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Food Industry Sustainability. Issues significantly affecting the Food Industry Sustainability Obesity Waste from packaging Resources depleting CO2 reduction Mandatory carbon reporting Environmental footprint NGO Relationships. 1. Obesity is a serious, complex global health poblem. - PowerPoint PPT Presentation

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  • Food Industry Sustainability

  • Issues significantly affecting the Food Industry Sustainability

    ObesityWaste from packagingResources depletingCO2 reductionMandatory carbon reportingEnvironmental footprint NGO Relationships

  • 1. Obesity is a serious, complex global health poblemCurrently, 65% of adults are classified as overweight or obese (Hedley et al., 2004)It requires collective efforts of individuals, communities, businesses and governments to solveFood industry acts by:launching reduced calorie products products with nutritional information on packpromoting Active lifestyle because all calories count and energy intake from any source has to be balanced

  • Extending low- and no- calorie Portfolio ChoiceIn 2009, Coca-Cola Company itself launched more than 180 no- and low-calorie beverages, representing nearly one-third of all new product launches last year Classified - Internal useEnabling Consumers to make Informed Choices

    Coca-Cola supports fact based nutrition labeling and education and initiatives that encourage people to live active, healthy lifestyles.

    Classified - Internal use

  • 2. Packaging is not a waste...ToFromwhen it ends in landfill it creates environmental problemto produce new packaging we consume more raw materials

  • Recycle: Open loopUsed packages are a valuable resource to be used in many new products (cans in car spare parts production, PET in fibers production etc.)Reuse: Closed loopTo return empty PET bottles to the supply chain to produce new PET bottles rPET

    Internal use only...Packaging is a valuable resource

  • 3. What are the Opportunities for Resource EfficiencyNatural Resources are not EndlessWe have to find possibilities of conserving resources and not depleting them

    Lightweighting Saves resources in manufacturing, reduces the energy required for transport, and there is less material to recycle at the end of the process.Steel can reduced from 80g in 60s to 24g in 2008

    200 ml Contour RGB for the EUG market Reduced from 372g in 1995 to 230g in 2008

    500 ml Contour NR PET for the EUG market Reduced from 28g in 2006 to 21g in 2008 With Post Consumer Recycled Content

  • Plant BottleRenewable alternative to fossil resourcesPlantBottleTM made partially from plants, and 100% recyclable. Plant-based PETTM can currently replace up 30% of the normal PET in a bottle, which reduces the use of oil and the carbon footprint of the package. Additionally the bottle can be recycled as normal and reused in new bottles.

  • Post Copenhagen The climate challenges we face are real. Healthy debate and discussion is necessary. But collective action is needed to make a real difference for tomorrow. The EU has committed to a 20% emissions cut below 1990 levels by 2020, and to scaling up this reduction to 30%.The Europe 2020 Strategy has put more sustainable economic growth at the heart of the vision for the future, creating new jobs and boosting energy security. The EU should show leadership and become the most climate friendly region of the world - a lowcarbon economy by 2050.What business response will look like?

  • 4. CO2 is produced at each stage of product lifecycleGlobal consensus is that climate change is a major threat The battle against climate change must involve every business and every individualOil, electricity, heat is needed from farming the plants, through running offices, making the product, to distribution and sellingGovernments make actions to cut direct CO2 emissions Food industry should help in energy/resources efficiency

  • TCCC eKOfreshment ProgramEnergy Management Devices (EMDs) installation in fridges, reducing energy use by up to 35%.CHP combined heat and power plantEnvironment friendly + efficientSupplies green energy and heatEnergy surplus to supply national power gridImproving fuel efficiency of trucks and carsInvesting in modern hybrid trucksDriver educationOptimizing routes of transport (working with customers)Less package weight

  • 5. Carbon ReportingIs product labeling sufficient to encourage people to adopt more carbon-friendly lifestyles?France - pulled back mandatory carbon reporting due as of 2011Some companies volutarily put Carbon footprint on pack mostly in UKThe big question is how to communicate carbon footprint information in a meaningful and engaging way

  • A carbon footprint (CFP) measures the total amount of greenhouse gases emitted for each individual product during its whole lifecycle

  • Next steps in Environmental footprinting protecting the Water resources The WWF have identified freshwater as one of their top six global priorities to work with industry and companies on.People, agriculture and businesses can have adverse effects on rivers and wetlands. In some drier regions of the world, water shortages are already acute. Climate change and population growth will make things worse, particularly in the most vulnerable parts of the world.

    Businesses should regard water as being borrowed from the environment, and ensure it is returned in good condition to nature and people.

  • Building Successful NGO RelationshipsStrong NGO relationships enable companies to be active also in indirect fields of their business.

    Public/ private initiative partnership to conserve and protect the Danube River & Danube River Basin.$20 million investment with WWF over 5 yearsEurope: Danube river gorges, RomaniaPartnership with Vaclav Havels Foundation on conference series

  • Thank you for attention

    **Obesity is a serious, complex global health poblem -currently, 65% of adults are classified as overweight or obese (Hedley et al., 2004)Requires the collective efforts of everyone individuals, communities, businesses and governments to solve. We are doing our part to help develop workable solutions to address obesity by partnering with government, academia, health societies, and other responsible members of civil society.

    People consume many different foods and beverages, so no one single food or beverage alone is responsible for people being overweight or obese. But all calories count, whatever food or beverage they come from.

    Food industry is putting on markets reduced calorie products and products with clearer nutritional information on each pack.TCCC believes that all foods and beverages can have a place in an active healthy lifestyle that combines a sensible, balanced diet with regular physical activity.

    *We are committed to providing a variety of products for every lifestyle, life stage and occasion. All our products can be part of an active, healthy lifestyle that includes a sensible, balanced diet and regular physical activity. Consumers who want to reduce the calories they consume from beverages can choose from our continuously expanding portfolio of no- and low-calorie beverages as well as smaller portion sizes of our regular beverages. In 2009, we launched more than 600 new products globally, including portion-controlled options for our regular calorie beverages and more than 180 no- and low-calorie beverages, representing nearly one-third of all new product launches last year. We continued to increase the number of fortified products we offer and have a variety of products with added vitamins, minerals and other beneficial ingredients around the world. We believe in the importance and power of informed choice, and continue to support fact based nutrition labeling and education and initiatives that encourage people to live active, healthy lifestyles. We are doing our part to address obesity by partnering with government, academia, health societies, and other responsible members of civil society.In addition to our product and packaging innovations, we support nutrition education and physical activity initiatives in more than 100 countries and committed to have a physical activity program in every country where we operate by 2015.

    **Packaging is essential to food business. Without it we could not supply people with drinks, food. It contributes to convenience, safety, practicality, hygiene and of course aesthetics too. But we know that making packaging requires raw materials, energy and water. It is the biggest contributor to our carbon footprint. The disposal of used packaging can also have impacts, if it is landfilled or ends as litter in the environment. All these impacts can be substantially reduced through our own actions and by working collaboratively and imaginatively with others. Ultimately, we would like to achieve zero waste.In the past packaging went to waste after usage. But today packaging is collected because it is not waste but a valuable resource.

    *43 % of the Coca-Cola packaging in Europe is already recycled. PET packages can be recycled to a lot of new products incl. packages.

    e.g. Steel cans for cars, all other steels but also new cans (incl. beverage cans)PET is recycled to other products, e.g.. Fibres.

    The aim should be to return post-consumer packaging and packaging materials to the supply chain for use in new packages or products. So Coca-Cola developed a new technique to use recycled PET to produce new PET beverage bottles so called rPet (Returnable PET) Czech Republic is ready for using up to 20% of rPET with new PET bottles production

    One of the ways to conserve natural resources is by light weighting. This means taking weight and material out of the packaging.

    Coca-Cola packaging innovation teams are continually testing packages and looking for new ways to decrease raw material use

    While reducing the weight of bottles and cans, Coca-Cola is particularly careful to avoid simply transferring waste to another part of the packaging chain. For example, do not reduce a primary package so much that it requires additional secondary or transport packaging to avoid breakage.Stronger and lighter packagingTaking weight and material out of packaging has a number of environmental benefits. It saves resources in manufacturing, it reduces the energy required for transport, and there is less material to recycle at the end of the process. We have been redesigning both the bottles and cansfor our drinks and the secondary packaging, such as cardboard and shrink wrap, which we need when transporting them to our customers. In both cases we have had to strike a careful balance in ensuring that reducing packaging does not lead to increased waste from breakages or any risk to the quality and safety of our drinks. For example, carbonated drinks require stronger packaging than still drinks and juices. These initiatives have been highly successful and will increase overall packaging efficiency by 25%. We project that between 2004 and 2012 we will have grown our business by 40% without increasing the total weight of packaging or packaging related carbon emissions. Compared to business as usual that will mean 390,000 tonnes less packaging material and about 600,000 tonnes less CO2 emissions (equivalent to taking more than 10,000 cars off the road).*One of the biggest challenges to achieve sustainable packaging is to develop renewable alternatives to fossil resources, for example the use of petroleum for plastics.

    Coca-Cola is piloting a new PlantBottleTM made partially from plants, and 100% recyclable. It is currently made through an innovative process that turns molasses, a by-product of sugar production, into a key component for PET plastic.

    Plant-based PETTM can currently replace up 30% of the normal PET in a bottle, which reduces the use of oil and the carbon footprint of the package. Additionally the bottle can be recycled as normal and reused in new bottles.

    We are piloting the new PlantBottleTM in North America with Dasani waters and in Denmark with our three Coke brands. We are working with our suppliers and bottling partners to roll it our more widely.

    *Post Copenhagen European Commission set out strategy to reinvigorate global action. The Copenhagen Accord endorses the EU's core objective of keeping global warming below 2C above the pre-industrial temperature in order to prevent the worst impacts of climate change. To date industrialised and developing countries representing more than 80% of global greenhouse gases emissions have inscribed their emission targets or actions in the Accord. The EU Commission believes the EU must show leadership by taking tangible action to become the most climate friendly region of the world as part of the Europe 2020 strategy proposed on 3 March. The EU has committed to a 20% emissions cut below 1990 levels by 2020, and to scaling up this reduction to 30% if other major economies agree to do their fair share of the global effort. Ahead of the June European Council, the Commission will prepare an analysis of what practical policies would be required to implement the 30% emission reduction. The Commission will later outline a pathway for the EU's transition to becoming a lowcarbon economy by 2050. Consistent with the EU 2020 strategy, the goal is to come with intelligent solutions that benefit not only climate change, but also energy security and job creation.*There is an emerging global consensus that climate change is a major threat to our civilisation. Increased emissions of carbon dioxide and other so-called greenhouse gases are the principal cause of climate change. The battle against climate change must involve every business and every individual, and we want to set a good example. We are achieving sustained absolute reductions in the direct climate change impacts from our own operations, even though we are growing the business. We are also working hard with our suppliers and customers to reduce our indirect impacts from packaging and cooling. In all these situations the major source of carbon emissions is energy use. Increasing energy efficiency saves energy, reduces carbon and lowers costs. But using more renewable and low carbon energy sources would help all of us to make a real difference to our carbon budget.

    All food production business have nearly the same contributors to their carbon emissions

    For Coca-Cola Europe the split is following

    1. Vending machines/coolers 2. Manufacturing facilities3. FleetCC vending machines and coolers (Sales and Marketing Equipment) are by far the largest estimated contributors to greenhouse gases (GHG) emissions 45%They produce three times the estimated emissions of Coca-Cola manufacturing facilities and more than five times the emissions from the fleet. As a result, the sustainable refrigeration program is the cornerstone of Coca-Cola energy and climate protection efforts. But nevertheless Coca-Cola also cares about energy efficiency in manufacturing and logistics.The great impact the coolers have on the carbon footprint are mainly based on their energy consumption.

    **To improve energy efficiency and reduce emission of greenhouse gases in cold drink equipment The Coca-Cola Company will focus on conversion to HFC-free insulation materials and refrigerant, plus improving energy efficiency.

    A significant part of TCCC indirect carbon emissions come from the energy required in cooling equipment to keep the drinks chilled and refreshing. By 2010 all new coolers will be fitted with Energy Management Devices (EMDs), reducing energy use by up to 35%.The Hydrofluorocarbon (HFC) gases used in the cooling process are a potent greenhouse gas. Worldwide, all our new cooling equipment will be HFC-free by 2015. In Europe, already 70% of new coolers will use natural refrigeration in 2010.Combined Heat and Power (CHP) plants generate electricity by burning gas, but also make use of the heat from this process, which would otherwise be wasted.This makes them very efficient. Coca-Cola Hellenics pilot unit in Dunaharazti, in Hungary, cut the plantscarbon emissions by 43%, saving 18,000 tonnes of carbon. Coca-Cola Hellenic is committed to building 10 more CHP units in Europe. In 2009, three new plants were completed in Romania, Italy and Northern Ireland.Transport contributes relatively little to Coca-Cola carbon footprint. Coca-Cola is trialling hybrid diesel-electric delivery trucks in Brussels, Vienna and Berlin to see how they perform in urban traffic. They expect a fuel saving of around 30% compared to conventional vehicles. Additional fuel savings of around 10 per cent can be achieved through eco-driving training courses.Coca-Cola is also working with the largest customers and other companies for logistical efficiencies and reduced truck journeys. In the UK, for example, Coca-Cola Enterprises uses 10% of Tescos rail freight capacity and ASDA backhauls from the Wakefield factory. In France, Coca-Cola Enterprises has worked with Danone and Kronenbourg to share full truck loads to Carrefour.Furthermore, reduced packaging weight helps to lower the carbon emission as well.

    At a business level, we already have a good general knowledge of where we use carbon, and in what quantities. Our overall usage is going down as we adopt efficiency measures and seek renewable and low carbon energy sources. To go further, we recognise the need for better information at the product level and are leaders in the emerging technique of carbon footprinting. The next big question is how to communicate our carbon footprint information in a meaningful and engaging way. We are not convinced that product labelling is sufficient to encourage people to adopt more carbon-friendly lifestyles. So we are testing the benefits of different ways of providing Coke-style eco-information. *For a Coke, this would include sourcing and producing the packaging materials; growing and processing the ingredients; transporting them; manufacturing, distributing and chilling the product to recycling the empty package.However, depending on the methodology used, the available data and the national energy grid, the results can vary significantly. Coca-Cola Enterprises and the Carbon Trust led a ground-breaking carbon footprint study to develop a new methodology (PAS 2050), which has been driving the debate in the UK and in other countries. The detailed results of this study are available on the Internet at www.cokecorporateresponsibility.co.uk We are working with the Carbon Trust and other stakeholders to work out how best to make product carbon footprinting a practical reality for businesses and brands.www.carbon-label.comwww.carbontrust.co.uk*Water is an infinitely renewable natural resource, but is nevertheless in short supply in some parts of Europe. Meeting the needs of people, agriculture and businesses can have adverse effects on rivers and wetlands. In some drier regions of the world, water shortages are already acute. Climate change and population growth will make things worse, particularly in the most vulnerable parts of the world. Water is the principal ingredient of all our drinks. It is essential directly in their production, and indirectly in growing the fruit, spices and sugars from our agricultural supply chain. Without water we would not have a viable business. That is why water stewardship is our principal sustainability concern.

    Coca-Cola can reduce the water needed by making the operations more efficient. Between 2002 and 2006 Coca-Cola managed to reduce global water consumption by over 6% while sales volume increased by nearly 15 %. Coca-Cola committed to set global targets for continued water use efficiency in 2008.

    Coca-Cola and WWF teamed together as we wanted to improve how we used water in the system

    Firstly Coca-Cola conducted a comprehensive risk analysis of water resources in the Coca-Cola system. Then with WWF, Coca-Cola developed an interactive, plant-level water efficiency toolkit, harvesting best practices from throughout the system.

    The tool defined: - the main water consumers- highlighted improvement opportunities- calculated financial savings

    The results have become a database for benchmarking and best practices

    Coca-Cola do more than focus on reducing water consumption in their own businesses. Its our aim to help other business partners e.g. reducing water stress of our ingredients by working with the supply chain (sugar).

    *Projects in Europe

    The Danube river system is the most international in the world, spanning 19 countries with over 80 millionpeople. The river and its many tributaries are important for wildlife for commerce and for people.In 2005 Coca-Cola set up the Green Danube Partnership with the International Commission for the Protection ofthe Danube River Basin (ICPDR) to take on this challenge.- The partnership is a public/ private initiative to conserve and protect the Danube River & Danube River Basin.- Raise awareness through support for Danube Day.- Efforts to improve the companys practice in water management.- Funds for the Danube-Drava National Park.Danube Challenge in Slovakia and Austria

    Water Stewardship WWF: A Transformational PartnershipIn 2007, we announced multi-year partnership with WWF supported by $20 million grant from TCCC

    WWF is the worlds leading conservation organisation, working in 100 countries for nearly half a century.With the support of almost 5 million members worldwide, WWF is dedicated to delivering science-based solutions to preserve the diversity and abundance of life on Earth, halt the degradation of the environment and combat climate change. Freshwater ecosystems are a top priority for WWF.Our multi-year partnership recognises the fact that water is fundamental to both of us. By uniting ournetworks and people we believe we can do more than we could on our own. Our aims for the partnership are to: Measurably conserve seven key freshwater river basins, including the Danube Improve the efficiency of our water use by 20% Support more efficient water use in our agricultural supply chain, beginning with sugar Decrease our absolute carbon dioxide emissions and energy use to 2004 levels, and by a further 5% in developed countriesUnder the umbrella of the global partnership, numerous local cooperations have developed inEuropean countries, for example in Spain, Poland and Belgium through Hungary.

    First-ever commitment by a business system to define and achieve water neutrality.Working with WWF, UN, WBCSD, Nestl, Twente University, academics & others to define methodology.Examples: rainwater harvesting, community watershed protection, reforestation, irrigation efficiency, safe water access.Currently support over 120 community water projects in 50 countries to protect and preserve water resources and help enable greater access to water and sanitation; partners include USAID, CARE, UNDP & WWF.Local impacts through Water Scarcity Guidelines.

    Here are two examples: 1 Recharging the aquiferThis project is has constructed over 100 recharge shafts in the Great India Desert. The shafts are located in open areas where rainwater collects, but does not percolate into the ground. The recharge shafts provide a pathway for the collected rainwater to flow into the ground and, through a reverse filter system, recharge the groundwater for nearly 15,000 local villagers. **