I am pleased to confirm that Kopenhagen Fur reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rigths, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress (COP) we describe our actions to continually improve the integration of the Global Compact guiding 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.

Since we submitted our last COP in November 2017, we have continued to sustain and improve Kopenhagen Fur’s policies and performance within Human Rigths, Labour, Environment and AntiCorruption. We have also continued to look outwards and help our customers and partners to improve on these areas. We commit to continue this work in the years to come.

Sincerely yours,
Jesper Lauge Christensen
Chief Executive Officer

* Kopenhagen Fur adheres to the Universal Declaration of Human Rights.
* Kopenhagen Fur’s declared core values include respect, involvement, openness, transparency and the cooperative movement's belief that humans are strengthened
through collaboration. These values underscore the company's devotion to the Human Rights principles.
* All employees enjoy the right to free assembly and association, and three different labour unions are represented at Kopenhagen Fur.

* At Kopenhagen Fur we have a full set of policies regarding Human Rights for our employees. These include e.g. policies regarding stress, smoking, pregnancy, illness, consistent repeated work, health etc., which in several cases go beyond minimum law requirements.
* We have volunteer groups consisting of both management and employees, which work to improve these policies continuously.
* Kopenhagen Fur’s extensive policies on labour rights also show our commitment to human rights.

* We believe that focusing our efforts on our employees and, by extension, our owners (the Danish fur breeders), as these efforts create a good working environment and contribute to ensuring a stable staff situation in the organization.

As a Danish company, Kopenhagen Fur is governed by Danish working environment legislation, where the individual company is responsible for solving the safety and health issues, which may arise.
* We work systematically to improve the working environment in the organization.
* Moreover, Kopenhagen Fur has the fundamental view that work life should be a rewarding and developing part of the entire life cycle.
* Kopenhagen Fur wishes to promote a good working environment with both physical and mental wellbeing of all employees. As a result, work must be carried out safely based on objective assessments of the conditions of the working environment, which both in the short and long term can affect the physical, mental and general health.
* Kopenhagen Fur has a full set of Human Resources (HR) strategies and follow up procedures for all phases of employment: Recruitment, retention (including working environment standards), development and retirement.
* Further, Kopenhagen Fur has a strategy for continuous improvement in our production divisions (skin sorting)
* As also reported previous years, the strategy for continuous improvement includes goals to:
** Create willingness among employees to adapt by implementing short changeovers and increase the employees’ competence level
** Improve the employees’ working environment and working conditions through better use of our physical environment
** Achieve a high degree of employee involvement in problem solving and continuous improvement of processes and working conditions
** Create an awareness in the whole company of the importance of the production (skin sorting) divisions, and their contributions to the whole value chain

Working environment concerns all employees at Kopenhagen Fur and we believe in employee involvement. In daily life, it is the individual employee’s and manager’s mutual responsibility to ensure a good working environment.
* Kopenhagen Fur has an Occupational Health and Safety (OHS) organization made up of a general committee with representatives from management and employees, as well as six working environment groups. The function of the working environment committee is to plan and coordinate the local working environment groups’ work for safety and health, as well as prioritizing and ranking the tasks related to sustaining and improving Kopenhagen Fur’s working environment.
* Kopenhagen Fur prioritizes and encourages professional development for all groups of employees. Therefore, our HR department has a unit responsible for educational activities across all departments. The unit, called Fur Academy, aims to develop the organization by offering newly developed, recurrent and needs specific training for the individual employee.
* We have spent the last two years upgrading our low skilled employees' Danish, math, IT and English skills. The last two subjects have 1 million Danes problems.
* As part of the implementation of our devoted strategy for continuous improvement in our production divisions, Kopenhagen Fur continues to use TWI (Training within Industry) standards, process descriptions, and instructions to describe and learn more about the processes we work by. We evaluate and improve the processes based on the TWI standards.
* We are improving the employees’ competences by educating TWI trainers who can train their colleagues in our processes and thereby ensure that people have the right competences and deliver correct quality of work.
* Continuous improvement is, by definition, an ongoing process, and in 2019 we have continued to work with the initiatives, which we reported on the last years:
** Employees who operate machines on a daily basis are encouraged to find new methods to do the job. The respective methods suggested by the employees are tested, and if they get approved we document them as a new standard
** Train the trainer session, where 2-3 TWI trainers are coached to improve their skills and get the opportunity to challenge our standards
** Board meetings where relevant members of management meet to discuss Key Performance Indicators twice a week and operators once a week. If deviations from standards occur, we take action. Each time, we assess if the standard has to be reassessed and improved, or if training is called for

Kopenhagen Fur systematically works with improving working environment in the company through continuous improvements, deviation handling and preventive actions. Activities include risk assessments in connection with changes, systematic handling of near injuries and injuries, safety inspections, internal and external audits. Kopenhagen Fur makes workplace assessments and measures supplier satisfaction, employee satisfaction and working environment, including the amount of sick leaves and injuries.
* Regarding the work with continuous improvement in our production divisions, Kopenhagen Fur documents all TWI trainings in a competence matrix and evaluates the number of resources needed in a given process to remove vulnerability (i.e. we make risk assessments). Middle management tracks their respective teams’ performances.

* Kopenhagen Fur continuously works to implement protection of the environment in our daily business practices and to reduce our external environmental impact at corporate level. This includes ensuring sustainable and economically sound operations of Kopenhagen Fur’s buildings and processes within electricity, water, heating and cooling, in order to ensure that Kopenhagen Fur is an environmentally and resource-conscious business.
* In this area, we work with SDG no. 7, and commit to reducing energy consumption in own operations, including through using heating and cooling technology, and efficient lighting.
* As world leader within our field, Kopenhagen Fur also aims to inspire, help and nudge our partners to become aware of environmentally friendly alternatives within their respective fields.

Our R&D department currently undertakes research regarding the carbon foot print of mink production. We believe that within the next few years, we will be able to leave a neutral or even positive footprint by optimizing food composition, manure handling and use of the mink cadavers.

Moreover, we continously work to reduce the environmental impact of our auction house facilities.

Lighting:

* Kopenhagen Fur has continued to install LED lights, or other environmentally friendly lighting solutions in existing as well as new buildings, as reported in previous years’ COPs.
* We have focused on finding the best possible environmentally friendly lighting solutions for our sorting areas, where the right lighting is crucial in order for our experienced sorters to sort and grade fur skins correctly.

Ventilation and heating:

Kopenhagen Fur has continued to focus on reducing energy consumption and using energy more efficiently at company headquarters in Glostrup outside Copenhagen, also when it comes to purchases of new equipment.
* Formerly we have reported that we worked towards being able to reuse excess heat in internal heating loops. This work has continued over the past years
* We send our surplus heat to our neighbor - a district heating plant called Glostrup Forsyning. The heating plant estimates that the surplus heat received from Kopenhagen Fur will cover the annual consumption of 1000 single family homes in our neighborhood. To enable this process, we have installed a compressor station, which cools our storage areas and sends surplus heat from this process to the heating plant next door.

* Energy consumption is continuously measured and possible waste is located through the energy analysis system.

Kopenhagen Fur is situated in Denmark, which is one of the least corrupt countries in the world. However, Kopenhagen Fur is a center for international trade, and therefore we take our obligations to prevent corruption in an international perspective seriously.

Kopenhagen Fur continues to uphold the following values and procedures:
* One of Kopenhagen Fur’s declared core values is transparency. The transparency principle dictates that all customers or suppliers are treated equally, and that all terms and conditions, sales programs and sales reports are made public.
* Kopenhagen Fur has exact procedures for new customers and makes a great effort to know all our suppliers and customers.

* The principle of transparency is one of the most important elements of Kopenhagen Fur's core values. To ensure that all employees embrace this value, all new employees are educated in the principle – both specifically for their own area of expertise, but also for the entire company.
* We only carry out financial transactions to buyers and suppliers, if the transactions are related to trade with pelts and products related to the fur industry.
* Kopenhagen Fur has a restrictive gift acceptance policy, which applies to all employees.
* Kopenhagen Fur conducts additional and ongoing compliance checks of our business partners (fur breeders selling their skins at our actions and auction customers buying skins at the auctions). using an acknowledged compliance check system.

The transparency principle and our effective policies has entailed that Kopenhagen Fur has not experienced any cases of corruption within the last year.