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
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Lessons in Sustainability · annual sustainability reporting – Distribution Center, Repackers, and Tier 1 – Energy, Waste, Water Sustainable Practices Survey – Energy and GHGs,
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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
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Lessons in Sustainability All Things Organic September 18, 2014
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
13%
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
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Our path towards sustainability Farm To Fork
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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?
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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
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How do we make a better product? Start with better ingredients
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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
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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
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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
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)
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)
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
Comprehensive Issues Addressed Environmental Production System Soil Resources Water Resources Air Resources Climate Change Biotic Resources Energy Resources and Use Waste Handling
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
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