lessons in sustainability · annual sustainability reporting – distribution center, repackers,...
TRANSCRIPT
Lessons in Sustainability 10:30-11:45 A.M.
Moderator: KATHERINE DIMATTEO Executive Director, Sustainable Food Trade Association
WENDY BEHR Sr. VP of Research, Development & Sustainability, WhiteWave Foods
SHAUNA SADOWSKI Director of Sustainability, Annie’s, Inc.
LINDA BROWN Executive Vice President, Scientific Certification Services
All Things Organic Conference presented by
www
Lessons in Sustainability All Things Organic September 18, 2014
presented by Katherine DiMatteo
Build the capacity of the organic food trade to transition to
sustainable business models.
Mission
How does your company define sustainability?
Green vs. Sustainability
Green
• Detail focused
• Immediate Action
• Environment
• Lacks common definition of success
Sustainability
• Whole systems focus
• Strategic
• Triple bottom line (people, profit, planet)
• Capable of defining success
Introduction to SFTA & Sustainability
Sustainability is Systems thinking Pay attention to what we take from the earth
Pay attention to what we make & leave in the air, soil, water and the entire ecosystem
Maintain biodiversity
Respect the rights of all people, both local and distant
Introduction to SFTA & Sustainability
ABCD methodology
Awareness Creative
Solutions Future · +"'
..
• "
0 0(
ent • • • • • , ,
Baseline
f
....·' I
Priorities",!;· y l ' t ·""
• p I I • f t ; . f I I • p r Does i t move us in the right direction?
Is it a flexible platform? Is it a good return on investment?
IJ
Formalizing your Sustainability Program
Process Mapping
Data Collection
Writing your sustainability
report
Organics | Distribution | Energy | Climate change | Water | Solid Waste | Packaging | Labor and Ethica Sourcing | Animal Rights | Education | Governance
11 Declaration Areas: A tool to help focus your sustainability efforts
Values - Branding
expectations - Ethos of the
company - Employee Retention - Innovation
Opportunities - Cost savings - Competitive Advantage - Customer Loyalty - Industry leader - Efficiencies
Regulation - Legal requirements - Industry standards - Market expectations
Risks - Cost to react - Seen as a laggard - Customer push back
Why bother with Sustainability?
THANK YOU 413-624-6678 www.sustainablefoodtrade.org
2014 SPONSORS
From Farm to Fork | Expo East, September 18, 2014 Sustainability at Annie’s
Who is Annie’s?
Real and authentic roots – Founded by a real person
Great tasting products with broad appeal – More than 145 products in 35,000 retail locations
Natural and organic ingredients – No artificial flavors, synthetic colors or preservatives
Socially and environmentally responsible – Purpose driven
Annie’s Homegrown co-founded by Annie Withey in 1989
Product portfolio
FY2014 Net Sales by Product Category Meals
Snacks
Dressings, condiments and other
Macaroni & cheese Organic canned meals Pasta and skillet meals Frozen pizzas
Cheddar bunnies Bunny grahams Fruit Snacks
Dressings Condiments Oils
Snack mix Granola bars Pretzels
Snacks 39%
Dressings, Condiments & other
13%
Meals 48%
Cultivate a healthier, happier world by spreading goodness through nourishing foods, honest words and conduct that is considerate and forever kind to the planet.
Annie’s Mission
Annie’s Inc. | 16
Our path towards sustainability Farm To Fork
Annie’s Inc. | 17
To use our business to drive positive change, we ask:
Carbon Footprint Allocation across the Lifecycle of Annie’s Products
Where Are Our Greatest Impacts?
Annie’s Inc. | 18
We prioritize our work in the supply chain because this is where our greatest impacts occur and where we have greatest opportunity to effect positive change.
1. Ingredients 2. Packaging 3. Manufacturing
1. Build a more resilient supply chain
Annie’s Inc. | 19
How do we make a better product? Start with better ingredients
Annie’s Inc. | 20
Organic is the foundation of our sustainability efforts. Organic contributes to sustainability by:
– Purifying natural resources Not polluting our soil, air and water with harmful agrochemicals or GMOs
– Protecting people Reducing farming community’s and consumers’ exposure to toxic, persistent pesticides
Commitment to organic ingredients we purchased 42 million pounds of certified organic ingredients in FY2014; over 108 million pounds in 3 years.
Annie’s Sustainable Sourcing Strategy Focus on key ingredients: wheat, dairy, cocoa, and sugarcane
Committed to Non-GMO Actively engage on federal and state initiatives; support the Non-GMO Project
INGREDIENTS
Our approach to sustainable packaging focuses on: • Optimized design and material use • More sustainable inputs, like recycled
content and renewable energy • Recyclable outputs
• More than 90% of our packaging (by weight) is recyclable Joined How2Recycle
Packaging: Improving resource use
PACKAGING
Monthly data collection that contributes to Annie’s annual sustainability reporting – Distribution Center, Repackers, and Tier 1 – Energy, Waste, Water
Sustainable Practices Survey – Energy and GHGs, Water, Waste, Priority Chemicals, Organizational Commitment
82% provided data, demonstrating their commitment to sustainable business practices
Green Bernie Award Supplier Code of Conduct for Manufactured Goods
Manufacturing: Engagement and efficiencies
Annie’s Inc. | 22
MANUFACTURING
o We assess our greenhouse gas emissions according to the GHG Protocol
– Measure Scope 1, 2 and 3 o Within Scope 3, we include business travel, employee commuting,
warehouse/repackers, and our Tier 1 suppliers o Absolute emissions are up, but relative emissions vis-à-vis revenue
growth declined
Measuring Our Carbon Footprint
Annie’s Inc. | 23
Employee Engagement Gym and Fitness classes Sustainability education 4x year Sustainability Incentives Commuter points
– 16% of employees use our green commuting program
Eco-home improvements Office Green LEED Gold headquarters; certified Bay Area
Green Business Internal data on energy, waste and water use
– 76% waste diversion rate
2. Walk the talk at home OWNED OPERATIONS
3. Inspire a bigger impact Industry Partners Grow organic Renewable energy/Climate action Charitable contributions Growing the next generation of food leaders
– FoodCorps, Grants for Gardens, Ag Scholarships
$1.3 million donated over 3 years Volunteering
86% of employees volunteered with nonprofit groups, averaging 13 hours per person. Up 144% over previous FY
INSPIRE AND EDUCATE
Metrics tracking Internal sustainability metrics go across
multiple departments Reporting through SFTA, CDP Track more than 100 metrics across 11
areas Sharing our story Annual public facing report
4. Manage for results
TRACK AND MEASURE
Thank you!
© Scientific Certification Systems | 28 © SCS Global Services | 28
Presented at All Things Organic, Baltimore September 18, 2014
Linda G. Brown
SCS Global Services
Lessons in Sustainability The Drive toward a National Sustainable
Agriculture Standard
© Scientific Certification Systems | 29 © SCS Global Services | 29
SCS Background
30 years – Founded 1984, standards developer and 3rd
party certification body
Mission: Promote sustainable decision-making and policies in the public and private sectors to safe-guard our environment, support workers and communities, and raise the standard of living for all.
Agricultural product claims: sustainability, organic, food safety, pesticide residue free, antioxidants, flavor, and more.
Sustainability standards development participant: o agriculture (ANSI) o forestry (FSC) o fisheries (MSC / ASC) o biofuels (RSB) o building materials (ANSI) o furniture (BIFMA)
© Scientific Certification Systems | 30 © SCS Global Services | 30 © SCS Global Services | 30
Source: Dan Rossman [email protected]
Michigan State University Extension
Market Growth Rate
Organic is a huge success story
Growth in Organic Sales (Billion $)
Source: Organic Trade Association
2011 Organic Industry Survey
Certified organic acreage vs. total U.S. Selected crops, 2011
. . . but there’s a long way to go
Source: USDA Economic Research Service
© Scientific Certification Systems | 31 © SCS Global Services | 31 © SCS Global Services | 31
In the meantime, sustainability has gained traction with consumers US Adults Support Sustainable Food 69% say it is important that foods are produced in a sustainable manner. Top Sustainability Characteristics Valued by Consumers 1. Conserving the natural habitat (35%) 2. Ensuring a sufficient global food supply (32%) 3. Reducing the amount of pesticides used to produce food (30%) 4. Ensuring an affordable food supply (24%) International Food Information Council (IFIC) , 2012 “Consumer Perceptions of Food Technology” Survey.
. . . and within the food industry
State of the Specialty Food Industry 2012 (Mintel International and SPINS, The National Association For The Specialty Food Trade)
© Scientific Certification Systems | 32 © SCS Global Services | 32 © SCS Global Services | 32
Organic Local
Integrated Pest Management Environmental Protection
Social Responsibility Economic Viability
Genetic Engineering Food Safety
No help from FTC
Digging Deeper: What Does Sustainability Mean, Anyway?
© Scientific Certification Systems | 33 © SCS Global Services | 33
Explosion of Efforts to Identify Sustainability Metrics and Set Standards
Rainforest Alliance Certification Fair Trade Certification Food Alliance SCS Sustainably Grown The Sustainability Consortium Keystone Field to Market Metrics Stewardship Index for Specialty Crops Global G.A.P. Equitable Food Initiative Individual Food Companies and Retailers: Supply Chain Specs
© Scientific Certification Systems | 34 © SCS Global Services | 34 © SCS Global Services | 34
Assured Food Standards (AFS)
European Initiative for Sustainable Development in Agriculture (EISA)
Environmental Farm Plan (Canada EFP)
Fairtrade Standards (FLO)
Food Alliance
Global G.A.P.
IOBC Guidelines for Integrated Production
LEAF Marque
Protected Harvest
Rainforest Alliance Sustainable Agriculture Standard (SAN)
Sustainable Agriculture Practice Standard (SCS-001)
Basel Criteria for Responsible Soy Production
Common Code for the Coffee Community (4C)
Roundtable on Sustainable Palm Oil (RSPO)
Roundtable on Responsible Soy (RIRS)
UTZ Certified (coffee)
EU Organic Scheme (EU 834/2007)
International Federation of Organic Agriculture Movements (IFOAM)
USDA National Organic Program (NOP)
WHOLE FARM SUSTAINABILITY
CROP SPECIFIC
ORGANIC
Standard element is aligned with the intent of the SAI Platform Principle
Standard element is less rigorous than the SAI Platform Principle
Standard does not contain the SAI Platform Principle
SITE
SEL
ECTI
ON
AN
D M
ANAG
EMEN
T
PLAN
TIN
G M
ATER
IAL
INTE
GR
ATED
CR
OP
MAN
AGEM
ENT
SUST
AIN
ABIL
ITY
MAN
AGEM
ENT
SYST
EM
ACC
ESS
TO IN
FOR
MAT
ION
AN
D S
UPP
OR
T SE
RVI
CES
AFET
Y, Q
UAL
ITY
AND
TR
ANSP
AREN
CY
FIN
ANC
IAL
STR
UC
TUR
E
REL
ATIN
O T
O T
HE
MAR
KET
DIV
ERSI
FIC
ATIO
N
SOIL
CO
NSE
RVA
TIO
N
WAT
ER C
ON
SER
VATI
ON
BIO
DIV
ERSI
TY C
ON
SER
VATI
ON
INTE
GR
ATED
WAS
TE M
ANAG
EMEN
T AN
D C
RO
P BY
PRO
DU
CT
MAN
AGEM
ENT
ENER
GY
CO
NSE
RVA
TIO
N
AIR
CO
NSE
RVA
TIO
N
LABO
UR
CO
ND
ITIO
NS
TRAI
NIN
G
STR
ENG
THEN
ING
LO
CAL
EC
ON
OM
Y
Lack of consistency
SAI Platform Findings 2009
SCS Rainforest Alliance
Fairtrade
GLOBALG.A.P.
EISA
EU Organic USDA Organic
© Scientific Certification Systems | 35 © SCS Global Services | 35
Enter LEO-4000: National Sustainable Agriculture Standard Developed under the American National Standards Institute
(ANSI) process
Voluntary
Multi-stakeholder
Consensus-based
Non-proprietary
Open, transparent process
Administered by Leonardo Academy, a 501(c)(3) ANSI accredited standards developer
Committee representation – Producers, Users, Environmental and Social NGOs, Academics, Government, Other Stakeholders
+ Full participation by observers (except voting)
Goal: To leverage the marketplace to transform agriculture toward sustainability
© Scientific Certification Systems | 36 © SCS Global Services | 36
Need for a National Standard Findings of the Multi-Stakeholder Needs Assessment Task Force
Engender common understanding of sustainability Protect and conserve natural resources Create safe, healthy work environment Support farm communities Ensure inclusivity and accessibility Encourage innovation Set a national baseline Provide basis for international harmonization Stimulate producer incentives and market rewards Prevent greenwashing
© Scientific Certification Systems | 37 © SCS Global Services | 37
Scope of LEO-4000
Farm Crops Food Other crops (fiber, etc.)
Farm Animals
Beyond the Farm Gate
© Scientific Certification Systems | 38 © SCS Global Services | 38 © SCS Global Services | 38
© Scientific Certification Systems | 39 © SCS Global Services | 39
Status Draft released for public
comment December 6, 2013
Committee is now reviewing comments
© Scientific Certification Systems | 40 © SCS Global Services | 40
Basic Structure
Self assessment (for internal use) or third party assessment (for market claims)
Supplemental Resource Guide
Bronze
Silver
Gold
Platinum
4 tiers of performance:
To provide an “on-ramp” for entry level
To promote continuous improvement
required and optional indicators
© Scientific Certification Systems | 41 © SCS Global Services | 41
Producer Sustainability Plan Central Management Tool
Describes land, resources, and current practices and baselines.
Identifies goals, strategies and plans for meeting goals.
Documents results observed, and outcomes achieved.
Identifies key criteria and indicators to be monitored to improve performance or avoid harm.
© Scientific Certification Systems | 42 © SCS Global Services | 42
Comprehensive Issues Addressed Environmental Production System Soil Resources Water Resources Air Resources Climate Change Biotic Resources Energy Resources and Use Waste Handling
Many opportunities for Organic growers
to stand out.
© Scientific Certification Systems | 43 © SCS Global Services | 43
Comprehensive Issues Addressed Social Work Agreements Wages Working Hours Child and Voluntary Labor Non-Discrimination Freedom of Association Violence and Harassment Human Resource Management Health and Safety Workplace Conditions Worker Housing Stakeholder Community Engagement Local and Regional Community
Sourcing, Sales, Services, and Support
© Scientific Certification Systems | 44 © SCS Global Services | 44
Comprehensive Issues Addressed Economic Scope of Business Planning and Reporting Continuity Risk and Resilience Management Long-Term Land Tenure and Lease Terms Product Quality –Food Safety
© Scientific Certification Systems | 45 © SCS Global Services | 45
Many Improvements Needed to Make it More Practical to Use
Thoughtful comments need consideration
Eliminate redundancies
Ensure auditability of indicators
Delineate small farmer requirements
Shorter overall
Checklist for Producer Sustainability Plan
Supplemental Resource Guide
© Scientific Certification Systems | 46 © SCS Global Services | 46
Steps to Standard Finalization and Launch
Comments reviewed, voting
Standard modified as needed
Decision to release for second public comment
Pilot testing
Standard forwarded to ANSI
ANSI approval determination
© Scientific Certification Systems | 47 © SCS Global Services | 47
www.SCSglobalservices.com 2000 Powell St., Suite 600
Emeryville, CA 94608
510-452-8000
Lessons in Sustainability 10:30-11:45 A.M.
Questions?
All Things Organic Conference presented by