To our stakeholders:

I am pleased to confirm that ArcusGruppen reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,
Otto Drakenberg
Group Chief Executive Officer
Arcus-Gruppen AS

consultancy firm BSCI. Since 2012, this has been put into effect in 2012 for all suppliers, including ArcusGruppen, along with a system that has been established for monitoring the provisions of the NAM Code of Conduct. In Norway, Vinmonopolet chose to implement its own reporting system, developed in collaboration with Det Norske Veritas. Systembolaget (Sweden) and Alko (Finland) have chosen another model, whereby in which Business Social Compliance Initiative (BSCI) monitors a selection of producers directly, through a limited number of annual audits.

Human rights and labor’s rights have been identified as priority areas for the Wine and Spirits business areas. This is aligned in connection with the Nordic alcohol monopolies (NAM) having developed a monitoring system for the suppliers, and is based on common guidelines for social responsibility (the NAM Code of Conduct). As a leading Nordic player, ArcusGruppen has had an active role in this work since 2008.

All employees have signed ethical rules that govern how employees are required to conduct themselves. The regulations also cover employees' behavior on the Internet and in social media.
Since 2012, ArcusGruppen has implemented the common Nordic Code of Conduct for all suppliers in South Africa, South America, Argentina and Australia, and we haves documented this through the common monitoring system for the Nordic monopolies. The work is monitored by purchasing managers throughout the whole group monitor compliance. This gives ArcusGruppen good oversight and control over its own value chain. In turn, this will contribute help to reassuring our customers that our products are produced in a responsible and sustainable way.

All incidents and consequences of such will be dealt with according to our code of conduct.
Behavior in violation of the ethical rules may have severely negative consequences for ArcusGruppen, and any non-compliance will be followed up. For employees, consequences may include an oral or written warning or, in serious cases, legal action, termination of employment or summary dismissal.
We apply by the Nordic Alcohol monopolies Code of conduct. Behavior in conflict or breach of these may cause severe consequences. Behavior in contrast or conflict with the Code of Conduct may result that our customers, especially the monopolies in Sweden, Norway and Finland, may terminate our vendor supplier relationship.

ArcusGruppen has long paid close attention to health, safety and environment. As a manufacturing organization, we are very aware of our responsibility for both safety and injury prevention.

in South Africa, South America, Argentina and Australia, and we haves documented this through the common monitoring system for the Nordic monopolies. The work is monitored by purchasing managers throughout the whole group monitor compliance. This gives ArcusGruppen good oversight and control over its own value chain. In turn, this will contribute help to reassuring our customers that our products are produced in a responsible and sustainable way, in accordance with ILO conventions 29 and 105.

ArcusGruppen continually concentrates on procedures, dealing with variances and adjusting the work situation for individual employees in accordance with our obligations as an Inclusive Working Life (IA) company. As a responsible alcohol producer, ArcusGruppen also has an active, well-functioning AKAN , (The social competence center for substance abuse and addiction problems), which provides a solid foundation for substance abuse prevention in the organization.

One of the Group's most important injury-prevention measures is an efficient and thorough reporting system for hazardous situations. Hazardous situations are considered to be resolved only when there is a specific action plan put in place.

Reporting shows a steady positive trend, and we are exceeding our targets by a good margin. In 2013 we had 7 injuries resulting in absence from work. This was more than our target of nil injuries, but total injuries were less serious and resulted in less work absence. ArcusGruppen has a target of nil injuries by 2016.

ArcusGruppen wishes to contribute to responsible and sustainable operations.
Targets figures have been established for energy efficiency and for the proportion of renewable energy. Our efficient production plant at Gjelleråsen gives a very large environmental gain, mainly because approximately 70 percent of the energy requirement for heating comes from our own geothermal plant.

By 2016, the present level of waste in production will be reduced by 10 percent in relation to production volume produced. This is a self-imposed requirement. Likewise, our own consumption of water will be reduced by 10 percent in relation to production volume produced.

To achieve these goals, we have established projects in the production line. Within a short time, we have already managed to identify quick wins, so that we even in an early stage of the process experience reduction of losses in the production.

All losses in production are measured, and analyzed. All deviations are monitored, analyzed for improving processes and routines.

At ArcusGruppen all employees are required to sign our code of conduct. We have a zero tolerance for bribery and established rules for gifts and representation.

All employees have signed ethical rules that govern how employees are required to conduct themselves. The regulations also cover employees' behavior on the Internet and in social media. The Group has a whistle-blower telephone number, which employees can use to speak out - either openly, or with full anonymity - about breaches of rules and regulations, and any other undesirable internal conduct internally.

In our code of conduct, there is a chapter describing how to handle gifts and representation. All employees have been informed of that if they are in doubt; they are obliged to check with their manager for guidance.

All incidents and consequences of such will be dealt with according to our code of conduct:
Behavior in violation of the ethical rules may have severely negative consequences for ArcusGruppen, and any non-compliance will be followed up. For employees, consequences may include an oral or written warning or, in serious cases, legal action, termination of employment or summary dismissal.