Our approach to sustainable ingredientsJanuary 2012
QuestionWhat are the key hurdles facing us? What might be some solutions?
an innocent storythe challengesustainable sourcing
Our philosophyA simple philosophy underpins the business Create a business we can be proud of a.k.a The Nursing Home Test
Company valuesThis core philosophy drives our 5 company values Create a business we can be proud of Be Be Be Be Be natural entrepreneurial responsible commercial generous• Keep it human, • Chase opportunities • Leave things a • Create growth and • With time where put people first and be responsive little better than profit for us and needed we find them our customers• Make 100% • Be creative and • With praise natural, challenge the status • Reduce impacts • Be tough, and be wherever possible delicious, quo fair • With wealth with healthy stuff, • Prove it can be done • Think clearly, act those that deserve 100% of the time decisively and it• Act and talk keep the main naturally, thing, the main treating others thing as you would want to be treated.
Our approach•We think sustainability is about… •Leaving things a little bit better than we find them•Balancing the needs of Planet sustainable business Profit People•And focussing on your main impact areas (from farm to fridge and beyond) Nutrition Ingredients Production Packaging Legacy what we make what we use how we make it how we deliver it what we contribute
StrategySustainable Sustainable Sustainable Sustainable Sustainable Nutrition Ingredients Production Packaging Legacywhat we make what we use how we make it how we deliver it what we contribute
an innocent storythe challengesustainable sourcing
BalanceIt’s not always straightforward, it’s about finding the right balance Planet Viable natural environment Sustainable development People Profit Nurturing Sufficient community Economy
FocusWe have broken down the requirements of the standards into three categories Mandatory • The must haves Required • The want to see soons We also have a different standard for ‘small’ and ‘large’ farms Desirable • The lets work towards
Growing Need identified We use risk assessment as a Risk assessment phase 0 High level risk AND opportunity scoping practical tool No screamers OR we identify an opportunity Risk assessment phase 1 Risk assessment docs and innocent visit High – medium Low risk risk Risk assessment phase 2 processor response to specific questions OR self-assess against critical elements Corrective action plan if required High- med Low risk risk Innocent or 3rd party audit assess sample farms Corrective action plan Medium - High risk low riskAlternative source Buy certified Investigate or supplier ingredients project need
BaselineOur assessments are built into a conformance measure…..
What then?…and they also feed into our ingredient strategies Where are we currently • What’s the conformance for the supply base • Where are the macro Where do we need to focus hotspots • What trends are correlated with the hotspots What does the forward journey look like • What should our ingredient strategy look like
Ethical ingredients We want to buy our fruit from farms that look after both their workers and the environmentWe work to understand the issues for each country/fruit and then choose an approach thatwill best meet their needs and ours.
Ethical ingredientsRainforest Alliance is an example of what works very well for some of our fruits 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 •All our bananas are from Rainforest Alliance certified farms. •We are steadily increasing our volumes of Rainforest Alliance certified pineapple •We are actively looking at expanding to other (tropical) fruits eg.passion fruit
Certified fruitRainforest Alliance drives positive change for pineapple better soil protection maintain biodiversity reduced pesticides, safer working
BackgroundClimate adaptation models show India, the home of mango, is under significant threatErratic monsoons and changes in temperature will change the face of Indian agriculture
BackgroundWe are investing in a project in the Konkan region 1. Area most susceptible to climate change 2. Significant mango cultivation, 1.6M ha 3. Little scope for other crops
Climate adaptationKonkan Agriculture University has developed a Five-Point integrated package of practices - we see potential for using this for climate change adaptation
ObjectiveTo demonstrate a sustainable model for mango production – to safeguard farm income by mitigating risks caused by adverse weather CLIMATIC IMPACT pest & disease fruit quality loading & productivity CHANGES IN LONG-TERM MANGO SUSTAINABILITY CULTIVATION FARM FARM OF MANGO PRACTICES socio-economic PRODUCTION INPUTS impact OUTPUTS RETURN ON INVESTMENT
Socio-economic considerations Farms have been selected to reflect the difference in land size and management Large, single cropping farming system.Size of farm Mango grown as cash crop Smallholders, typically practice mixed farming, with limited access to finance and labour. Subsistence farming, with a few tree [cash] crops
Socio-economic considerationsFarms have been selected to reflect the difference in land tenure and management Owner not active, but has permanent farm manager Owner, permanently based and active on farm Tenant Land ownership, from owner-manager to landlord-tenant
Focus areas Flower regulationCanopy management Fruit drop managementNutrient management Pest/disease management
FindingsTwo of the five points of the programme were covered for the 2011 harvest – with good results The five-point programme witnessed a 50% reduction in chemical loading, without increased presence of pest and disease in the groves Fruit retention was 25% higher than the control Shelf-life of mango was noticeably better, with less incidences of postharvest diseases
6. Use partnership(to punch above your weight)
Water strategy Understand and improve water management in the innocent supply chainMeasure Protect Improve Educate current areas of supply business usage water chain partners and stress processes consumers
Mapping our fruitsWater stress is a measure of water consumption relative to availability of fresh, cleanwater – we built a picture of the relative water stress between our sourcing countries
Strawberry and banana footprintThe project recipe covered 4 of the top 5 fruits purchased by innocent drinks, whilsttouching a number of water stressed regions orange strawberry apple banana red grape white grape lime
Spanish strawberry footprintSpanish strawberry had the highest water footprint
Competition …and there is competition for water in the regionstrawberriesprotected areas
Donana National Parkwetlands dunes and beaches forests 875 plant species and 226 bird species Annual stop over point for 6 million migratory birds Wintering spot for 500 000 water fowlOne of the last refuges for Spanish Imperial Eagle and the Iberian Lynx
Where to startIt’s about focussing where you can engage and influence
A choiceWe faced 2 options or Change our Face the sourcing challenge