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Olivia Knight Adams Coca Cola Profiting from Sustainability Conference York Dec 2014
1. Coca-Cola and Sustainable Agriculture
Presented by: Olivia Knight-Adams โ NWEN Environment Manager
10 December 2014
2. 2
Content
1. Sustainability at Coca-Cola
2. Why sustainable agriculture matters
3. Our approach to sustainable agriculture
4. What sustainable agriculture means for our
suppliers?
5. Sustainable agriculture in practice
7. 7
Agriculture is critically linked to energy and water and all
three are at the heart of the sustainability challenge
greater supply volatility
more unpredictable higher production costs yields
10. Why sustainable agriculture matters to Coca-Cola?
Brand risk tied to
sourcing
Supply disruptions
ยฃ increases & ยฃ volatility
Changing consumer
preferences
Social media
Power of civil society
Globalization
Declining trust in
corporations
Population growth
Emerging middle class
Climate volatility
Water stress
Soil degradation
2020 Growth
Vision
More
agricultural
ingredients
=
Changing operating
conditions
+
Agricultural
supply constraints
+
Global trends magnifying
market forces
12. We are committed to promoting sustainable sourcing and
supporting sustainable sourcing practices across industry
โข Incorporating sustainable sourcing criteria into long-term ingredient sourcing
plans
โข Working with partners and suppliers to improve livelihoods through efforts
to increase crop yields and reduce production costs
12
โข Helping farmers to improve agricultural practices and reduce
environmental impacts such as minimizing use of pesticides & optimizing
fertilizer applications.
โข Helping build industry-wide collaboration to gain alignment and effect
change in the agricultural sector
14. Sustainable Agriculture Guiding Principles
14
LAY THE FOUNDATION FOR โSUSTAINABLY SOURCEDโ EXPECTATIONS
Environment
7. Water Management
8. Energy Management and Climate
Protection
9. Conservation of Natural Habitats
and Ecosystems
10. Soil Management
11. Crop Protection
14
Human and Workplace Rights
1. Freedom of Association and
Collective Bargaining
2. Prohibit Child, Forced or Abuse of
Labor
3. Eliminate Discrimination
4. Work Hours and Wages
5. Safe and Healthy Workplace
6. Community and Traditional Rights
Farm Management Systems
12. Harvest & Postharvest Handling
13. Reproductive Material Identity,
Selection & Handling
14. Management Systems, Record
Keeping and Transparency
15. Business Integrity
15. 15
Building a comprehensive set of criteria
Sustainable Agriculture Guiding Principles
Environment (shortened)
Principle 7. Water Management
Comply with applicable laws and regulations
The annual volume of water withdrawn is recorded and withdrawal
amounts do not exceed an authorized or permitted amount
Sources of water (surface and groundwater) utilized are inventoried.
Overall demands on local water source(s) are understood. If the water
source is under stress, a dialogue is initiated with other stakeholders to
develop a solution.
Total water usage is reduced by implementing water saving practices.
Where irrigation is used, the most efficient system as is technically
available and financially affordable is implemented
Appropriate management and treatment systems for all wastewater
discharges exist and are maintained.
Land management practices are implemented to minimize impacts of
diffuse pollution (e.g., runoff) on surface and groundwater bodies.
Irrigation water quality is monitored and managed to minimize negative
impacts on crops and surrounding ecosystems.
17. 17
Route to SAGP compliance
Beet
Clear expectations
All Tier 1 direct suppliers must have full line-of-sight to farm
locations-which must meet SAGP minimum expectations
Flexible approach
Various pathways to compliance according to commodity
whether supplier is already working against existing standards
(which we have benchmarked SAGP against)
Industry alignment
Where existing standards do not exist (e.g. beet) we are
supporting development of industry wide initiatives such as
SAI Platform FSA to demonstrate compliance with SAGP
18. 18
What is SAI Platform?
โข Founded in 2002 by Unilever, DANONE Nestle, as non-profit organization to
exchange sustainable agriculture knowledge across range of food chain stakeholders
โข SAI Platform now a global food and drink industry initiative with 60 active
members supporting the development of sustainable farming practices at the field
level.
โข Retailers are being invited to join SAI further changing the dynamics of the platform
โข Aims to make it easier more flexible for farmers worldwide to adopt sustainable
farming practices
โข Developed series of common principles practices which evolved into Farmer
Sustainability Assessment (FSA)
19. Why SAI Platform FSA?
Provides harmonised approach to sustainable sourcing across FD industry
Meets needs of the industry
A simple, yet comprehensive tool with
implementation verification
guidelines to assess farm sustainability
Applicable to all crops (including arable,
fruit and vegetables) and all farm sizes
Addresses environmental social
economic criteria promotes
continuous improvement
Offers an easy scoring system resulting
in a clear overview of the farmโs
sustainability
Unique advantages for farmers
Increases supply chain consistency
Excel tool backed-up by comprehensive
IT solution reduces duplications and
time requirement by farmers,
www.standardsmap.org
Responds to needs of many customers in
value chain (Unilever, Heineken,
Mondelez, Mars already support joint
action on sugar beet) reducing audit
needs costs
Reduces work for the farmer as it pre-filters
legislation and cross-compliance
requirements (in EU) on the ITC tool
Added value from SAI training, insights
tools for continuous improvement
Our preferred route to demonstrate compliance with SAGP for beet fruit
21. Globally: We support over 40 sustainable sourcing projects in 25 countries aimed
at improving crop yields livelihoods of farmers, while reducing costs
environmental impact
Europe: We actively support Innocentโs Doรฑana Strawberry Sustainable Water
Management project in Spain Skylark Foundation in Netherlands (friends in
rotationโ approach)
England: Partnership with WWF since 2012 promoting water sensitive farming,
supply chain sustainability and good water stewardship. Focussed on River Nar
in Norfolk, source of approximately 80 % of beet used in our drinks made in GB
Collaborating and sharing knowledge with farmers, local communities and other
strategic partners has been key to successful implementation of sustainable
agricultural practices
22. Pressures on the River Nar
โข Nar failed to reach โGood Statusโ
under EU Water Framework
Directive
โข Soil erosion compaction
resulting in in-river sedimentation
โข Phosphate and nitrate loss from
soils resulting in in-river
eutrophication
โข 21 high sediment ingress points
identified
โข Need identified to reduce farm
runoff (which carries nutrients,
pesticides and sediments) from
entering the River Nar
23. Solutions
Built partnership with Norfolk Rivers
Trust โ trusted local knowledge
Appointed Farm Advisor to provide
farmer support โ hotspots identified
bespoke farmer management plans
created
Key interventions included installing:
- baffles
- swales
- silt traps
- reed beds
Achievements Benefits
Preventing agricultural pollution running
into river, restoring 1.8km of river
habitat for trout other species
Reducing need for fertilisers and
improving soil quality for farmers
Worked with communities government
in river catchment planning to help
rivers meet good ecological status
Promoted water stewardship through
stakeholder engagement
