R2 Group CSR Report

Sustainable [Købmandskab]

Corporate Social Responsibility

The CSR process R2 Group has been certified

by Green Network for having completed the e4-process with the purpose of developing a robust CSR program where essential key action areas have been identified and integrated into the company producing positive results for both R2 Group and its surroundings.

The certificate is open to an annual check-up procedure

by Green Network.

What is Sustainable [Købmandskab]?

Sustainable [Købmandskab] is how we see Corporate Social Responsibility (CSR). It is not new to R2 Group!

Behaving responsibly and with respect for each other and the environment combined with a sound trading mentality has always been part of doing business the R2 way. What is new is that we have chosen to work more strategically with CSR and to analyze which areas create value for our surroundings and for R2 Group. We wish to contribute positively to our surroundings and to minimize our footprint, but it will always be with a business perspective in mind, since we also believe CSR to be a good business when it is done the R2 way.

In this leaflet we list the CSR topics which will be our focus areas in the years to come. It will be an ongoing process where we will continue to improve and learn as we go. The leaflet will also be the forerunner of our CSR report which will inform thoroughly about our goals and achievements.

Below each focus area we have listed why we have chosen this area, where we are today, and our intentions within this area. We wish to keep CSR simple and tangible – in accordance with the R2 way!

Definition: [Købmandskab] … Is the Danish concept of trading mentality. It is based on mutual trust and long-term personal relations, and insists on that all parties involved in a business should benefit from it.

It combines simple common sense with business flair and innovation.

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Our foundation Before presenting our focus areas we provide a short introduction to the foundations of R2 Group from which all strategies including our CSR strategy arise.

Though we have changed our company name and even our location a few times since 1884, we have always stayed true to traditional virtues such as [Købmandskab], personal relations, trust, and integrity. We are highly aware of our identity, but the world around us is not static and we have always been able to spot trends and tendencies and to convert them into innovative solutions for the benefit of our partners.

Above all, we take pride in standing out from the rest; we dare to be personal and different, and developing and nurturing personal relations is the cornerstone of our business.

Values

Vision

Business Par re

+ er tn

We a

Mission

Focus on People

Freedom with responsibility

Professionalism Leadership

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We strive to be an independent and preferred partner to the global B2B industry

A sound and inspiring work environment and a responsible workplace WE CARE about our employees, and they care about R2 Group! One of our cultural values, “Focus

on people”, emphasizes this fact, and we do have a group of very committed employees. It is therefore important to encourage a reasonable work/life balance and ensure a sound and inspiring work environment. We also care about our local surroundings and take responsibility hereof.

Being able to attract, develop and retain the right employees is of vital importance to succeeding in business today.

Today:

Our intention:

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R2 Group wishes to be one of Denmark’s best workplaces. We will focus on developing our employees, decreasing absence due to illness, and ensuring a safe work environment.

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Every 2nd year we conduct an employee satisfaction survey and participate in Denmark’s Best Workplaces.

We set up goals and focus areas in order to continue to improve.

Each year all employees at R2 Group have two individual employee interviews which focus on development, strategy, work/life balance and job satisfaction.

We have heart defibrillators at all of our sites and we have trained our staff in using them. First aid courses are also held regularly at our sites. Our employees are covered by a collective accident insurance.

Our own R2 Active Kids Foundation was established in 2011 with the purpose of promoting health, physical activity, and learning to children and youngsters, and our main ”target group” are the children of R2 Group’s employees. Through the years we have been supporting many different initiatives from our employees such as regular sports activities, scouts, movement projects, etc., and we are very much devoted to our R2 Active Kids Foundation.

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Raw materials and ingredients meeting the needs of the future WE CARE about the planet and aware that we need to find substitutes for many raw materials - either due to a future shortage or due to the damage inflicted on the environment. We also care about people and wish to ensure the possibility of choosing healthy alternatives to many products. Healthy, green and natural solutions are in great demand globally, and the market is growing with each passing day.

Today:

Our intention:

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R2 Group will develop and distribute raw materials and ingredients which are customized for the future! We will create new natural, green and healthy solutions for the food, pharmaceutical and chemical industries well in advance of the consumer needs that will undoubtedly arise. In fact, in accordance with our cultural value of “Leadership” we intend to become a market leader within raw materials and ingredients that meet the needs of the future!

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Healthy alternatives to traditional ingredients reducing sugar, salt or fat Natural ingredients Organic ingredients and raw materials Green alternative products including but not limited to: > MIT-free (without Methyl-isothiazolinone) products > Certified green epoxy resins > Green anti-microbials (metal-free, non-leaching) > Green sugar tensideso We participate in relevant seminars and continuously improve by learning, educating our employees and seeking information.

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Ensuring product safety and traceability WE CARE about delivering products which do not pose a risk to end consumers, and therefore we guarantee high quality with full traceability of all raw materials and ingredients from R2 Group. Doing business in growth markets may be challenging in terms of transparency and documentation, but we only source and deliver products which live up to our high standards and comply with the current legislation.

Today:

Our intention:

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Being on top of product safety and traceability regulations and standards is in line with our cultural value of ”Professionalism”, and we therefore wish to refine our procedures and ensure a short response time towards our customers. We spot business opportunities as well as possibilities of cutting costs by improving within product safety and traceability.

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We are certified in accordance with ISO 9001 which demonstrates our commitment to continuous improvement and assurance of conformity to regulatory requirements.

We are certified in accordance with ISO 22000 which demonstrates our ability to control food safety hazards in order to ensure that food is safe at the time of human consumption.

As part of our ISO 22000 certification our production units are HACCP (Hazard Analysis and Critical Control Point Systems) approved ensuring an integrated control system of food safety at all stages of our production and distribution chains.

We are FDA approved and are therefore allowed to sell food ingredients and other products to the US.

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Responsible vendor management WE CARE about ensuring human rights and working conditions and believe in behaving decently in all corners of the world. R2 Group is a company of strong values which make up the backbone of our work with integrity and quality throughout the value chain. Doing business with R2 Group means that we handle the risk posed when buying raw materials from growth markets.

Today:

Our intention:

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We will prepare and introduce R2 Group’s Code of Conduct and ensure that all R2 Group employees know our Code of Conduct and behave accordingly.

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As a member of RSPO (Roundtable of Sustainable Palm Oil) R2 Group is committed to ensuring a sustainable production of palm oil.

In accordance with our ISO certification suppliers are screened and approved by our quality department to ensure that they comply with our standards and current legislation.

As a supplier we are approved in accordance with Responsible Care, and in that context we are SQAS certified. The Responsible Care program promotes improvements related to safety, health, and environment within the chemical industry.

We are FDA approved and are therefore allowed to sell food ingredients and other products to the US.

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Using the resources of the world effectively and responsibly WE CARE about the environment and our planet which is experiencing a growing world population and climate changes. This means a growing demand for and pressure on the natural resources of the world.

Focus on renewable resources is therefore essential, since prices on traditional resources will increase accordingly.

Today:

Our intention:

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R2 Group wish to reduce our environmental footprint to a minimum by scrutinizing our transport solutions, our sources of energy, our resource consumption etc. From a business perspective this makes perfect sense, as we will focus on reducing our costs simultaneously and thereby ensure that we can deliver ingredients and raw materials to our customers at the right price.

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We are a member of the association Green Network, which focuses on four dimensions of CSR: Environment, health promotion, social commitment, and occupational health and safety. In connection with our membership of Green Network we create an annual environmental report, analyzing our environmental impact and setting up goals for the years to come.

In accordance with the goals set up in our environmental report through Green Network we have focused on reducing our consumption of water, electricity and fossil fuels.

As a supplier we are approved in accordance with Responsible Care and in that context we are SQAS certified. The Responsible Care program promotes improvements related to safety, health, and environment within the chemical industry.

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Avoiding cartelization and corruption WE CARE about corporate ethics and ensuring a sound business practice which is part of doing business the R2 way. In Denmark, corruption and cartelization is prohibited by law and thus not an issue in practice, but we are increasingly doing business in growth markets which do not have the same traditions of corporate ethics.

Today:

Our intention:

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We will prepare and introduce written policies for cartelization and corruption, and train our employees in the policies to ensure that these are followed.

We obey EU and Danish law which prohibit corruption and cartelization.

• Regardless of national legislation in the market where we do business, we do not participate in any kind of cartels, and we do not accept or make use of bribery.

• Within the external supply chain we monitor our suppliers in order to identify and eliminate corruption through regular visits and audits.

• Through our memberships of different trade and national associations we ensure that we are in control of legislation, standards and future developments. We participate in relevant expert discussion forums within these associations. Some of them are listed here: > Dansk Erhverv (the Danish Chamber of Commerce)

> The Danish chemical association Kemi & Life Science

> FECC, the European Association of Chemical Distributors

> Danish Flavour Organisation

> Green Network (CSR organization)

> Dansk Fødevareforum (Danish Food Forum)

> ICCTA (the International Council of Chemical Trade Associations)

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