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Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
Sustainability and agroindustry
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Sustainability and agroindustry

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  • 1. Sustainable development: Responsibilities and initiatives of agribusiness companies June 7th, 2011 Marianne Fernagut Environmental Resources Management (ERM)Delivering sustainable solutions in a more competitive world
  • 2. Sustainability “… being a bit like world peace – a very large concept and even if we never quite get there; its the best path to take.” » Bob Carsson, Vion Food UKDelivering sustainable solutions in a more competitive world
  • 3. Overview Measure Sustainability Reduce Communicate Food and drink industry Case studies Sustainability reportingDelivering sustainable solutions in a more competitive world
  • 4. Sustainability in food and drink sector Food security Transport and distribution Water use and Human management Health Environment Consumers Fair trade Packaging and Social waste Climate change/ management Energy carbon footprint efficiency Employment Resource Supply chain efficiency management Economic Figure 1: Key Net Sales Investments sustainability Financial issues in the food Capital and drink sectorDelivering sustainable solutions in a more competitive world
  • 5. Drivers for sustainability… Avoid Risks • Financial risks  Physical impacts of Climate Change  Carbon = $$$ (EU-ETS, other cap & trade systems)  Increasing energy costs • Regulatory risks  State and regional policies • Competitive & reputational risks  Pressure from stakeholders (investors, insurers, customers, employees, media, advocacy groups)  Image  TechnologyDelivering sustainable solutions in a more competitive world
  • 6. Some examples of water risksDelivering sustainable solutions in a more competitive world
  • 7. Drivers for sustainability… Opportunities  Direct sales profits (changing consumer behaviour, new markets,…)  Reducing costs (energy, carbon emission permits)  Avoiding penalties from non-compliance  Improved reputation (greener image)  Attracting stakeholders (investors, customers,…)  Ahead of the game – prepared for future regulationsDelivering sustainable solutions in a more competitive world
  • 8. Tracking Sustainability • Tracks financial performance of the leading sustainability-driven companies worldwide • Measures the performance of companies that meet globally recognised CR standards and facilitates investment • Integrating sustainability into capital markets for the health of the planet and its people • Carbon Efficient Index addresses the investment community’s increasing concern with environmental issues • Identifies the best managed companies that will succeed on a sustainable basisDelivering sustainable solutions in a more competitive world
  • 9. Also governments care…. • Food and drink (EU-25) cause 20 to 30% of environmental impact of total (private) consumption Environmental impacts of products (consumption) Environmental impacts of products (consumption) Housing 29% 32% Food and beverage consumption Transport 15% Other 24%Delivering sustainable solutions in a more competitive world
  • 10. How to measure (and reduce) the environmental impact?Delivering sustainable solutions in a more competitive world
  • 11. Where to start: what to assess? Corporate Assessments The entire value chain across Primarily for investors, stakeholders, all product categories and NGOs and media company activities Product Assessments Used at corporate level A single product across its life cycle Primarily for customers and consumers Used to manage sustainability Used for R&D, marketing and customer- performance across the facing initiatives whole company, engage partners and publically Used to differentiate/ label the product, manage report performance for that given product, and assist supply chain engagementDelivering sustainable solutions in a more competitive world
  • 12. Life Cycle Assessment (LCA) • Assessment of the environmental effects a product or service has during its lifetime • Some footprints look at only one impact such as carbon or water From Cradle To Gate To Shelf To Fork To Grave Raw Storage Retail Storage & Transport Production Distribution & Retail Transport Consumption Disposal MaterialsDelivering sustainable solutions in a more competitive world
  • 13. Example Carbon Footprint – 500g Pack of Mince 0.2% 10% End of life • Total footprint = 7.3kg CO2 equivalents Retail and use 22% 68% Processing and packaging Production and transport of raw materialsDelivering sustainable solutions in a more competitive world
  • 14. Organic Tomatoes (Locally consumed, Australia) Packaging ConsumptionDelivering sustainable solutions in a more competitive world
  • 15. Example Carbon Footprint of Cut Flowers Estimate of impacts of transport to consumer taken from Defra Shopping Trolley study – 0.06 kg CO2 eq /kg life End of 4% Current disposal statistics 0.7% (plastics) taken from Defra 72% Retail 98.7% 0.6% Transport 24% Production and packaging • Holland • Kenya Total Carbon footprint of Cut Flowers Total footprint = footprint = 20 18,9 3.7kg CO2 CO2 eq 18.9kg CO2 10 equivalents equivalents 3,7 0 Holland KenyaDelivering sustainable solutions in a more competitive world
  • 16. Example of Carbon Footprint - Chicken • Tesco Whole Chicken  4.3 kg CO2e per kg 6.9 kg CO2e per product • Tesco Free Range Whole Chicken  4.9 kg CO2e per kg 12.4 kg CO2e per product • Tesco Organic Whole Chicken  5.4 kg CO2e per kg 13.6 kg CO2e per product Free Range and, particularly, Organic products have a significantly higher carbon footprint per kg of productDelivering sustainable solutions in a more competitive world
  • 17. Example of Water Footprint - Chicken • Tesco Whole Chicken  24 litres per kg 39 litres per product • Tesco Free Range Whole Chicken  25 litres per kg 62 litres per product  (+4% per kg for water footprint; +15% for carbon footprint) • Tesco Organic Whole Chicken  25 litres per kg 64 litres per product  (+6% per kg for water footprint; +26% for carbon footprint)Delivering sustainable solutions in a more competitive world
  • 18. LCA or footprint is used • Clear method to analyse the environmental related impacts products throughout their life cycle • “Needs to measure it to manage it” • Help to identify the most important phases of the life cycle for improvement/ efficiencies • Supports sustainable product design • To disclose and report (credible) information • Inform policies • Validation of claimsDelivering sustainable solutions in a more competitive world
  • 19. Challenges… • Emerging and available accounting methods (ISO, PAS 2050, WRI/GHG Protocol • Understanding your processes and boundaries is not always easy • Data collection and availability • Resource issues • None quantifiable aspects of sustainabilityDelivering sustainable solutions in a more competitive world
  • 20. Case studies Integration of environmental sustainability into decision-making in agro-food industryDelivering sustainable solutions in a more competitive world
  • 21. Case Study: Cadbury water footprint Description • Develop a pilot tool and method to calculate a cradle to gate footprint for Endearmints (product water footprint). • Part of a programme to further their corporate responsibility. Results • Over 70% of the footprint is from sugar and glucose. Next steps • 13% is from the manufacturing (direct Explore how current water conservation control). methods influence the footprint. • Old site with many areas where efficiencies can be made. Further ecosystems work related to sugar.Delivering sustainable solutions in a more competitive world
  • 22. Case study: Tesco Corporate and Supply Chain Water Footprint Description Completed a direct and indirect water footprint of the entire supply chain. Results Direct water footprint was 23 billion litres, nearly all of which came from metered consumption in stores. This represents just 1% of the total water footprint associated with the products Tesco sell. Next steps Some 850 billion litres comes from their Tesco is using these figures to develop a upstream supply chain, and 1,000 billion water strategy over the next year. litres used by customers consuming their products.Delivering sustainable solutions in a more competitive world
  • 23. Case Study: Carbon footprint of agriculture Description • Government commissioned study to calculate carbon footprint of the Flemish agricultural sector (beef, pork, milk) Results • Under progress Next steps Gain insight in the production process of beef, pork, milk. Explore what the hotspots are.Delivering sustainable solutions in a more competitive world
  • 24. How to communicate the environmental impact of a product?Delivering sustainable solutions in a more competitive world
  • 25. The First Three Carbon Labels (UK, 2006) Who? What? Where? Cheese & On pack Onion Crisps Botanics & Ingredients Point-of-sale Shampoo Mango & Passion- Website fruit SmoothieDelivering sustainable solutions in a more competitive world
  • 26. Today – 5,000 products, 90 brands Carbon Trust labels on products in the US, Canada, Ireland, UK, Denmark, Germany, France, Norway, Sweden, Belgium, The Netherlands, Austria, Switzerland, Spain, Italy, Russia and New Zealand.Delivering sustainable solutions in a more competitive world
  • 27. Worldwide Environmental Labels /Certifications arise • Carbon Trust/PAS 2050 (UK) • Grenelle II law - BP X30-323 (France) • KRAV - certification for food (Sweden) • Migros Labelling Scheme/ Climatop (Switzerland) • CertifiedCarbonFree label (US) • Carbon Concious label (US) • SGS carbon neutral label (China) • Carbon Counted label (Canada) • Raisio label (Finland) • Carbon Trust Australia • ….Delivering sustainable solutions in a more competitive world
  • 28. Other Disclosure and Reporting tools and efforts • Carbon Disclosure Project (supply chain, water…)  Information disclosure to investors, public sector.. • Global Reporting Initiative (GRI)  Sustainability and Integrated reportingDelivering sustainable solutions in a more competitive world
  • 29. Harmonisation initiatives in the food and drink sector:  European Commission/ Joint Research Centre: Environmental Footprinting project (product/organisation) methodologies and guidance  European Food Sustainable Consumption and Production (SCP) Round Table  European Retail Roundtable for Sustainability  International Dairy Federation – Carbon Footprint guidanceDelivering sustainable solutions in a more competitive world
  • 30. Sustainability “… being a bit like world peace – a very large concept and even if we never quite get there; its the best path to take.” » Bob Carsson, Vion Food UKDelivering sustainable solutions in a more competitive world

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