Statement of corporate social responsibility, cf. Danish Financial Statements Act §99a 2021-22
The compulsory statement of corporate social responsibility describes the business model of JPS Marselis ApS in relation to corporate social responsibility, policies for corporate social responsibility and risk assessment, as well as a description of actions and results.
JPS Marselis ApS has elected to publish its statement in accordance with Section 99a as indicated on the company website.
The statement below includes JPS Marselis ApS’s report for 2021/22 and forms part of the management report that is included in the annual report.
Description of the JPS Marselis business model
JPS Marselis and its subsidiaries form part of a structure that focuses either on property (JPS Administration A/S and JPS Germa A/S) or individual enterprises (Tropica Aquarium Plants A/S, Hornbaek A/S, Vahle A/S and Dansk Administrationscenter A/S). A number of these companies are set up as focused sub-groups that have their own subsidiaries. The individual companies have a large degree of independence operationally, with their own organisational structures and management with responsibility for running their company. The companies’ underlying subsidiaries manage activities identical to, or closely related to, the company’s main business activity. The companies’ underlying subsidiaries manage activities identical to, or closely related to, the company’s main business activity.
The majority of the Group’s turnover is generated from the Group’s own production of wooden goods and aquatic plants. The remainder of its turnover is essentially generated from retail activity and real estate lettings.
The Group’s procurement of raw materials is limited to timber from forests primarily in the Nordic and Baltic countries, which is purchased in large quantities from approved suppliers. The Group’s procurement of components involves the purchase of a large number of products from suppliers around the world. Common to all of these products is the fact that they are manufactured by suppliers with high quality standards.
In essence, the Group’s turnover is based on sales to professionals who sell the goods on to both private individuals and professional clients. In essence, the Group’s turnover is based on sales to professionals who sell the goods on to both private individuals and professional clients. Revenue from sales directly to private and public-sector customers is very limited. The Group’s property is mainly let to private tenants (for residential purposes).
The above characteristics mean that the Group’s general business model involves CR- related conditions that play a central role in our business. This applies especially to employee relations, our use of resources in the form of energy and raw materials etc. as well as good business ethics.
CR – policy and risk assessment
JPS Marselis has adopted Corporate Responsibility (CR) policies with regard to:
- Human rights
- Social conditions and employee working conditions
- Anti-corruption measures and business ethics
- Climate and environment
All policies have been implemented within the Group
The Group’s CR policy provides a framework for a common approach to be taken by all our employees in relation to our values and our targets, i.e. to be sustainable and responsible in our actions. The policy outlines a series of guidelines and our expectations of one another, summarising how we should conduct ourselves as employees and as an employer. The policy is based on the United Nations’ ‘Global Compact’.
JPS Marselis has also conducted an overall risk assessment of the areas mentioned above. The most significant risks are outlined below in connection with the policy in each individual area.
Human rights
JPS Marselis is active in a large number of countries around the world. Regardless of where we have our operations, we always strive to observe human rights, value our employees and treat them with respect. We support and respect the UN’s international Universal Declaration of Human Rights, protecting human rights internationally, and observe ILO conventions and recommendations.
JPS Marselis has conducted an overall risk assessment with regard to human rights. The Group has operations in many different countries, including countries that might be defined as ‘high-risk’. The most significant risk in relation to human rights exists in connection with activities in high-risk countries. The managers of all of these activities are now familiar with our policies and approaches to human rights – regardless of geographical affiliation. The latter is thought to be a contributing factor to reducing the risk of human rights violations. The most significant risk in relation to human rights exists in connection with activities in high-risk countries.
Social conditions and employee working conditions
At JPS Marselis, we believe that it is the people who achieve the results. We strive to be a responsible employer that ensures proper terms of employment, safe and healthy working conditions and a motivating working environment for our employees. We are a diverse workplace that contributes to the communities in which we have a presence by creating jobs and employing unskilled workers and people struggling to break into the job market.
JPS Marselis has conducted an overall risk assessment with regard to social conditions and employee working conditions. Given that JPS Marselis regards its employees as the Group’s most important resource, CR risks are thought to be an area of particular significance in the context of social conditions and employee working conditions.
The activities undertaken by the Group require employees to be dedicated and highly competent, with significant demands placed on their skills. For the most part, the company has an educated labour force or employees who have acquired the necessary skills after an induction and further training, making it possible to meet the company quality and safety standards. This is also a contributing factor in ensuring that a high level can be maintained in terms of working environment standard.
With regard specifically to social conditions and employee working conditions, activities taking place outside of the former ‘Western Europe’ (Latvia) are thought to be particular risks, because management culture and motivating working environments do not have the same prevalence and historic integrity as we know it in Denmark. For this reason, we place a particular focus on these areas in our day-to-day management and controlling of the subsidiaries. The outcome of this specific focus is thought to reduce the outlined risks. Continual improvements are being made to minimise the risks in this area.
In terms of the policies in this area, no non-compliant activities/decisions were confirmed (in this area) for the financial year in question.
Anti-corruption measures and business ethics
Over the years, JPS Marselis has built up a reputation as a company that maintains a high level of integrity and ethical conduct. We counteract all forms of corruption, including bribery.
JPS Marselis has conducted an overall risk assessment with regard to anti-corruption measures and business ethics. The JPS Marselis vision is to be one of the best at creating value in a proper and credible manner, done by committing ourselves and our companies to assuming responsibility and acting in the interest of sustainability, regardless of the country of our business operations. This vision is firmly anchored in the manner in which JPS Marselis runs its business, which has helped to build up the Group’s good reputation. As such, it is not thought that this area poses a major risk for CR; even so, a firm focus is placed on it to ensure that a high standard is maintained.
With regard specifically to anti-corruption measures and business ethics, activities taking place outside of the former ‘Western Europe’ (Latvia) are thought to be particular risks. To provide some background, the business environment there typically is, or has been, susceptible to bribery and corruption, as these are considered important ingredients historically when it comes to meeting business targets. For this reason, we place a particular focus on these areas in our day-to-day management and controlling of the subsidiaries. The outcome of this specific focus is thought to reduce the outlined risks.
In terms of the policies in this area, no non-compliant activities/decisions were confirmed (in this area) for the financial year in question.
The Group has introduced a whistleblower scheme that complies with general practice for sound company management. Under the whistleblower scheme, employees, customers, suppliers, partners or other stakeholders with a connection to JPS Marselis Group are able, in good faith, to report (anonymously or publicly) any serious circumstances potentially of significance to the company as a whole, or which may have significant meaning for the lives or health of individuals. Details of the whistleblower scheme are available in three different languages – English, Danish and German – at www.jpsmarselis.com In 2021/22 the Group is yet to see any whistleblowing under the scheme.
Climate and environment
JPS Marselis Group companies use raw materials in their work that are predominantly produced in a way that is positive for the environment. This applies both to the primary raw material, wood, which comes from forests in northern Europe, and to purchased plants. We recognise that transportation of raw materials, plus the production/processing that takes place subsequently, has an impact on the environment. Our CR policy for climate and environment requires us to take responsibility in relation to the environment and impact on the climate, doing so via proactive efforts to protect the environment, which includes reducing our consumption.
JPS Marselis has conducted an overall risk assessment with regard to climate and environment. As a result of continually reducing consumption of resources as a consequence of a desire for environmental responsibility and sound business practice, this area is not thought to pose a CR risk for the Group. When purchasing raw materials, certification tends to be a central requirement (e.g. FSC®), which means that we are ensuring that the raw materials fulfil a number of CR requirements.
In terms of the policies in this area, no non-compliant activities/decisions were confirmed (in this area) for the financial year in question.
Description of action taken and outcomes
CR initiatives at the JPS Marselis Group are undertaken primarily at individual company level, with these ongoing efforts prioritised based on the areas with the greatest CR risk. This often links with the points of focus which are also business-related in perspective, i.e. social conditions and employee working conditions, as well as climate and environment.
2021/22 is the fifth year in which a Corporate Responsibility report (Section 99a) has been compiled.
Below is a brief status of the individual business areas.
All employees in Hornbaek, Tropica and Vahle – a total of 153 employees – have in 2021/22 been on a two-day course in “Lean and Sustainable Production” with a focus on the UN’s Global Goals no. 7 (Affordable and Clean Energy), no. 12 (Responsible Consumption and Production) and No. 15 (Life on Land). The employees in our foreign subsidiaries have attended similar courses.
A follow-up course is planned for all employees in 2022/23. In addition, key employees have gone through a course that equips them to be change agents who take the lead and inspire their colleagues in the companies’ work with lean and sustainability.
The training of our employees takes place, among other things, as part of our work with the UN’s World Goal 8 (Decent Work and Economic Growth).
As a result of the training course, a number of projects have been initiated. At Hornbaek they have, e.g. initiated three projects. The first includes closer analysis of the possibilities in the production to avoid heavy lifting. The second project includes digitizing the expedition’s data for out-of-stock items, and the third project includes increased recycling of waste wood.
Within the area of social conditions and employee working conditions, Hornbaek is focusing heavily on safety in production where machinery is used for processing. Ongoing efforts are being made to improve working conditions, via improvements to shielding, working posture for manual processes and use of special materials for heavy lifting and transportation. In dispatch, electrically powered trolleys (among other things) are now being used during packing. Programmes are in place and ongoing to provide safety training and to provide protection in the physical working environment.
At Hornbaek Baltic, filling and quality control are, for the most part, manual processes. The focus there is on ensuring ergonomically correct working posture and sufficient lighting during this process. The financial year in question saw investment in a machine that will take care of much of the filing work. Over the course of the year, systematic work was carried out to prevent work accidents as these are completely unacceptable.
Hornbaek has had two minor work accidents in 2021/22. In both cases, all safety requirements for the machines were complied with at the time of the accident. Subsequently, additional training has been given to the employees regarding compliance with safety instructions, and a more frequent cleaning of saws has been introduced.
Hornbaek has registered with eco-online, which is a platform where you register all chemistry in the company. Detailed action plans have been drawn up for what to do if an accident occurs.
Within the area of climate and environment, Hornbaek has had a focus on use of FSC-certified timber in production for many years already. Sourcing sufficiently certified timber that meets Hornbaek’s strict quality requirements is a constant challenge.
In addition, the following concrete actions have been carried out in Hornbaek:
- In Randers, a new barcode system has helped reduce the number of wrong lifts.
- In Randers, the office and canteen have been renovated with sound-absorbing ceilings and ventilation.
- In Baltic, a thorough renovation of facilities in the administration and for the production employees has been carried out.
- In Baltic, a registration system has been installed on all goods and internal logistics. This digitalisation reduces, among other things, our use of paper.
Tropica is a big consumer of water, electricity and heating due to the large quantities of water and light required by the company’s aquatic plants, as well as the fixed temperature of 24 degrees that needs to be maintained in the greenhouses. With regard to water, more than 80 percent of all the water consumed by Tropica to produce plants comes from rainwater from roofs. The rainwater is collected in a large external tank with capacity for 1.3 million litres of water.
Tropica is working on its electricity consumption by using alternatives to traditional electric lighting in one of its nurseries. In recent years, use of LED technology has helped to reduce overall electricity consumption. In the course of the year, further investment was made in energy-efficient lighting at Dennerle Plants, which also means that we are increasing our own production. The in-house production at Dennerle Plants will significantly minimize purchases from sub-suppliers, which generates a lower CO2 footprint per plant due to less transport and various repackaging.
During the year, we have tested new packaging methods, which has resulted in us both at Dennerle Plants and Tropica switching to a pure cardboard solution. Plastic foil and styrofoam are excluded from now on.
During the year, we will change the current pot at Dennerle Plants, so that we use the same one for production as we do in Tropica. This means that almost three million pots change status to be made from 99% recycled plastic. The pot will also weigh less and will be able to be sorted in all European sorting facilities.
At Tropica, the production of prints will stop. We have developed an app, which must instead be continuously updated with plant news, and where all customers can download the marketing materials they need. In this way, we do not produce redundant paper for storage, nor do we have to send the material physically all over Europe.
Vahle has entered into an agreement that all electricity is green from January 2022. In practice, this means that the electricity used in both administration and production comes from wind turbines. In addition, Vahle has reduced power consumption by 22% in absolute kwh over the past four years. Production has increased by 35% in the same period.
This saving has been achieved by investing in new machines with lower power consumption. E.g. is a main compressor replaced with a new energy-efficient model. In the same way, the light sources have been replaced with LED lighting, and finally, energy savings have been achieved through the design of a more efficient production.
Vahle has invested in new painting facilities that have been set up in 2021/22. The objective of which is to avoid transportation to and from any external subsupplier (painter). The new painting facility is estimated to reduce the total climate footprint and to reduce the amount of paint consumed per unit. In addition, we achieve a more energy-efficient drying process.
In 2021/22, the Group has supported the following projects, which are described in more detail at jpsmarselis.com:
Donation to Ukrainian families on the run through Dan Church Aid. Behind the donation is a desire to provide the very basics for the many refugees who are currently left with very little. These are items like food, diapers, blankets, and shelter. Things that we quite naturally take for granted.
Kirkens Korshær work in Aarhus, which is home to the city’s homeless and odd existences.
A three-year climate agreement has been concluded with Dan Church Aid. The agreement focuses both on making a difference to the climate and on helping communities facing adversity due to climate change. The climate agreement will see more than 2,000 trees planted in Uganda, which, thanks to the absorption of CO2 this will achieve, is going to have a positive effect on the climate as well as a positive direct impact on the local community.
“SheWORKS” is a project under Made in Hope that works with trafficked women and their children in Manila, Philippines. The project includes support and help for education, which gives the women the opportunity to try for themselves and have a better life.
In the areas of human rights as well as anti-corruption and business ethics, in 2021/22 we have carried out overall assessments of the primary risks, as a basis for further work. The work with the assessments is, like the development of the policies for social responsibility in general, carried out across the organization with representation from the group’s companies. This ensures a great awareness of the risk picture throughout the group. No other areas or actions have been found that require special handling.
In 2022/23, we will maintain the group’s CR efforts within the areas described above.