CORPORATE SOCIAL RESPONSIBILITY · Corporate Social Responsibility Report 2017 7. Intercargo...

CORPORATE SOCIAL RESPONSIBILITYREPORT 2017

Intercargo Scandinavia A/S

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OUR BUSINESS

FOREWORD BY THE CEO

HIGH LIGHTS

ABOUT US

RESPONSIBILITY IS IN OUR DNA

CSR STRATEGY

ENVIRONMENTAL RESPONSIBILITY

SOCIAL RESPONSIBILITY

OBJECTIVES

CONTENTS

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Published January 2018

Corporate Social Responsibility Report 2017

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OUR BUSINESS

Family owned companyFounded 1997

History

Headquarter Tolsagervej 6, Hadbjerg8370 HadstenCVR: 20180498CEO: Chris Lyman

Company Information

Logistics

Sector

Transportation of temperature-controlled goods part-loads/ full-loads

Transportation of dry goods part-loads/ full-loads

EMS transportation (European Modular System)

Train transportation Norway

Storage of refrigerated, frozen- and dry goods

Pick & Pack service of fish from our warehouses located in Oslo, Hadsten and Padborg

We offer

Standardized inspection visit by authorities representing Ministry of Environment and Food of Denmark: 09.07.2017

Food safety

Approved with highest level in the scheme -happy smiley :)

Food hygiene inspection


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2017 has been a landmark in the history of Intercargo Scandinavia. Not only have the recent years growth in the company created new market opportunities and strengthened the ties to our business partners, it has also a linked us ever closer together internally.

All employees at Intercargo Scandinavia are considered as family, which we find essential in terms of succeeding as a team. There has been some changes this year in the team structure, my father the founder of Intercargo Scandinavia Thomas Sass Lyman has after many years of hard work and impressive results chosen to give the next generation of the family, the top management position in the company. Even though Thomas is no longer part of the daily work, he will always be a part of our Intercargo Scandinavia family.

I will lead the company in the same spirit as my father did, to ensure the best quality and service to our business partners. Our passionate team will as always live up to our high quality standards and take responsibility for each other and the tasks. Responsibility is rooted in our business strategy because it is a part of our Intercargo-family DNA and because it makes good sense in terms of business; Our responsible approach

ensures quality and a more sustainable business. With this CSR (Corporate Social Responsibility) report 2017 we wish to give you an insight of our status, results and objectives. We acknowledge our responsibility within the business we are operating in, and in our daily work continuously focus on environmental and social aspects of responsibility. We feel an obligation to respond to those environmental and societal challenges that we face and therefore look into new methods and technology to ensure reduced environmental impacts as well as developing initiatives which creates shared value for us and our stakeholders.

Chris LymanCEO Intercargo Scandinavia A/S

FOREWORD BY THE CEO


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HIGH LIGHTS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

7 76

810 10

12

23

29

35

44

European Modular System transportation

Number of employees

9 EMS 25 meter trucks 51 pallets

less fuel consumption per pallet transported by EMS trucks1

49%

increase of cargo per transportation

54%

1Intercargo Scandinavia regular 33 pallet trucks drive 2,8 km/liters diesel. EMS 51 pallet trucks drive 2,2 km/liters diesel.


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Fuel reductionRoad to Rail

increase in train transportation in Norway from 2015-2016

Train transportation reduces fuel consumption of trucks612 tons reduction of CO2 emissions2

increase in train transportation in Norway from 2016-2017

199%increase in train transportation in Norway from 2015-2016

liter dieselreduced in 2017 by using rail instead of road

231.035

faster by rail Narvik-Oslo than road

18 hours

2Source: International Transport Danmark (ITD): Lastbiltransport, Klima og miljø. 1 liters burned diesel fuel corresponds to 2,65 kg CO2.


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Intercargo Scandinavia A/S is a logistics and freight company, we are specialized in transporting temperature-controlled cargo, operating with 24 hours service. Furthermore offers various supply chain solutions e.g. warehousing and key account management. The company was founded in 1997 and has since our foundation expanded steadily in the international logistics and transportation business. With our fleet of more than 350 trucks operating all across Europe on a daily basis, we ensure to meet the increasing demand and live up to the values of unique customer service and delivery on time.

We operate from the headquarters in Hadsten, Denmark and from the offices in Norway, Sweden, Romania and Poland.

Our main objective is to offer flexible logistic- and transportation solutions that meet the needs of each individual customer. We strive to become the ideal strategic partner for our business associates in every aspect. We seek to deliver the highest level of quality and be upfront with the most recent solutions and technology in terms of efficiency, quality and sustainability.

ABOUT US

350 TRUCKS

44 EMPLOYEES

6 NATIONALITIES

24 HOUR SERVICE


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OUR VALUES UNIQUE CUSTOMER SERVICE

PROFESSIONALISM

ACTION FAIRNESS

TAKE RESPONSIBILITY

FAMILIARITY

SOLUTION-FOCUSED

24-7-365


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RESPONSIBILITY IS IN OUR DNAAt Intercargo Scandinavia we believe that a responsible approach to our business creates value for us, our stakeholders and the environment and society. Responsibility is a part of our core values and by living up to this value we believe we can contribute to set high standards and expectations in the business of logistics and transportation. We believe in delivering the best quality and service, but this also implies developing best-in-class solutions and push limits of what is durable within responsibility and environmental focus in this business to create value for our customers and to ensure a sustainable business for future generations.


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We define CSR as the way we integrate environmental and societal concerns in our business strategy and actively perform these CSR initiatives in accordance with legislation, own guidelines and ethics. We perceive CSR as a process and constantly try to improve and develop our business processes in ways that add value to the company and at the

same time contribute to a more sustainable business which benefits environment, employees, customers and society. Intercargo Scandinavia A/S approaches the concept of CSR in accordance with the 10 fundamental principles formulated in the UN Global Compact initiative.

CSR STRATEGY

PRINCIPLE 10Businesses should workagainst corruption in all itsforms, including extortion and bribery

ANTI-CORRUPTION

PRINCIPLE 7Businesses should support a precautionary approach to environmental challenges;

PRINCIPLE 8undertake initiatives to promote greater environmentalresponsibility; and

PRINCIPLE 9encourage the development and diffusion of environmentallyfriendly technologies.

ENVIRONMENT

PRINCIPLE 3Businesses should upholdthe freedom of association and the effective recognitionof the right to collectivebargaining;

PRINCIPLE 4the elimination of all forms of forced and compulsory labour;

PRINCIPLE 5the effective abolition of child labour; and

PRINCIPLE 6the elimination of discrimination in respect of employment and occupation.

LABOUR

PRINCIPLE 1 Businesses should support and respect the protection of internationally proclaimedhuman rights; and

PRINCIPLE 2make sure that they are not complicit in human rights abuses.

HUMAN RIGHTS


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We have a lot of logistic activities across Europe, and our growth the latest years naturally requires an intensified focus on environmental focused initiatives. Therefore we commit ourselves to reduce the consumption of resources and decrease CO2-emissions. We constantly keep an eye on the newest technology and show respect for our surroundings by developing strategies, procedures and implement the best available solutions.

ECO-DRIVINGWe consider eco-driving as a straightforward opportunity, to not only meet the requirements of the legislation, but also to reach our objective of integrating sustainable considerations in every aspect of the transportation activities, and reducing the environmental footprint on when transporting cargo across Europe. Eco-driving is estimated to reduce fuel consumption with up to 10%. Our drivers are encouraged to and educated in eco-driving so we can transport cargo in an efficient and more environmental friendly way when it comes to route-planning, gearing, speeding and braking.

FROM ROAD TO RAILAs a part of our CSR strategy we have invested in alternative transportation solutions, which contributes to reduction of CO2 emissions and eases the heavy traffic. We have in the last couple of years converted two of our busy routes into a rail-and-road combination. This intermodal transportation is not that flexible, but it reduces our fuel consumption. Intermodal transportation gives us the opportunity to offer a more sustainable transportations solution, which is in correspondence with our environmental focus. Our ambition is to increase the application of train transportation in our transportation processes. The road to railway- concept has a significant positive impact on the infrastructure and emissions due to a triple increase of the rail activities Narvik-Oslo and Bergen-Oslo from 2016-2017. This alternative solution has saved the roads and environment for 646.900 km. The trucks’ consumption of diesel fuel have

been reduced with 231.035 liters per year, which means that Intercargo Scandinavia has reduced the emissions of the trucks CO2 with 612 ton .

EFFICIENT LOGISTICSWe make a huge effort in coordinating our trucks so they have as many trips with full loaded trailers, and delivery as quick as possible. In this way we avoid unnecessary usage of diesel and thereby reduce emissions and increase efficiency, this is carried out by our intelligent electronic Fleet Management System. The system operates with navigation, traceability, Eco-driving recommendations, route calculations, GPS, reports, order handling, driver screen messages, work and rest hours, temperature monitoring. The Fleet Management System is a user friendly tool which ensures the daily communication, data collections and operations between trucks and administration. The system automatically calculate the most effective route in order to reduce CO2 emissions and reduce overload on the European infrastructure.

RESPONSIBLE USAGE OF ENERGYIntercargo Scandinavia seeks to use the most environmental energy sources when possible. We always turn of the frigo machine using diesel and switch to electricity when possible, e.g. when parking during a driver’s resting period. This reduces consumption of fossil fuels and thereby reduces emissions. Furthermore LED lighting in the administration offices as well as insulation in the walls of the cooled terminal warehouse contributes to reduction in our energy consumption.

ENVIRONMENTAL RESPONSIBILITY


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RECRUITMENTAs a result of our growth we are continuously hiring people. We always look for passionate people to join the team and due to our growth occasionally have career openings. We search for team-players who are ready to show initiative and have a responsible approach to their work. The company is continuously evolving and we wish for our employees to do the same. Therefore we support each individual in their career choice and entrusts responsibility that matches their competencies and experience.When it comes to recruiting chauffeurs Intercargo Scandinavia is offering some of the highest wages in the business. We believe in offering our customers the best product and therefore we need to attract the best employees to ensure the best quality and deliveries.

WORK ENVIRONMENTWe have a flat organization structure, which contributes a positive and non-bureaucratic atmosphere, which should ease the communication between all members of the team and at the same time, create a comfortable working environment. We have a policy for treating each other nicely and speaking to one another in a proper manner as well as no bullying, inappropriate behavior or slander is accepted. This will contribute to a comfortable working environment, where all employees feel accepted and feel that they can talk about issues with every member of the Intercargo Scandinavia team. To increase an even further cohesiveness in the team we arrange annual teambuilding days where the employees are offered the opportunity to connect and interact socially. Moreover our company policy state that it is not allowed to attend work affected by alcohol or intoxicants, as well as smoking is not allowed at the premises, which is also stated in our employee policy.

EDUCATION PROGRAMSAt Intercargo Scandinavia we believe that performance and success are closely linked to employee satisfaction. Therefore we invest in our team and make sure that each individual has the sufficient education, that matches his or hers ambitions and personal development, so they feel comfortably challenged in their daily job position. Our standards are high and we never compromise quality, and therefore we seek to have the most committed and responsible members in our team. We offer education programs and the opportunity to develop to those employees who show dedication, initiative and responsibility in their work. We have offered education programs such as HD, language courses such as Norwegian and Danish, IT-courses, MBA and HR and do also execute a 2-year trainee program, which we offer annually to those who get accepted as trainees in the company.

INTERCULTURAL SYNERGIES We see a great advantage in having a diverse team consisting of different cultural backgrounds. The intercultural composition adds value to the company and create a greater understanding of different cultures, languages and norms. The intercultural composition of our employees create a dynamic work environment and creates value in our daily work. We pay respect to the diversity and consider this as an advantage in our performance and daily operations. We offer our employees language courses in order to make sure everybody feels understood, included and can work effectively with colleagues, suppliers and customers. We are an international focused company and our main business language is English and Danish, additionally we master German, French, Swedish, Norwegian, Polish, Turkish, Romanian, Portuguese Russian, Hungarian, Thai and Spanish. Due to our values and cultural diversity our internal policies and common understanding is, that bullying, harassment and racism is not tolerated at any time and we make sure, that each member in the team feels welcomed and respected.

INTERNALLYSOCIAL RESPONSIBILITY


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At Intercargo Scandinavia we focus on employee development and inclusion. Believing in people and supporting their development and career do not only create value for the individual and the company but also contribute to our responsibility in society. We want to share the story of Fernando to emphasize the win-win concept of career opportunities and corporate social responsibility.

Our 49 year old Portuguese friend and colleague Fernando Jorge de Aousa Correia started his career at Intercargo as a driver back in 2008, and at that time he spoke Spanish, Portuguese and some English and German. His family lived in Portugal while Fernando had settled in Denmark near the Headquarters of Intercargo Scandinavia, where he every day diligently transported cargo across Europe. He was satisfied with the economy boost and the extra support he could give to his family but missed spending time with them as he only visited them 2-3 times a year. We at Intercargo Scandinavia saw great potential in his enthusiasm and skills. We wanted to reward Fernando for the great effort and in 2012 we promoted him for a position in the administration, where he now is in charge of the equipment in the haulier department. This gave him and his family the opportunity to be reunited

and move to Denmark Quickly Fernando and his family learned Danish. His son and currently wife and daughter are now working at Intercargo. The daughter speaks Danish fluently, attends the local public school and is employed in a student job at Intercargo Scandinavia where she helps with administrative tasks.

We are proud of having ambitious and hardworking employees like Fernando and his family as a part of Intercargo Scandinavia. Not only their performances are impressive, but also how fast they have taken part of the Danish society and culture. Due to passion and dedication, each family member has in their own way, managed to create value in their work, among colleagues and in the local community.

– THE STORY OF A CAREER ADVENTURE AND BECOMING PART OF THE INTERCARGO FAMILY

”Intercargo is not just a company like every other, it’s more like one big family, and I am so grateful for being a part of this team. I could never imagine working anywhere else than at Intercargo.” - Fernando Jorge de Aousa Correia

FERNANDO


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FOOD SAFETY Intercargo Scandinavia has a high level of controls and procedures to secure quality and food safety. We have initiated our own internal quality system based on the overall guidelines and principles described in the ISO 22000 certification. As a transporter of foods we are very precautions and follow strict procedures to ensure the best quality for dry goods and especially temperature-controlled cargo. Therefore we take no risks when transporting food products and always have an excessive focus on temperature, fast delivery and sanitary conditions. It is in our interest that we deliver goods in a perfect condition and do not compromise food safety and people’s health. That is why we constantly monitor and communicate with our drivers through the Fleet Management System to control the exact temperature of the freight, most effective route and at all times keep the goods in a sanitary environment. Our well-established monitoring system does not only address food quality but do also take other social issues into consideration such as reducing food waste. By keeping a high standard and control timing and temperatures during transportation we make sure that the food we are transporting do not go to waste and benefit as much people as possible

ANTI-CORRUPTIONIntercargo Scandinavia condemns corruption and bribery. It is Intercargo Scandinavia’s policy that none of our employees are allowed to accept presents or contributions of more than symbolic value. This policy is applied to all employees regardless of their job position in the company. This is done not only to comply with law but also in order to do business without compromising our integrity. We want to secure the transparency in the market and set the standards that motivate the employees to act ethically and retain those principles and values the company operates within.

ANTI-CARTELWe do business in accordance to the competition law and therefore do not involve ourselves in arrangements that could be perceived as compromising the transparency in the market and influence the free movements in the market. We therefore condemn cartels and do educate our employees in not being involved in any matter that can be perceived as cartel agreements.

PROCEDURES TO PREVENT SMUGGLINGWe are aware of the risks that are connected with the movements across borders and how that can tempt smugglers to try to break into the trucks in order to hide and smuggle illegal substances or refugees. This is of course unacceptable and we have strong reservations towards smugglers who jeopardize the lives of immigrants, by trying to take advantage of the frequent traffic across borders. We condemn this behavior and will at all times notify authorities and police if we observe suspicious behavior near our trucks and cargo. We do not want to be a victim of smugglers, therefore we have secured our trucks and loads with lock and use surveillance in parts of the transportation process.

SPONSORSHIP AND CHARITIESIntercargo Scandinavia exist due to a strong will to succeed, team spirit, commitment, solidarity and innovative thinking. We support professional athletes who fight hard to achieve their goals as well as we like to take responsibility in our society by supporting local communities, sport initiatives and associations. That is why we support and collaborate with:

EXTERNALLYSOCIAL RESPONSIBILITY


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LUNA SPORTS CLUBBRASOV ROMANIA

ASSOCIATION OF TRUCK NOSTALIGIA Nordjysk Lastbil Nostalgi - Hirtshals

LA PENA DE DINAMARCA MALAGA FOOTBALL CLUB

HSK FODBOLD Football Hadsten- (super) Oldboys 45+

HADSTEN HÅNDBOLD Hadsten Handball - U14 Girls

WEST COAST UNITED FOOTBALL SERIES 5

FOOTBALL CLUB BERGENBOYS- OCEAN QUALITY

MIKKEL MAC Racing driver GT Open: Ferrari 488 GT3 and Danish Superturisme, also sponsored by Intercargo Scandinavia Le Mans 2016


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OBJECTIVES

Tolsagervej 6 . Hadbjerg . 8370 Hadsten . CVR nr: 20180498

Eco-driving

Road to Rail

European Modular System transportation

Employees

Continuously

2020

2018

2018

ACTIVITY

Keep educating all drivers in eco-driving and track performance for continuously improvements.

Increase train transportation by 30 % by 2020 in Norway.

Increase our fleet of EMS trucks.

Initiate at least two teambuilding- or social events to contribute to our good working environment

OBJECTIVEYEAR


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