier, the employees’ own Instagram account, can show you. The account was opened at the end of 2015 and since then we have been giving each other glimpses into the daily life of a “Skåne Dairist” and providing answers to questions like: What does a cheese proces-sing plant look like? What do you do as the project manager for digital media? And who is actually on the CSR team?

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INTERVIEW PHILIPPINE BOUVIERIn the autumn of 2015, the marketing department at Skånemejerier had the opportunity to recei-ve an intern from France. Philippine Bouvier, who is 19 years old and studying communication at Laval, has been with us for two months.

WHAT DO YOU THINK OF SWEDEN AND SWEDISH PEOPLE?I have discovered that Sweden is a beautiful but very cold country. I like the Swedish people because you are helpful and nice and I have met really nice people here.

WHAT HAVE YOU DONE DURING YOUR INTERNSHIP? I have done a lot of different things. I started to interview a lot of employees. That was easier than I thought because everyone at Skånemejerier was so glad and proud to talk about their work.

I was part of a big event in Stockholm. We were at the central station and distributed the prod-ucts, offered cheese and milk. With us were also farmers who supply Skånemejerier with milk. It was very interesting to see the meeting between the farmers, Skånemejerier and the consumers.

I have discovered 3 really important things related to communication. First, you are a modern company and have many channels for social media. Second, it´s your close relationship with your farmers and your work with animal welfare. Third, it´s your transparent relationship with your consumers and your future consumers.

WHAT IS YOUR IMPRESSION OF SKÅNEMEJERIER?The relationships in the company, the way things function between the different members of the company and the absence of real hierarchy between the employees. Everybody is simply work-ing for an identical objective, no matter what his/her position in the company could be. This has made a strong impression, because it is so different from what I have seen in French companies so far.

WILL YOU MISS ANYTHING?It has been an enriching experience for me both personally and also professionally. I will come back home with very good memories from you, your company and your country. I will remem-ber your welcoming and your friendship. I love Swedish food now, especially meatballs!

Our unique traceability system.

10 000

20 000

30 000

40 000

50 000

FARM VISISTS

VISITORS 2011–15

OPENING OF THE PASTURES KALVINKNATET

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Our role in societyBeing involved in the surrounding community is important for a com-pany like Skånemejerier. We want to build long-term relationships with people, companies, organisations and schools. The aim is to contribu-te to the development of society, all the way from the dairy farm to the consumer. Our dairy farmers produce high-quality, Swedish milk and create jobs in rural areas. At the same time, they open up their dairy farms to the public in order to spread knowledge of the origin of the milk, the cows‘ well-being, life on the farm where the milk is produced and the work behind every litre of milk. As a dairy company, and alongside our suppliers, we contribute to the creation of jobs in the region and economic growth. We want to promote an active and healthy lifestyle and offer our consumers safe, innovative and healthy products. We are committed to children and young people’s physical and mental health and to contributing to a healthy lifestyle, which includes everything from good eating habits to exercise, enjoyment and togetherness. Our work on sustainable development ensures care for the animals, nature and you.

MORE AND MORE VISITORS AT OUR EVENTS

Many consumers want to know where and by whom the milk on their breakfast table has been produced. There are different ways of finding out. By entering the date code on the milk carton, either on our web-site or through our App, you will be presented with text and images of the farms that delivered the milk in your carton. You can also visit the events that we arrange with our dairy farmers. Thousands of curious people visit our farmers annually, during the popular ´kosläpp´ in the spring, for example. School classes can make field trips to our “visitor farms” and on “Open farm days” some of our milk suppliers open their farms for a day. In addition to activities organised by the farmers them-selves, such as guided tours in the cattle stalls, hay-jumping and coffee sales, Skånemejerier are on site with tasting of various dairy products, treasure hunts and other activities.

Interest in these events is tremendous – local milk and the local coun-tryside are of great value for our consumers.

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KALVIN AND KALVINKNATET

Kalvin is one of Skånemejerier’s most important employees. Since 1998, he has represented the very best sides of Skånemejerier. Kalvin is a happy symbol of good health, exercise and zest for life. Kalvinknatet is a race for children that we have organised each year from 2002. The aim is to encourage children to exercise in a fun way. Everyone can join in and all runners receive a t-shirt and a medal. In 2015, the race was held at 20 locations in southern Sweden and in Stockholm. The com-petition is organised in cooperation with Malmö Sports Club, MAI, and other local sports clubs. We hand out chocolate milk at the finishing line. In 2015, nearly 30,000 children took part, from preschool up to 5th grade, which is an increase of 34 per cent on the previous year. Given that it’s a family occasion, we reach perhaps as many as 90,000 people with our messa-ge about the importance of exercising. All surplus goes directly to the sports clubs’ youth activities.

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SKÅNEMEJERIER IN THE CAPITAL

As part of our expansion in the Stockholm area, and in response to growing numbers of grocery stores choosing to switch to Skåneme-jerier as their main supplier, we wanted to meet our new consumers, present ourselves and our farmers and provide an opportunity for open dialogue on everything from the price of milk and our products to their distribution. For this reason, we kept a large milk and cheese stand at Stockholm Central Station for three hectic days in November. Here we enjoyed many interesting conversations with old and new consumers, suppliers, officials and journalists, adults, children, millennials and dogs. In addition, we handed out our new drinking quark LC+ to commuters in the metro, which was very much appreciated.

We are very proud to be able to guarantee Swedish milk in all our products and ranges under the Skånemejerier brand, which is one of the reasons for the huge demand for Skånemejerier’s products in other regions.

TASTE OF SWEDEN

Every year around 1,900 exchange students come to the University of Lund. To make them feel welcome and to get them acquainted with the new, unknown food in Sweden, Swedish students arrange a food fair with information and samples. It is fun for us as an exhibitor to see their happy faces when they taste good, healthy, locally produced pro-ducts and we get to talk food with young people from all over the world.

RIDE OF HOPE: TEAM SKÅNE

Skånemejerier is a proud sponsor of Ride of Hope Europe: Team Skåne. Ride of Hope is a cycle race where participants cycle as much with their heart as with their legs. Over the course of a year, they train and collect money in teams on behalf of the Child Cancer Foundation and research on child cancer.

To round off their efforts, Team Skåne cycled 1000 km to London through England and Wales during July 2015. There are many enthusi-asts who collect money for vital research.

In this context, Skånemejerier’s children’s mascot, Kalvin, is an obvious partner and, dressed in his own cycle kit, he has been at the cyclists’ side at meetings and fundraisers and during the great race through the United Kingdom. In 2015, Team Skåne contributed SEK 981,000 to the fund. In 2016, Team Skåne will be cycling from Prague to Varberg to spread awareness about childhood cancer and the Child Cancer Foun-dation.

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THOMAS BECHER, ENGINEERING TECHNICIAN AT SKÅNEMEJERIER AND MEM-BER OF RIDE OF HOPE: TEAM SKÅNE, WHICH THIS YEAR WILL BE CYCLING FROM PRAGUE TO VARBERG FOR THE CHILD CANCER FOUNDATION.

WHY DID YOU SIGN UP FOR THIS?I am very interested in cycling and since one of the company’s employees had contact with cyclists in Eslöv, I got the opportunity to join in with a training ride. Then I discovered the close cooperation between Skånemejerier and Ride of Hope. I started training a bit more with this gang, and after a few months my wife and I both applied to join the team; we’re now working actively to raise money for the Child Cancer Foundation.

WHAT HAS IT GIVEN YOU SO FAR AND WHAT DO YOU THINK IT OFFERS YOU IN THE FUTURE?It has given me a sense of togetherness but also more knowledge about diseases, particularly about cancer. There’s great openness about it, which I wasn’t previously used to, and I now understand that it’s important to talk about it. When, for example, a child gets ill, a lot of people around them are affected. We meet a lot of people with a great need to talk when we are out fundraising.

HAVE YOU DONE ANYTHING LIKE THIS BEFORE?We’ve been on cycle trips before but not in this format with so many people and over such long distances. For example, there’ll be 160 of us cycling home from Prague over the course of 7 days.

HOW DO YOU PREPARE FOR THE JOURNEY?Mainly through lots of training. We meet and train together several times a week, indoors during the winter. We also put in a lot of time rattling our collecting tins and giving information at shop-ping centers, trade fairs and places where lots of people gather.

WOULD YOU MIND TAKING A SELFIE?Absolutely!

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SKÅNEMEJERIER STORHUSHÅLL (SKÅNEMEJERIER FOOD SERVICE) AND PROFESSIONAL CULINARY TEAM

Skånemejerier Food Service is the part of our business that addresses professional users of our products. With the professional kitchen’s parti-cular conditions and needs as its specialist area, Skånemejerier Storhus-håll is able to continuously develop its product ranges in collaboration with skilled chefs, dietary managers and purchasers.

NEW FLAVORS AND TRENDS INSPIRE

We work constantly to inspire new trends in Swedish cooking. By sup-porting some of Sweden’s best professional culinary teams, Skånemeje-rier Food Service is able to offer exciting new flavours while our products are represented at the culinary olympics and the World Championships in cooking. It is first and foremost the Scanian cream, milk and soured cooking products such as crème fraiche and cooking yoghurt that the chefs use in competitions around Europe. Allerum’s matured cheeses, however, are also used extensively by the teams.

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IN 2014–15, SKÅNEMEJERIER FOOD SERVICE COLLABORATED WITH:

THE SWEDISH JUNIOR CULINARY TEAM.The Swedish Junior Culinary Team achieved top rankings in all com-petitions they took part in. Their biggest triumph so far is the gold at the Culinary Olympics 2012 in Erfurt, Germany. The team’s mem-bers are between 18 and 23 years old.

SKÅNE KULINAR Skåne Kulinar is Skåne’s own regional culinary team. The team’s goal is to highlight Skåne as one of the premier food regions, both in Sweden and internationally. The team’s most important events are the culinary olympics, at which they took silver in 2012, and the culinary world championships, where they won the gold in 2014.

CULINARY TEAM, WEST OF SWEDEN Culinary Team West of Sweden is a regional culinary team which has competed on behalf of Västra Götaland County and Halland since 2002. Their purpose is to strengthen the status of the cooking profession and to raise the culinary skills of the team members. The team has taken silver at all the culinary world championships and Olympics since 2006.

STOCKHOLM CULINARY TEAM The Stockholm Culinary Team cemented their place in the world elite when the Culinary World Cup in Luxembourg was decided in 2014 and the Olympic gold in 2012 was followed up with gold at the World Championships.

We will continue to support all four teams in 2016. In October, the 2016 culinary world championships will be taking place at Erfurt, Ger-many, and we hope that many medals will come the way of our highly merited culinary teams.

PARTNERSHIP WITH THE TRADE ASSOCIATION KOST & NÄRINGKost & Näring is the trade association for dietary managers and, besi-des organising seminars and congresses for its members, it also deals with questions relating to public sector meals. Skånemejerier Stor-hushåll participates in Kost & Näring as a so-called Gold Partner. This provides us with a channel of communication to many of our major customers. We meet regularly and maintain close dialogue about what is happe-ning in the market, which products and concepts are being used and what is lacking or needed. We are also involved as an exhibitor at ‘Diet Days’ which Kost & Näring organises every year. Diet Days is a large conference for dietary managers and others who work with public se-ctor meal provision.

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SUPPLIER OF THE YEAR Chefs, waiters, restauranteurs and suppliers gather each year at the Restaurant Gala to celebrate those within the industry who should be celebrated. Skånemejerier Storhushåll was nominated in the prestigious category ‘Supplier of the Year’. We emerged with victory, so Skånemejerier can rightfully call itself Supplier of the Year 2014. The prize is proof of high quality products and close work with our customers. The prize also encourages us to continue delivering high-quality products with quality service to the professional kitchen.

THE JURY STATEMENT “Skånemejerier cares about the Swedish dairy farmer and diversi-ty on the Swedish dairy market. Their range of fresh produce for restaurants and food service is developed in cooperation with cooks, chefs, dietary managers and purchasers in order to meet the high demands of a modern professional kitchen.“

MUSIKHJÄLPENMusikhjälpen is a fundraising event arranged by SVT, Swedish Radio P3 and Radiohjälpen to draw attention to forgotten humanitarian disas-ters. The theme in 2014 was to stop the spread of HIV and Musikhjäl-pen raised around SEK 34 million. Skånemejerier Storhushåll supported the event by supplying dairy products to the food tent, all the earnings from which went directly to the cause. Sales in the food tent in 2014 raised SEK 709,000 for Musikhjälpen.

LOOKING AHEADSkånemejerier Storhushåll will continue its close cooperation with some of Sweden’s foremost chefs and pastry chefs. At the 2016 big spring trade event, GastroNord, in Stockholm, the Swedish Junior Culinary Team will be present at our stand. There they will be presenting exciting new recipes based on Skånemejerier’s cooking products and cheeses. Along with the winner of “Dessert Masters 2015”, Martin Morand, we will be presenting lots of exciting new desserts equally suitable for both restaurants and retirement homes.

Inspiring new trends is something we are constantly working on. Prote-in-rich products and new variations on the classic Swedish cream bun are two trends that we brought together this year to create the Quark Bun. This is a healthier alternative to the classic bun where quark re-places the liquid content of the bun dough, complementing, moreover, the whipped cream of the filling. The result is a bun with a lovely, fresh flavour and less fat, and with more protein as a bonus.

From left: Patrik Hagberg, Sales manager, Ca-tering, Madelene Risén, Marketing manager, Catering, Carina Kvarnbro and Leif Kahlson, Sales personnel, Catering.

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Stakeholders

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Stakeholder dialogue and materiality analysisAt the end of 2015, we undertook a so-called materiality analysis - a prioritisation of the areas/aspects that are most important for Skånemejerier to work with and communicate. Part of the analysis was undertaken internally, in Skånemejerier’s CSR team, and part was done externally by various stakeholders. Through dia-logue with our stakeholders we learned how our current sustainability efforts are regarded by different groups that are in contact with our business, and what hopes and expectations they have of us in the future. Those interviewed included, for example, corporate executives, suppliers, local authorities, haulage companies and students. Materiality analysis is a process in keeping with the Global Reporting Initiative guidelines on sustai-nability reporting, G4, which inform the whole of Skånemejerier’s sustainability report.

From the results, four aspects emerge that both our stakeholders and we at Skånemejerier regard as most important: good animal welfare, product safety, labelling of Swedish products and locally produced milk/trace-ability. These are areas where we are strong today and where we will continue to maintain focus. You can read about these aspects in the sustainability report.

1. Locally produced milk/traceability

2. Risks relating to climate change

3. Healthy products

4. Working environment – e.g. work-related injuries

5. Product safety

6. Environmentally friendly packaging materials

7. Product labelling

8. Career and staff development

9. Emissions of CO2 (prod. and transp.)

10. Diversity

11. Non-discrimination

12. Cartels or the like

13. Good animal welfare

14. Different feeds purchased by farmers

15. Anti-corruption

16. Organic production

17. Payment to suppliers (dairy farmers)

18. Labeling of Swedish dairy products

19. Consumption of natural resources

20. Support of charity organisations

21. Product development

22. Responsibility in the value chain

23. Social projects in our local areas

24. Eco-labelled chemicals

25. Dairy farming’s environmental impact

Aspects towards the right-hand corner are those that both stakeholders and our CSR team value most.

Skånemejerier

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