Compliance with environmental laws and regulations form the basis of our environmental management. Our ambition is full compliance, a goal that was supported in 2002 by improved reporting through our new Environmental Management System.

We have selected a number of indicators to evaluate our environmental compliance: breaches of regulatory limit values, regulatory limit values with repeated breaches, and accidental releases. In addition, we report the number of complaints, although this is not directly linked to regulatory compliance.

Environmental authorities stipulate a number of conditions in the production approvals of our factories. For some of these, regulatory limits are set for emissions of particular substances to the environment. We regularly monitor and document our compliance with environmental requirements.

A total of 29 breaches of regulatory limits occurred in 2002, a significant reduction from the 68 breaches in 2001. The observed improvement relates specifically to the fact that limits for the volumes of wastewater discharged at our production site in Clayton, North  Carolina, were raised with permission from the local environmental authority, and a general increased environmental awareness among our employees.

Besides two breaches of the permitted flow limit at Clayton, the breaches related to elevated emissions of ethanol at the production site in Bagsværd, Denmark, and deviations in permitted pH levels of wastewater at the production sites in Bagsværd and Hillerød, Denmark. No breaches were severe, and the local authorities accepted our corrective and preventive actions.

We recorded no accidental release of genetically modified microorganisms (GMMs) in 2002.

We have had ten other accidental releases of liquid waste and chemicals to the external environment. The environmental impact of the reported releases was negligible. All accidental releases are reported to the environmental authorities and actions are taken in order to limit the environmental impact and to avoid similar incidents in future.

Our policy and target is to avoid any accidental release, and to prevent and mitigate possible damage to the environment. A thorough risk analysis of the handling of GMMs is always performed prior to commencing operations. As of 2002, due to the implementation of the ISO 14001 Environmental Management System, we are now subjecting other activities to risk analysis, including storage of chemicals, cooling facilities, water injection facilities and logistics related to safe transport of chemicals. This has lead to physical
changes in facilities, painting of sewers to indicate safe areas for liquid disposal, moving of
storage areas that pose a risk and training employees to increase focus on prevention of accidental releases and potential pollution.

The system for reporting has been improved and knowledge of its existence has increased
dramatically with the ISO 14001 system. All reports are investigated according to the Environmental Management System and better practice is shared whenever relevant.

We received seven complaints from residential neighbours all regarding noise from various sources. This is a significant decrease from 2001, when we received a total of 32  complaints. The complaints in 2002 related to a road sweeper, a construction site, a relief steam valve and a facility in general. We learn from every complaint we receive and our aim is to respond quickly and efficiently. A constructive dialogue with our neighbours helps us to resolve problems. In 2002 we solved all cases by changing work procedure or taking noise-reducing actions.

The site reports contain more information on compliance and complaints at specific locations.