Engaging employees and other lessons in sustainability

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Presentation by Jamie Mitchell, managing director, Innocent Drinks - at the CBI Climate Change Summit, Tuesday 2 December 2008

Presentation by Jamie Mitchell, managing director, Innocent Drinks - at the CBI Climate Change Summit, Tuesday 2 December 2008

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  • 1. Engaging employees, and other lessons in sustainability November 2008
  • 2. agenda o An innocent story o What is sustainability? o Three lessons
  • 3. a tale of two ideas innocent started as a three friends with one simple aim Make life a little bit better and a little bit easier
  • 4. a tale of two ideas This revolutionary thinking led us to their first idea The amazing electric bath
  • 5. a tale of two ideas Fortunately their second idea had more merits The fruit smoothie
  • 6. from small acorns We started small
  • 7. our products Today we have a family of smoothies for all occasions
  • 8. our new products And in the past two months, 2 new ranges have been added Orange Juice Veg Pots
  • 9. europe From a UK base we are now sold in a few other places too 9
  • 10. growth All of which has delivered some amazing growth over the years 120 114 Revenue 100 £ Millions 80 75 60 38 40 20 17 11 4 6 0.2 1.4 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: innocent Ltd management accounts, 2006 budget
  • 11. agenda o An innocent story o What is sustainability? o Three lessons
  • 12. Why do we want to be sustainable?
  • 13. core philosophy An over-riding principle by which we make all decisions Create a business we can be proud of a.k.a The Nursing Home Test
  • 14. company values This drives our 5 values Create a business we can be proud of Be Be Be Be natural entrepreneurial Be commercial generous responsible • Keep it human, • Chase opportunities • Create growth and • With time where put people first and be responsive profit for us and needed • Leave things a little our customers • Make 100% • Be creative and better than we find • With praise natural, challenge the status them • Be tough, and be wherever possible delicious, quo fair • Move towards only • With wealth with healthy stuff, • Prove it can be done zero or positive • Think clearly, act those that deserve 100% of the time impacts decisively and it • Act and talk keep the main naturally, thing, the main treating others thing as you would want to be treated.
  • 15. What is sustainability?
  • 16. We think sustainability is about… Leaving things a little bit better than we find them
  • 17. business value from sustainability Continuous innovation Planning for the future Long term Stay competitive, realise major The sustainability of our planet, and product or cost improvements communities ensures the through clean technology. sustainability of our business Cost and risk reduction Brand reputation and legitimacy Short term Lower costs and risks by reducing Gain trust and loyalty of customers, resource use. suppliers and employees Internal External Source: S. Hart 1997, Beyond Greening: Strategies for a sustainable world
  • 18. being sustainable There is no perfect solution – it’s a balancing act Planet Viable natural environment Sustainable development People Profit Nurturing Sufficient community Economy
  • 19. sustainability strategy Our sustainability strategy has 5 key elements Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 20. sustainability strategy Firstly we need to only make natural healthy products Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 21. product has to be inherently sustainable Natural drinks that tastes good and do you good 100% natural fruit Never, ever from concentrate 2 portions per bottle Naturally low GI
  • 22. sustainability strategy Buying ethical ingredients Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 23. ethical ingredients We want to buy our fruit from farms that look after both their workers and the environment
  • 24. ethical ingredients We really like the Rainforest Alliance 1. Covers both social and environmental issues 2. Encourages farms to build their skills and capabilities 3. Works with all types and sizes of farms 4. Undertaken by local NGOs All our bananas are from Rainforest Alliance certified farms. We also buy some RA certified pineapple and passion fruits, and have given the RA 3 years of funding to increase the amount and variety of certified fruit.
  • 25. innocent standards For other fruits, we have now developed our own comprehensive minimum standards
  • 26. sustainability strategy After the fruit, its about the packaging Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 27. Sustainable packaging We look for 4 main sustainability criteria for our packaging formats: 1. To only use recycled or renewable materials 2. To use as little material as possible 3. To use packaging formats with a low carbon footprint 4. To use packaging formats for which there is a widely available sustainable waste management option
  • 28. reduce virgin finite materials Last year we achieved our long-term ambition of a 100% rPET bottle – a global first 100% Percent Recycled 80% Material 60% 40% 20% 0% 2001 2003 2005 2007
  • 29. sustainability strategy We want to be as efficient as possible Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 30. the basics We started with the things that just made common sense
  • 31. suppliers going green We have helped one manufacturer halve their use of land fill … 40 Landfill 35 Waste (Tonnes) 30 54% 25 20 15 10 5 0 Mar April May June July
  • 32. suppliers going green … and move to renewable energy
  • 33. sustainability strategy Lastly, we want to give something back Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 34. The innocent foundation • Our vision To build sustainable futures for the world’s poorest people Support people dependent on subsistence agriculture to build sustainable futures
  • 35. The projects In 2007 we supported 18 projects around the world, helping 58,000 people on the path a more sustainable life
  • 36. In summary Good Business is Good Business • Lower costs • Loyal customers • Motivated team
  • 37. agenda o An innocent story o What is sustainability? o Three lessons
  • 38. Lesson 1: Engage every employee by putting sustainability at the heart of your business
  • 39. At the heart…. Make sustainability fundamental to your business, not an add on 39
  • 40. innocent purpose For innocent, sustainability is a key part of our business purpose Make food good Delicious Healthy Sustainable
  • 41. shared accountability And, rather than a separate function, innocent has put sustainability at the heart of it’s business, with accountability shared across many teams Sponsor Technical Packaging Production Rich Lead Jess
  • 42. 500 hands are better than two Everyone is trained, and every team has a champion Teams who have completed Appointed sustainability champion: adv. sustainability training: • All international teams • Products • Technical, Production, Procurement • Procurement • PR, Marketing, Comms • This Water • Commercial, Consumers • Scandi • People, IT, Finance, Environment • France • Ireland • Germany
  • 43. Lesson 2: Start measuring
  • 44. One step at a time
  • 45. carbon footprint Until you measure it, you can’t identify the easy wins. Our 2006 carbon audit lead us to set three objectives for 2007 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 46. 1. Reduced fertiliser use Fertiliser use is a major contributor – our minimum standards and buying certified fruit reduces its use 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 47. 2. Move to 100% recycled plastic Packaging was the biggest issue for bottles – rPET reduced the total by 18% 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 48. 3. reduce our suppliers’ footprints It was also clear we needed to help our suppliers realise savings 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 49. Lesson 3: Engage your consumer
  • 50. Our website We keep our consumers informed of our sustainability work on our website, with frequent blog posts too Lesson 3: Engage your consumer
  • 51. smoothie footprints We worked with the carbon trust to launch carbon labelling, although we haven’t yet put these on our bottles as consumer understanding of the concept is too low
  • 52. consumer context Instead, we have tried to make the information meaningful with our idea for a daily allowance of CO2 per person
  • 53. summary We are at the beginning of a journey. We are no way near good enough. But we know where to go, and how to get there. Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients