Lessons in Sustainability · annual sustainability reporting – Distribution Center, Repackers,...

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

Lessons in Sustainability All Things Organic September 18, 2014

presented by Katherine DiMatteo

Katherine@sustainablefoodtrade.org

Build the capacity of the organic food trade to transition to

sustainable business models.

Mission

How does your company define sustainability?

Green vs. Sustainability

• 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 · +"'

ent • • • • • , ,

Baseline

....·' 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?

Formalizing your Sustainability Program

Process Mapping

Data Collection

Writing your sustainability

report

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

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!

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

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)

Source: Dan Rossman Rossman@MSU.edu

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

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)

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?

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

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

Lack of consistency

SAI Platform Findings 2009

SCS Rainforest Alliance

Fairtrade

GLOBALG.A.P.

EU Organic USDA Organic

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

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

Scope of LEO-4000

Farm Crops Food Other crops (fiber, etc.)

Farm Animals

Beyond the Farm Gate

Status Draft released for public

comment December 6, 2013

Committee is now reviewing comments

Basic Structure

Self assessment (for internal use) or third party assessment (for market claims)

Supplemental Resource Guide

Bronze

Silver

Platinum

4 tiers of performance:

To provide an “on-ramp” for entry level

To promote continuous improvement

required and optional indicators

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.

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.

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

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

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

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

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

Lessons in Sustainability · annual sustainability reporting – Distribution Center, Repackers,...

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