Arla Foods Consolidated Annual Report 2021
136
Arla Foods Consolidated Annual Report 2021 / Environmental, social and governance (ESG) data / Independent Auditor's reasonable Assurance Report
INDEPENDENT AUDITOR'S REASONABLE ASSURANCE REPORT
Contents
TO THE STAKEHOLDERS OF ARLA FOODS AMBA
We have been engaged by Arla Foods amba to perform
a reasonable assurance engagement, as defined by
International Standards on Assurance Engagements,
hereafter referred to as the engagement, to report on
Arla's environmental, social and governance figures in
the ESG statements (the 'Subject Matter') contained in
the annual report on pages 121-135 for the period
1 January 2021 to 31 December 2021 (the 'Report').
Criteria applied by Arla
In preparing the Subject Matter, Arla applied the criteria
described on pages 121-135 (the 'Criteria'). The Subject
Matter needs to be read and understood together with
the reporting criteria, which management is solely
responsible for selecting and applying. As a result, the
subject matter information may not be suitable for
another purpose.
The absence of an established practice on which to
derive, evaluate and measure the Subject Matter allows
for different, but acceptable, measurement techniques
and can affect comparability between entities and over
time.
Management's responsibilities
Arla's management is responsible for selecting the
Criteria, and for presenting the Subject Matter in
accordance with that Criteria, in all material respects.
This responsibility includes establishing and maintaining
internal controls, maintaining adequate records and
making estimates that are relevant to the preparation of
the subject matter, such that it is free from material
misstatement, whether due to fraud or error.
Auditor's responsibilities
Our responsibility is to express an opinion on the
presentation of the Subject Matter based on the
evidence we have obtained.
We conducted our engagement in accordance with the
International Standard for Assurance Engagements
Other Than Audits or Reviews of Historical Financial
Information (ISAE 3000) and additional requirements
under Danish audit legislation. Those standards require
that we plan and perform our engagement to obtain
reasonable assurance about whether, in all material
respects, the Subject Matter is presented in accordance
with the Criteria, and to issue a report. The nature,
timing, and extent of the procedures selected depend
on our judgment, including an assessment of the risk of
material misstatement, whether due to fraud or error.
Our independence and quality control
We have maintained our independence and confirm
that we have met the requirements of the Code of
Ethics for Professional Accountants issued by the
International Ethics Standards Board for Accountants
and additional requirements applicable in Denmark and
have the required competencies and experience to
conduct this assurance engagement.
EY Godkendt Revisionspartnerselskab is subject to the
International Standard on Quality Control (ISQC) 1 and
thus uses a comprehensive quality control system,
documented policies and procedures regarding
compliance with ethical requirements, professional
standards and applicable requirements in Danish law
and other regulations.
Description of procedures performed
As part of our examination, our procedures included:
• Interviews with relevant personnel to understand the
business and reporting process during the reporting
period, including the process for collecting, collating
and reporting the Subject Matter and inspected
relevant documentation
•
•
•
•
•
Checking that the calculation criteria have
been correctly applied in accordance with the
methodologies outlined in the Criteria
Undertaking analytical procedures to support the
reasonableness of the Subject Matter
Identifying and on a sample basis testing assump-
tions supporting calculations of environmental
figures on pages124-129.
When feasible testing, on a sample basis, underlying
source information to check the completeness
and the accuracy of the data. When not possible to
obtain underlying source information, performing
procedures such as recalculation and comparison to
financial metrics or statistical modelling to confirm
the logic of data
Performing two physical site visits in Denmark and
Germany and two virtual site visits in Argentina and
the UK to visually inspect operations, make inquiries,
test that processes and controls are conducted in line
with our understanding, inspect documents on a
sample basis and evaluate if site follows group
reporting guidelines
• Interviews with external specialists responsible for
providing input to the calculations of the animal
welfare and farmer climate data to evaluate the
competence, capabilities and objectivity as well as
evaluate whether the results of the external
specialist's work are adequate for our purposes
Evaluating the consistency of the information in the
Subject Matter with the information in the annual
report which is not included in the scope of our
examinations
•
We also performed such other procedures as we
considered necessary in the circumstances.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a reasonable
basis for our opinion.
Conclusion
In our opinion, Arla's environmental, social and
governance figures in the ESG statements for the
period 1 January 2021 to 31 December 2021 are
presented, in all material respects, in accordance with
the criteria described on pages 121-135.
Aarhus, 9 February 2022
EY Godkendt Revisionspartnerselskab
CVR no. 30700228
Henrik Kronborg Iversen
State Authorised Public
Accountant
MNE no. 24687
Carina Ohm
Partner
Head of Climate Change
and Sustainability Services
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