LANDMECO A/S is Scandinavia’s largest producer of poultry equipment. We have been designing and manufacturing our products for the poultry industry for over 40 years. From the start, our ambition has been to create products that are not only good for the birds, but also are functional, reliable, and provide our customers with good value for money. We achieve this by working closely together with our customers, by thinking smarter, and by constantly striving for better solutions. At LANDMECO, we prioritize our customers; they are the focal point of everything we do, including product development, procurement, construction, and installation.
Do you want more information?
If you need further information about this ESG report, please feel free to contact CEO Anders Kristian Andersen at +45 22 24 20 27. This ESG report is also available on our website: www.landmeco.com.
Preface
LANDMECO at a Glance
Vision, Mission, and Values
Our ESG Strategy
LANDMECO in Numbers LANDMECO ESG Risks
PREFACE
LANDMECO is experiencing solid development and growth across all areas, broiler, layer, rearing, and breeder. Our innovative solutions for the poultry industry are delivered worldwide, where we always stay close to our customers through our market presence and especially through our dealers, who are closely connected to LANDMECO.
No matter which area our customers are within we always focus on creating the best possible end results for our customers. We achieve this with the least possible use of resources, both economically, timewise, and with a focus on the environment. Through this, we strengthen our customers' competitiveness.
We always strive to be flexible in our approach to our customers, which is why at LANDMECO, the journey from idea to action is short. We always start with the market and our customers' needs in mind. Therefore, we work closely with our customers in all aspects from idea to finished product. In this way, we ensure solutions that work for our customers and provide them with high production efficiency.
At LANDMECO, we place great emphasis on optimal operation at the local farmer. This is an essential part of our approach to product development and crucial to the service we offer our customers. Therefore, we ensure that the service offered through our dealers around the world is at a professional high level, it is flexible, and that the service is offered when the farmer needs it. The same applies to the Danish market, where we over the past few years have expanded the service department and introduced around-the-clock service.
Our foremost task is to always be proactive and meet our customers' changing wishes and needs in the many different markets where LANDMECO is repre-
sented. Our size becomes our strength here and especially with our production placed in Denmark, it allows us to maintain a high level of dynamism, innovation, pace, and adaptability, which are crucial for staying ahead. Particularly, it enables us to provide our customers with high quality products, focusing on optimal yield and animal welfare.
Another important focus area at LANDMECO is our sustainability and our impact on future generations. We have therefore developed an ESG strategy, which forms the basis for the company's forthcoming work in this field. Our ESG strategy is centered around sustainability and responsible production practices. We are committed to minimizing our environmental footprint by implementing energy-efficient technologies, reducing waste, and switching to renewable energy sources. We prioritize the well-being and safety of our employees and diversity on our board. Additionally, we actively engage with our suppliers to foster ethical business practices and contribute positively to the communities in which we operate.
In connection with the ESG strategy, we have pinpointed from the UN's Sustainable Development Goals three areas with special focus:
• SDG 2 – Zero hunger
• SDG 7 – Affordable and clean energy
• SDG 8 – Decent work and economic growth
This report is based on the fiscal year 01.01.202331.12.2023. Our goal is to continuously improve our responsibility for the environment, our responsibility to create a good workplace, and the management of LANDMECO. We believe that we can create a more sustainable future by taking responsibility for our actions.
We hope that you will read our ESG report with great interest.
Anders K. Andersen CEO
LANDMECO AT A GLANCE
LANDMECO A/S was founded in 1932 and has grown into an international manufacturer of equipment for poultry.
It all started in the small Danish town of Ølgod, when Christian Andersen, in addition to managing his orchard, founded a chicken farm by purchasing 200 chicks. Unfortunately, half of them died due to illness, and his first earnings from egg sales were only 7.20 DKK (approximately €1). After the Second World War, the fruit trees gradually disappeared, and the chicken farm business became the backbone of the company.
In 1961, his son Søren Andersen joined the company, and by 1965, the chicken farming operation had expanded to a hatchery with a capacity of 250,000 eggs. The hatchery served both broilers and layers. The size of the private flock had grown to 15,000 hens. By 1970, the farm was also approved as a breeding center.
Poultry equipment distribution began in 1970 and soon included a variety of products, such as drinking and feeding systems, laying systems, and liquid vitamins. In 1977, the company underwent a generational change, making Søren Andersen the new owner and manager. In 1979, the company was renamed LANDMECO.
During the 1980s, LANDMECO began manufacturing poultry equipment. Initially, nests were produced. Since the farm's production involved floor-raised hens, this setup provided a good opportunity to experiment with different types of equipment, seeking solutions that outperformed existing systems. Subsequently, LANDMECO began developing feeding systems, including both pan and trough options, for broilers, breeders, and layers.
In 1996, LANDMECO launched the Harmony aviary system. Today, the system is still sold, but in newly developed and modified versions. In 1999, LANDMECO introduced its well-known patented pan feeding system featuring kick-off and easy-clean mechanisms. This system continues to be sold in a new and improved version.
In addition to the products mentioned, LANDMECO manufactures many other components for poultry equipment today and has evolved to become Scandinavia's largest producer within the sector, with exports to many parts of the world. Both the dealer and service networks are well developed, ensuring that the company remains close to its customers and responsive to their needs in all countries where LANDMECO is represented.
Landmeco has developed into an innovative, modern, high-tech company with a strong focus on both product efficiency and sustainability. It is very important to us that we are in the forefront of development to ensure that the animals in the LANDMECO inventory experience the best possible welfare and that our products are produced in the most sustainable way.
“In our innovative approach, we consider sustainability both upstream and downstream. We set high standards for our suppliers, and our sales focus on free-range and organic chicken customers. For us, it is about taking care of the environment and the planet,” says CEO Anders K. Andersen
VISION, MISSION, AND VALUES
Vision
To elevate poultry equipment innovation to global excellence and sustainability. Our vision is to stand as the leading innovator in the poultry equipment industry, unswerving in our dedication to offering customers cutting-edge, high-quality, functional, and reliable solutions. That not only meet but exceed their expectations, ensuring they receive unparalleled value for every investment they make. We aim to set industry standards and continuously challenge the boundaries of what is possible within poultry equipment. Ultimately contributing to the success and sustainability of the poultry businesses worldwide.
Mission
Customer-oriented innovation for sustainable excellence. We are committed to prioritizing customers and employees in our efforts and channelling our innovation and resources to create optimal results. Through market-based design and product development, we continually evolve and stay ahead in order to efficiently and sustainably meet our customers' changing needs. Our focus is on cost-effective production and maintaining the highest standards of quality using state-of-the-art technology and by being dynamic to ensure the right balance between quality, price, and sustainability.
Values
Customer Oriented
Listening to our customers' needs and transforming them into products and solutions that provide the best possible production opportunities and animal welfare is at the heart of everything we do.
Service
At LANDMECO, we pride ourselves on being flexible, planning carefully, and delivering quickly. Our goal is always to provide the best possible service, not only to our customers but also to our colleagues. This commitment to excellence helps us build long-lasting relationships, both within the company and with our customers.
• W hatwesay is whatwe d o •
Wekeep our promises
We Care about Each Other
At LANDMECO, creating a supportive and nurturing work environment is our top priority. We want every employee to thrive and have opportunities to grow both professionally and personally. We genuinely care about each other and prioritize everyone's well-being, fostering a culture of mutual support and respect.
We Think and Act Green
We are dedicated to always focusing on acting "green" and being sustainable in everything we do. We do this because we care about protecting the environment and each other, but also because we can influence a greener agenda within our industry.
Thoughtfulness
At LANDMECO, values play an important part in everything we do. They form the company’s DNA and serve as guidelines for our actions, both internally and externally. Within the company, we have a saying that we both live by and are proud of. What we say is what we do. We keep our promises.”
We focus on acting thoughtfully because it brings value to our environment and our customers. We strive to be efficient and innovative in our efforts to do more with less, always aiming to make a positive impact.
OUR ESG STRATEGY
At LANDMECO, we are committed to sustainable practices and prioritize environmental and social aspects in our operations. Our ESG strategy focuses on reducing our environmental impact, promoting employee safety, collaborating with suppliers, and ensuring transparent reporting.
We aim to minimize our environmental footprint by implementing energy-efficient measures, reducing waste, and transitioning to renewable energy sources for our production processes. Our goal is to steadily reduce greenhouse gas emissions and enhance energy efficiency across all operations. We are committed to achieving a net zero target for Scope 2 emissions by 2025.
Employee well-being and safety are paramount to us. We prioritize creating a safe and inclusive work environment for our workforce and collaborate with our suppliers to ensure that human rights violations have no place in our supply chain. We are committed to promoting diversity in our factories and strive for gen-
der representation on our Board. We have set specific targets for these initiatives and are actively tracking our progress towards achieving them by 2024.
We actively engage with our suppliers and business partners to promote responsible practices throughout our value chain. By working collaboratively, we address environmental and social challenges, ensure ethical sourcing, and foster transparent, mutually beneficial relationships.
Transparency and reporting are integral to our ESG strategy. We are committed to providing accurate and detailed information about our ESG initiatives, progress, and challenges. Regular communication with stakeholders helps us align with their expectations and demonstrate our unwavering commitment to sustainability. Through these efforts, we strive to positively impact the environment, prioritize employee well-being, foster responsible partnerships, and maintain transparency in all our operations.
We have chosen three Sustainable Development Goals (SDGs), which represent the pillars of our ESG strategy.
SDG 2: Zero Hunger
2.4.1: Proportion of agricultural area under productive and sustainable agriculture.
This aligns with LANDMECO's ESG strategy of promoting sustainable agriculture and food systems.
We are committed to ensuring sustainable food production systems and implementing resilient agricultural practices that not only increase productivity and production but also help maintain ecosystems, strengthen capacity for adaptation to climate change, and progressively improve land and soil quality.
SDG 7: Affordable and Clean Energy
7.1.2: Share of renewable energy within the total energy consumption.
This supports LANDMECO's ESG strategy by advocating for the adoption of renewable energy, reducing greenhouse gas emissions, and promoting energy efficiency in our operations to achieve a sustainable and low-carbon future.
As a production company, we are committed to decreasing our carbon footprint by purchasing electricity from renewable sources. We aim to have all of our production facilities covered by Power Purchase Agreements (PPAs) before 2026-2027.
SDG 8: Decent Work and Economic Growth
8.5.1: Average hourly earnings of female and male employees, by occupation, age, and persons with disability.
This is integral to LANDMECO's ESG strategy as it emphasizes fair treatment, diversity, and a safe working environment for employees. Moreover, also driving economic growth through responsible business practices and fostering partnerships for sustainable development.
We are goal-oriented in our efforts to ensure a safe and healthy work environment, both internally at LANDMECO and among our key suppliers. Our focus is on the diversity of nationalities, cultures, and genders, as well as the inclusion of people with disabilities.
DEVELOPMENT IN CO2
2022-2023 scope 1 and 2
Decrease in CO2e by 18%
LANDMECO ESG RISKS
Risks
Initiatives to Mitigate Risks
Resource Consumption and Impact on Land Use
LANDMECO operates in the agricultural sector, which can have extensive environmental implications on the environment, such as land degradation, freshwater pollution, and deforestation.
To address this risk, LANDMECO will focus on the responsible use of water, energy, and raw materials throughout its operations, as well as minimizing greenhouse gas emissions and waste generation. Optimizing the design of its products that will facilitate positive change in the agricultural sector can help mitigate this risk.
Supply Chain and Labor Practices
LANDMECO should consider the social risks associated with its supply chain and labor practices. This includes ensuring fair and ethical treatment of workers, both within the company and in its supply chain. Risks related to labor standards, health and safety, human rights, and diversity and inclusion should be addressed.
Implementing robust supplier due diligence processes, promoting fair employment practices, and fostering a supportive and inclusive work environment are crucial steps in managing this risk.
Board Composition and Corporate Ethics
Governance risks encompass the structure, leadership, and ethical standards within the company. LANDMECO should assess its governance practices, including board composition, independence, and diversity.
Ensuring transparency, accountability, and ethical behavior are essential in managing this risk. Strong corporate governance frameworks, clear codes of conduct, and effective internal control mechanisms can help mitigate governance-related risks.
ENVIRONMENTAL
In relation to CO2 footprint, the poultry industry has high efficiency in converting feed into meat. This efficiency leads to reduced land and water us, lowering the environmental impact compared to larger animals. Due to this lower CO2 footprint, we believe that poultry will become one of the preferred meat products in the future. This opens up growth opportunities for LANDMECO, and at the same time, it sets high demands for LANDMECO as a company, as we need to scale our business without increasing the CO2 footprint proportionally.
Source: United Nations
Source: OECD-FAO Agricultural Outlook Report 2022-2031
We place great emphasis on the company's impact on the climate and environment. Since 2020, there has been a continuous focus on CO2 emissions, and we take active responsibility for reducing our environmental footprint and continuously explore ways to minimize our impact on the climate and environment. Within scope 1 and 2, LANDMECO has reduced the CO2 emissions by 32% from 2020 to 2023.
Energy Consumption
Our heating is provided by wood pellets, which are a biogenic and sustainable source, as the CO2 emissions are deducted from the main CO2 emission factor to account for the CO2 uptake during the biological process of growing biomass. However, we will investigate if further optimization is an option with e.g. heat pumps.
Apart from heating, we have also reduced our internal electricity consumption. We achieved this by focusing our purchases on the most energy-efficient products and converting all lights to LED. The next step will be to install light sensors where relevant.
Waste
In our production facility, we are focused on recycling waste to the best possible extent. The company has built a strong culture among employees for sorting waste into fractions, such as metals, cardboard and paper, plastic films, hard plastic, etc., which are then sent for recycling. Only 1.7 % of the waste in 2023 was non-recyclable and was sent for incineration. We will continue to foster ongoing awareness within this area.
"It meant a lot to me that LANDMECO responded positively to my request for a sponsorship for my daughter, who plays handball. It is nice to feel this support as an employee, and I am proud that “my” company is visible and engaged in the local community," says
Peter Buhl, Sales Coordinator
SOCIAL
An Inclusive Workplace
The employees are one of the company's most important assets, which is why it is crucial at LANDMECO that our employees thrive, and that safety is a top priority. We focus heavily on being an inclusive workplace, where the combination of the right skills is present, both to support each other best possible in the daily work, but also naturally to provide our customers with the best service and support. In addition to the composition of skills, we also focus on being an inclusive company, where diversity is important, in 2024 we are 40 employees from eight different nationalities. It is particularly important for LANDMECO that there is an opportunity for personal and professional development. Therefore, we focus on ensuring that employees can take on new and exciting job functions and receive the education necessary.
“We have ambitious goals for turnover and for having the best delivery time in the industry. To reach these goals, our employees are the determining factor. Therefore, we are equally focused on creating the best workplace, with high well-being and the opportunity for personal development,” says CEO Anders K. Andersen
Social Gathering
The social aspect of working at LANDMECO is also important, which is why we have various employee events
throughout the year. Additionally, the company's employees in Denmark have access to a well-equipped gym at the company's address. We see that good physical fitness contributes to well-being and job satisfaction, and as company we also want to take care of our employees in this regard.
Local Activities
We want our employees to be proud of LANDMECO as a major company in the local area. Therefore, we take social responsibility for our surrounding community, and sponsor various local activities and initiatives where our employees are involved.
Focus Toward our Supply Chain
In terms of social aspects, we also look beyond our own area and our own company, which is why our focus is also directed towards the company's supply chain, where we aim to actively ensure that there are no human rights violations. At our yearly meeting, we discuss the production processes with our suppliers to ensure that the entire supply chain is emphasized and that no violation take place.
At LANDMECO, the social aspect is an important area because we believe that focusing on social issues helps to reduce turnover costs, minimize operational risks, boost morale and productivity, and enhance the company's reputation, making it more attractive to potential employees and investors.
GOVERNANCE
Corporate Governance
At LANDMECO, it is a natural priority to focus on the breadth of competencies on the board as well as on diversity. We comply with the guidelines set forth by The Danish Business Authority (Erhvervsstyrelsen) on “Targets and policies for the gender composition of management and reporting thereof”, and we also have a 100% attendance rate at our board meetings
There is a focus on risk management in order to reduce financial, strategic, and business risks, which at the same time founds the basis for high quality in management decisions.
Integrating ESG into the Organization
At LANDMECO, ESG is still in the initial phase, where the ESG strategy and initiatives are primarily anchored in the senior management. However, there is a clear ambition to embed it throughout the entire company, and by 2024 and 2025, this is a focus area for our newly appointed ESG officer.
IT Security
External threats to IT security are on a sharp rise. Consequently, it has been a focus area at LANDMECO to secure the company as effectively as possible against these risks. Various security policies have been developed, including access control to computers and systems. It is an area under constant focus, where it is
continually necessary to launch new initiatives to keep threats on a minimum.
It has also been important to increase awareness and security among all employees. For this reason, we have conducted an IT-awareness program where employees go through multiple online courses, with learning targeted at Cyber security, IT security, and GDPR. The latter is also an area where both management and the board have significant focus. It is an area where focus needs to be intensified, both in terms of internal and external related initiatives. The IT-awareness training secures a good safety behaviour and awareness about the importance of controlling access to various information.
Whistleblower Scheme
Transparency and accountability are values that the management wishes to be natural for our employees and other stakeholders. Therefore, in collaboration with our owner SKIOLD, we have established a Whistleblower scheme, which ensures that there is a channel through which inappropriate behavior or illegal activities within the organization can be reported. LANDMECO aims in this way to promote openness and honesty and at the same time protect the individual who submits an observation, with full anonymity. It is also important for the company that any reported cases are handled professionally and efficiently, which our Whistleblower scheme helps to ensure.
Whatwe say is what we
ekeep our promises
ESG KEY FIGURES
ESG encompasses three areas: environmental and climate conditions, social conditions, and governance conditions. Below there are several selected ESG key figures for the period 01.01.2023 - 31.12.2023.
Historical Data and Development
LANDMECO has been tracking the environmental footprint since 2020 and despite growth we have managed to lower our total environmental footprint.
Distrubution (KWH)
The energy consumption is divided into three major areas: electricity, heating, and company cars. The latter has increased this year due to hiring of employees with company cars. This issue is addressed in our goals, where we aim to reduce consumption in this area. However, overall energy consumption shows a downward trend.
One of the major focus areas within in the past couple of years has been increasing the awareness of waste reduction in our headquarter facilities. This ongoing focus is frequently emphasized within the company and has yielded good results.
Accounting Practices for Calculating E-metrics
Our E-metrics are based on data from utility companies and suppliers. To convert this data into CO2 equivalents (CO2e), we use the Danish Business Authority's calculation tool “Klimakompasset”, which follows the principles of the Greenhouse Gas Protocol (GHG Protocol). The emission factor used for electricity is sourced from the relevant “Environmental Declaration”.
Scope Assessment
In preparing our first sustainability report, we have primarily worked with internally available data. As a starting point, we have chosen to focus on the data that contribute to the calculation of Scope 1 and 2 emissions in the climate accounting. This covers our energy consumption for the operation of buildings and our transportation vehicles.
Scope 3
The majority of a company's total climate footprint usually lies in Scope 3, which typically involves factors over which the company has limited and often only indirect influence. This scope is not included in this report.
Residual - for incineration Metals Plastic Cardboard
Work accidents
(Accident frequency LANDMECO 3.1% up against industry figure 2.4%, Manufacturing Industry 2022)**
Proportion of women among full-time employees***
*Confederation of Danish Employers 2023 **Confederation of Danish Employers 2022 ***Not calculated
Governance
Calculation Practices for S- and G-KPIs
Social and governance data are compiled based on records in payroll and financial systems, as well as other internal records. The calculations are compared against statistics from the Confederation of Danish Employers (DA).
Notes on the report
Data from 2020 to 2022 is provided by a third party. This report has not been verified by an independent third party. Although we have endeavored to ensure that the contents of the report are accurate, we do not guarantee its accuracy and/or completeness. Therefore, we disclaim any responsibility for any damage or loss that may arise from actions taken based on this report.
LANDMECO ESG GOALS
On management level at LANDMECO we have performed a roadmap for ESG-initiatives until 2026. It is our aim to have a clear visibility about the initiatives and to follow up on a currently basis.
Environmental initiatives
2024
Electricity – reduce to net-zero scope 2 emissions
• Reduce electricity usage at facilities by amongst other things installing automation sensors
Heat (wood pellets)
• Although the emissions from the category (stationary combustion) are small in the main results. The Out-of-Scope results from the burning of biomass are approx. 3 times higher than the total results. Therefore, a potential for reducing actual emissions to the atmosphere is present via substitution (i.e. heat pumps)
Mapping of suppliers to prepare for CO2e baseline in Scope 3
2025
CO2e baseline: Scope 3 (metric data) – prepare for CSRD data collection
Supplier engagement program (scope 3)
• Scope 3 screening to identify emission hotspots in the value chain
2026-2027
Enter into an agreement of either 'Guarantees of Origin-certificates' or 'Power Purchase Agreements', which can lower emissions in the category to 0 tCO2e if the entire consumption profile is covered.
Social initiatives
Governance initiatives
2024
Sick leave
• Employer Survey on well-being
• Reduce the sick leave to max 1,5%
Safety protocols
• Ensure safe working conditions for our employees, by strengthening safety protocols to secure:
• 0 work related accidents per year
• Minimum 4 safety screenings per year
Supply chain focus
• Work closely with suppliers to maintain a safe work environment for workers in the supply chain and get 2023 incident data from 2-4 of the biggest suppliers
2024 Diversity
• Ensure a diverse and futureproof organization
• The company aims to follows the guidance and target figures for for the gender composition of management and for reporting thereof issues by Danish Business Authority
Animal welfare
• Mature CoC and underlying processes and procedures in accordance with rightful local standards
CSRD reporting
• Sustainability target and KPI finalization
• Mapping of IT needs to map relevant information to comply with scope 3 demands
2025
CSRD reporting
• Carry out the Materiality Assessment
• Collection of data and preparing policies to be able to comply with the demands in the EU-directive CSRD and the underlaying ESRS disclosure
2026
CSRD reporting
• Collection of data and preparing policies to be able to comply with the demands in the EU-directive CSRD and the underlaying ESRS disclosure
LANDMECO commits to setting and adhering to greenhouse gas reduction targets that are in accordance with the latest climate science requirements to limit global warming.
