Palsgaard hits carbon neutral target: 'Sustainability is a competitive advantage'

The Danish company set itself the target of making its production facilities carbon neutral in a decade back in 2010. The group revealed last week that it has successfully cut its net carbon emissions from 12,029 tonnes in 2010 to zero in 2018.

Over that period, it has achieved CO2 reductions totalling 56,175 tonnes – equivalent to the amount produced by 4,885 European households in a year.

Palsgaard’s six global production sites are now all carbon-neutral, mainly through changing sources of energy. Strategies have included new heat recovery and insulation techniques, a switch from heavy fuel oil to certified biogas, and the use of renewables. At Palsgaard’s main site in Denmark, all electricity is sourced from hydro power, and indoor heating is powered by burning home-grown straw rather than oil. The company’s Dutch factory has over 800 solar panels and has run off only renewable energy since the start of 2018.

Palsgaard has also partnered with the UN and purchases its official carbon credits to offset emissions. This, said CEO Jakob Thøisen, was critical in order to reach carbon neutrality in markets where the green energy infrastructure is not fully developed and where offsetting is used primarily for the group’s Malaysian operations.

“With ambition and innovation, sustainable ingredient production is possible. Achieving CO2-neutral status ahead of schedule has given us extra energy to continue making a difference,”​ Thøisen said.

Palsgaard, which is celebrating its centenary this year, is now planning a range of new green initiatives, including a new solar energy park at its headquarters in Denmark. Thøisen believes that these initiatives are providing the company with a competitive advantage, and the group plans to double its production capacity in the next four years to keep pace with demand for its products. 

We visited the group’s HQ in Denmark last week to learn more about Palsgaard’s sustainability journey. Watch the video for our full interview with Thøisen.

Additional B-roll/cutaways provided by: Palsgaard, Pexels, Videezy​