Sustainability Review
Transcription
Sustainability Review
Sustainability Review PEOPLE, PLANTS AND PLANET Financial Year 2015 Sustainability at Pukka Our vision is for Pukka to be universally recognised as a pioneer in supporting the healthy living of individuals, society and the environment. We want to have a demonstrable net-positive impact on people, plants and the planet. 10 37 colourful cups of organic tea this year 753 160 different ethically sourced organic herbs, the same weight as 188 in FY14 elephants! 100% certified organic herbs, protecting people, plants and planet 0 biodegradable teabags, staple free for animal friendly compost Zero waste to landfill, helping to keep our operational footprint light Our products are never tested on animals 1 Certified % Carbon Neutral £ 200,000 WWF donation to protect tigers, rhinos and elephants in the Eastern Himalayas 46 Organic supplements tonnes of 100% Our highlights this year 13 Our targets 0 2 To be Carbon Neutral throughout our supply chain - from crop to cup - by 2045 To pledge 1% of our turnover towards positive environmental change Puk.ka/pŭk’ e Adjective: excellent, proper or genuine ORIGIN from Hindi pakkā: authentic, real, delicious. Contents A message from Sebastian and Tim 4 Introduction 6 Our values 6 Achieving our mission 7 Product excellence 8 Climate change 12 Resource conservation 16 Sustainable communities 20 Ethical practices 24 Progress towards a Pukka Planet 28 Appendix 1: Challenge updates from last year’s report 30 Appendix 2 Sustainability Policy 31 Appendix 3 Climate change Policy 32 Appendix 4 Sourcing Policy 33 Cover photo: the bibhitaki tree and the Great Pied Hornbill As a pioneering partner of FairWild, a scheme which provides a premium price for sustainably collected wild plants, Pukka is helping to protect the bibhitaki tree in the Western Ghats, the fragile home of the Great Pied Hornbill. A message from Sebastian and Tim It’s been another meaningful year, half exuberant and half sobering. With the health of our society and environment creaking under the strain of modern life it’s really brought Pukka’s purpose into our minds-eye. Our intention of bringing the benefits of herbal health as well as driving positive environmental change through organic farming and carbon neutrality remain steadfast. We believe our current medical paradigm is flawed with antibiotic resistance and chronic disease reaching epidemic proportions1. UK Government endorsed environmental policies are failing to meet the carbon and temperature targets set to help halt the current crisis2. The failure of the structure of modern medicine is reflected in the admission by the US Department of Health and Human Services and the European Commission that pharmaceutical drugs are one of the top five leading causes of death today3 . We feel the impact of these problems everyday at Pukka. This double-pronged catastrophe is seeing increasing numbers of people seek natural solutions for their health. This heartens us in our vision for a world where natural health plays a more valued role in society. It’s time for us to take natural health seriously as attested to by its safety4, sustainability5 and efficacy6. The benefits of organic farming are finding solid scientific backing too, with organic plants showing significantly higher levels of protective antioxidant compounds7. Indeed, there are some encouraging signs that we are making progress 1http://www.who.int/drugresistance/documents/surveillancereport/en/ 2https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/487751/ ggc-annual-report-2014-2015.pdf 3 Strengthening pharmacovigilance to reduce adverse effects of medicines, European Commission MEMO/08/782; 10/12/2008; 2008 and http://ethics.harvard.edu/blog/newprescription-drugs-major-health-risk-few-offsetting-advantages 4http://anhinternational.org/2012/07/11/anh-exclusive-natural-health-products-ultra-safeand-drugs-as-dangerous-as-war/ 5http://anhinternational.org/wp-content/uploads/old/files/100617-SustainableHealthcare_ White-Paper.pdf 6http://ehtpa.eu/pdf/Scoping%20the%20Evidence%20Base%20for%20Herbal%20 Medicines%20FINAL%20.pdf 7 Higher antioxidant and lower cadmium concentrations and lower incidence of pesticide residues in organically grown crops: a systematic literature review and meta-analyses, Baranski et al, Leifert Br J Nut 0514 4 but the change needs to be quicker. The natural health and organic sectors continue to see significant growth around the world; the US organic sector is predicted to grow over 18% in the five years between 2013-188. The herbal sector grew at 6.8% in 2014 too9. Sadly, in Britain, we have become the laggards of positive environmental change with total organic food consumption sitting at a measly 1.4% when compared to Denmark’s 8% and America’s 4.3%10. The failure of current environmental and health policies puts the responsibility on us as individuals, communities and businesses to lead this change. With this imperative laid out before us we recognise the social, environmental and commercial challenges as well as opportunities we face. At a point in Pukka’s history where we have embedded sustainability at the heart of our business, we are experiencing incredible levels of customer engagement and market growth. We are in a very privileged position. We recognise that we can engage with millions of people to help inspire positive change through the power of plants. We can also engage with our farming partners to initiate change to help protect the future11. We are experiencing increasing unpredictability in our weather patterns that is posing a threat to the predictability of agricultural supply. As one grower said to us on a recent farm visit “It’s too much rain at the wrong time and too little at the right time.” 8http://www.foodnavigator-usa.com/Markets/US-organic-food-market-to-grow-14from-2013-18 9http://cms.herbalgram.org/press/2015/HerbalDietarySupplementSalesinUSRisein2014.html 10Soil Association Market Report 2015: see http://www.soilassociation.org/news/newsstory/ articleid/7805/organic-market-shows-improved-growth-amidst-tumbling-food-prices 11 http://climateuk.net/sites/default/files/Supply%20Chains.pdf Our mission that we set in 2001, today and into the future, will reflect Pukka’s vision: “Through the incredible power of plants we will inspire people to lead a more conscious life. We will strive every day to help create a Pukka Planet benefiting people, plants and planet.” To support this mission we developed our sustainability vision this year: “Pukka is universally recognised as a pioneer in supporting healthy living of individuals, society and the environment. We have a demonstrable net-positive impact on people, plants and planet.” Our inspiration starts with our herbal teas and wellbeing supplements, which are created to deliver excellence in terms of taste as well as health. We are committed to operating a supply chain which offers fair pricing, community development and environmental protection. For this reason all of our tea and wellbeing supplements are certified organic and this year we have set a target that all of our teas will be Fair certified by end Financal Year (FY) 2016 (August). In FY2015, we were the fastest growing fruit and herbal tea brand in the UK again, and our turnover increased by 32%. All of our new teas were fair certified which meant that, together with our business growth, the volume of Fairtrade and FairWild ingredients in our teas increased by 165%. With over 90% of herbal species in the world being harvested from the wild and with 20% of these considered to be threatened it is imperative that any herbs we harvest from the wild are sustainably sourced. The FairWild certification, established by WWF and TRAFFIC and partners, gives this assurance. In 2015 we were honoured to win a prestigious 2degrees Award for our open reporting, reflecting our pioneering work with the Responsible 100 (www.responsible100.com/), an external body that identifies and supports transparency in business by requiring companies to report on key responsibility issues which are then open to public scrutiny. Alongside our phenomenal growth, we remain totally committed to evolving responsibly as a business. This year we achieved our goal of becoming a carbon neutral business two years ahead of target, and will be working with our partners to inspire them to act also, committing to a carbon neutral supply chain by 2045. We are not sure how we will achieve this yet, but we know that our idealistic enthusiasm can be infectious and we are fortunate to have some very talented and committed people in our supply chain who can help us get there. In the next few years, we will improve our management information to enable us to assess the materiality of our impacts and set additional sustainability targets. We will also work more closely with our suppliers to enable them to support our vision and also learn from their expertise. Our future sustainability reports will hold us accountable to these targets and we invite everyone to Pukka Planet (www.pukkaherbs.com) to share their thoughts and ideas so that we can all be a more powerful force for positive change. 5 Introduction Pukka creates delicious organic herbal teas and incredible wellbeing supplements that take consumers on a journey to a healthier, happier life. ‘Pukka’ means authentic and it’s at the heart of everything we do. We only use the finest grade organic herbs sustainably sourced and fairly traded. Our passion to connect people, plants and planet starts with a cup of delicious herbal tea. We would love people all over the world to tune in to the power of plants and discover more about themselves. This sustainability report, our 2nd to date, explains how we do this and reviews our performance for our reporting period, which aligns with our financial year 1 September 2014 to 31 August 2015. It covers the financial control boundary (which is also our operational boundary as Pukka owns 100% of its operations) of Pukka Herbs Ltd which includes Pukka Inc. in the US, in line with International Financial Reporting Standards and the Climate Change Reporting framework. Our sustainability policy (shown in Appendix 1) sets out the principles that guide our decision-making in respect to our social, environmental and ethical performance. From this, we developed a sustainability programme which has five key themes through which we aim to make the biggest difference possible: product excellence, climate change, resource conservation, sustainable communities and ethical practices. In the following chapters, we highlight our approach, our progress and discuss our challenges over the last year. We also introduce some sustainability targets and priority areas for next year to help guide our progress. The information contained in this report is publically available with the aim that we can all work together to create a world where people, plants and the planet thrive together. 6 We also report throughout the year on Responsible 10012 an external body that identifies and supports transparency in business by requiring companies to report on key responsibility issues which are then open to public scrutiny. You are welcome to keep up to date and to comment on our performance on the Responsible 100 website, or if you have any specific questions about this report, please contact our Sustainability Manager [email protected]. 12 http://responsible100.com/ Pukka’s Wisdom Seeds Acheiving our mission Pukka Herbs Ltd is a privately owned limited company operating in the United Kingdom. Our Founders Tim and Sebastian set up business in 2002 from Tim’s spare bedroom and Sebastian’s kitchen. Our herbal tea and supplements are now sold in over 40 countries in Europe, Asia, Africa, Australia and North America. At 31 August 2015, we had 81 team members (79 full time equivalent) based at our registered office at 8 Hawkfield Business Park, Bristol, BS14 0BY and temporary space at The Pavilions, Bridgwater Road, Bristol, BS13 8AN until 30th June 2015 and then Parkview, Whitchurch Lane, Bristol, City of Bristol BS14 0TJ. Our executive board is responsible for the governance of our sustainability programme supported by the strategic sustainability group which includes our founders, our marketing and operations directors, the head of business strategy and our sustainability manager. Everyone at Pukka contributes to its delivery and we support this by training at whole business events and briefings and through our induction programme for new team members. We monitor our performance using key performance indicators following, where appropriate, Defra Environmental Reporting Guidelines June 201313. This report also contains Standard Disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G4). 13https://www.gov.uk/government/publications/environmental-reportingguidelines-including-mandatory-greenhouse-gas-emissions-reportingguidance 7 Product excellence Our herbal teas and wellbeing supplements are not just good for you, they’re also good for people and the planet. At Pukka, we design our products to deliver excellence in terms of environmental and social benefits as well as in quality by using medicinal grade herbs. How do we do this? • All of our products are certified organic by the Soil Association to UK/EU standards and compliant with the US National Organic Programme. Our commitment to organic cultivation is a central part of Pukka’s DNA. We even use certified organic cotton string on our teabags. For more information: [link to http://www.pukkaherbs.com/pukka-planet/ stories/plants/organic-cotton/] • We ensure that World Health Organisation guidelines on good agricultural and collection practice are followed through supplier audits and rigorous quality control procedures. All of our herbs are fully traceable back to the source. • Our herbs are traded fairly and we use Fairtrade14 and FairWild15 certification where appropriate. Most people are familiar with Fairtrade certification which ensures better wages, decent working conditions and fair terms of trade for farmers and workers. FairWild is a pioneering standard to ensure sustainable collection of wild sourced ingredients, and fair pay for collectors. • We never test on animals in accordance with our animal testing policy as certified by Cruelty Free International. Everything we make is suitable for vegetarians16. • We use FSC (Forest Stewardship Council)17 certified, recyclable materials and vegetable inks for our tea and wellbeing cartons. We use only synthetic (rather than animal) glues. 14http://www.fairtrade.org.uk/ 15http://www.fairwild.org/ 16 Our range is not 100% vegan. Products such as Ghee are produced from cows milk, Golden Preserve and Elderberry Syrup contain honey, our Vitalise contains Bee Pollen and a selection of Pukka teas also contain honey (Lemon, Ginger and Manuka Honey and Chamomile, Vanilla and Manuka Honey). 17http://www.fsc-uk.org/en-uk 8 Achievements for FY15 Sourcing policy Lighter envelopes In 2015 we put all our 14 years of our sustainable sourcing experience into a formal written policy. As true herbal pioneer-geeks we’re excited that this gives us clear guidelines on how and what we buy as we continue to grow rapidly as a business (see Appendix 4). We often get asked why our tea bags are individually packaged. We do it to ensure the best quality and healthiest herbs in every cup. We go to great lengths to source high specification, organic, pharmacopeia grade herbs. The envelope best protects the herbs from heat, light and moisture, which would diminish their depth of flavour and health benefits as they prevent the high levels of essential oils from evaporating. This provides a superior product for our consumers, meaning our sourcing efforts are not wasted. We have found that the material that works best for this is a paper envelope with a polyethylene lamination. The challenge for us is to find envelope materials that are fully recyclable – so that once you’ve made your Pukka cuppa, the envelope can go into the domestic recycling stream. FairWild: Ensuring the long term survival of wild plant species We are really proud to be pioneering the use of the FairWild standard at Pukka. The FairWild initiative is based on similar principles to Fairtrade – the difference is that FairWild is designed specifically for plant ingredients that have been collected from the wild. With 1 in 5 of the world’s plants now listed as threatened and at risk of extinction the need for a new approach to wild plant collection has never been greater. At its core, the FairWild purpose is simple: “To ensure the continued use and long-term survival of wild plant species and populations in their habitats, while respecting the traditions and cultures, and supporting the livelihoods of all stakeholders, in particular collectors and workers.” Find out more: http://www.wearesalt.org/fairwild-and-pukkateas-creating-a-better-planet-and-a-better-brew/ and watch the FairWild video here: http://www. pukkaherbs.com/pukka-planet/stories/people/ Developing 100% certified organic natural flavourings We use organic essential oils to enhance the flavour of some of our tea blends. Our suppliers have now developed an organic version of lecithin (the material that holds the oils) from certified organic sunflower seeds. This means our essential oil flavours are now 100% certified organic. A suitable alternative material is not currently available so we are actively seeking out an ideal long term material. In the meantime, when our envelopes were redesigned for 2015 we took the opportunity to reduce the thickness of the external paper by 25%. For FY15 this saved 62.6 tonnes of paper. This is good news not only from a waste perspective, but also from a climate perspective. By reducing the amount of material used, we’ve reduced the greenhouse gas emissions associated with the manufacture, processing, transportation and disposal of our envelopes. Avoiding the use of 62.6 tonnes of paper, according to Defra’s 2015 carbon factors [ link to http://www.ukconversionfactorscarbonsmart. co.uk/],saves 90 tonnes of carbon being released into the atmosphere . It also saves around 1600 trees18. While we search for a fully recyclable material we offset the carbon emissions from the production and disposal of our envelopes, which this year came to 450 tonnes of carbon dioxide. This is the equivalent of driving 60 times around the world19! 18 1 tonne of uncoated virgin (non-recycled) printing and office paper uses 26 trees. Metric conversion from http://conservatree.org/learn/EnviroIssues/ TreeStats.shtml] 19 450 tonnes of carbon dioxide is the equivalent of driving over 1.5 million miles in an average-sized diesel car. Assuming you could drive in a straight line around the equator which measures 24,901 miles.) 9 Priorities for FY16 Key performance indicators Table 1 shows the percentage of our teas (which account for 83% of FY15 turnover of all our products) that are Fairtrade or FairWild certified. We had 10 Fairtrade certified teas at 31st August 2015, and 13 certified FairWild, an increase of 3% on last year. Product contribution Percentage of range 2014 Percentage of range 2015 Target for 2016 Fair certified teas 59% (20/34) 62% (23/37) 100% Finding the right material for our envelopes that will keep the tea fresh and is recyclable. This is a technical challenge for our suppliers but we are not giving up. We continue to trial alternatives, speak with our suppliers and scour the industry for new solutions. We are always open to new ideas and innovations so please get in contact if you think you can help. The graph below shows the proportion of ingredients for our teas which are FairWild or Fairtrade certified. 180 160 140 120 100 80 60 40 20 0 30% 25% 20% 15% 2013 2014 Fair tonnes 2015 Meeting our target to reach 100% fair certified teas by end 2016. We will do this by increasing the volume of our ingredients that are fair certified to from 22% to 50%. This will mean that every individual tea blend will have at least 20% of all ingredients certified – the threshold for Fair for Life certification. Fair for Life is a certification scheme we will be introducing in 2016, as the scheme certifies fair ingredients from all over the world, not just developing countries We have an exciting year ahead working to create significant positive effects on the lives of thousands of farmers as well as their families. 10% Fair percentage of total ingredients We purchased 754 tonnes of herbs in FY15, 81% of which were cultivated. 70% of our wild collected herbs were FairWild certified. 10 11 Climate change It’s no exaggeration to say that it is a crucial time for this beautiful planet we are lucky enough to call home. Scientists predict that if we do not cut carbon emissions now, it will have catastrophic effects for us all in the future20. Our business is designed to succeed in a low-carbon and climate-resilient economy due to the organic farming methods used by our growers. Many people are well versed in the benefits of organic farming; no system of farming has lower pesticide use, it is more natural, better for our health and the health of farmers, better for wildlife, biodiversity and animal welfare. But you may not know that organic farming is also far more climate friendly than conventional farming. Organic farming methods help take carbon dioxide from the air and lock it in the soil – a process called carbon sequestration. The Soil Association has calculated that if all if all UK farmland was converted to organic farming, at least 3.2 million tonnes of carbon would be taken up by the soil each year - the equivalent of taking nearly 1 million cars off the road21. In our business operations we follow the reduce, replace, offset mantra: 1. Reducing energy use by avoiding using energy in the first place or by becoming more energy efficient. 2. Replacing fossil fuels with renewable options. And 3. Offsetting any remaining carbon emissions. We reduce our energy and fuel use at Pukka. Our biggest operational carbon footprint is from logistics and freight, followed by commuting. We transport by sea or land, except for in exceptional circumstances (eg when items are more popular than we anticipated and go out of stock). We only routinely import one ingredient, our vanilla from Uganda, by air as sea freight is not technically feasible. We use consolidated deliveries and carbon neutral courier services where possible. We promote our bike to work scheme to reduce our commuting footprint, and have a growing group of cyclists at Pukka despite being based in such a hilly city! For many years now we have replaced fossil fuels with renewables. The electricity and gas for Pukka offices and warehouses is supplied by Good Energy 20For further information, see http://www.unep.org/newscentre/Default. aspx?DocumentID=2812&ArticleID=11082&l=en 21http://www.soilassociation.org/innovativefarming/policyresearch/soilcarbon 12 which ensures 100% renewable electricity from British sunshine, wind and rain. After these efforts to reduce our reliance on fossil fuels, at Pukka we commit to annually offset our remaining carbon emissions. This means that we calculate how much carbon we use in our business operations and reduce the same amount of carbon elsewhere. We support Gold Standard certified offsetting projects, which means they actually reduce carbon dioxide emissions (rather than simply certifying reductions that would have happened anyway), and provide benefits to the local population. Achievements for FY15 Carbon neutral two years ahead of target In 2015 we celebrated becoming a certified carbon neutral company. We offset 466 tonnes of carbon dioxide-equivalent22 through an inspiring Gold Standard cookstove project in Uganda23. As well as reducing greenhouse gas emissions from forest degradation, the project also improves the wellbeing of Ugandan communities, and families like Ruth Nakyazzi’s in Kampala. Ruth bought an AES improved cookstove three years ago. Since then, she has observed using about 50% less charcoal than before. Every day she is responsible for preparing meals for six family members. With so many mouths to feed, saving is very important. Initially she would spend 2,000UGX (£0.40) on charcoal a day to make meals using her old metal stove. With her AES improved cookstove, she now only spends around 1,000UGX (£0.20) for cooking fuel. When asked about how she spends her savings, she says, “I use savings to pay for school fees or buy more food.” My forest: conserving forests in The Western Ghats of India My Forest is a project run by the Applied Environmental Research Foundation (AERF). The project aims to protect a global biodiversity hotspot – home to 2% of the world’s biodiversity. In our second year supporting this five year project, AEFR used our donation to pay the salaries of community conservation stewards who are working with private forest owners to protect against deforestation. They also supported the costs of building a temple (as an incentive not to sell trees from the sacred groves to pay for the temple work) and contributed towards developing energy efficient stoves and biomass briquettes for the local community to use instead of chopping down wood from the sacred groves. Offsetting has had a bad reputation in the past, but that is no longer deserved. Using the reduce, replace, offset mantra means you are offsetting within a framework of improving efficiency and reducing carbon use as much as possible, so that offsetting becomes the last step, not the first. And using certified Gold Standard offsets ensure they are top quality and have fantastic social benefits. The Ugandan project not only subsidises the cookstoves being made, but also helps train people and develop the whole value chain (including the manufacturing, distribution, local sales channels and marketing in Uganda) to create a sustainable social enterprise. It is estimated that with each stove, 2.4tCO2 is saved each year. So our offset of over 600tC02 (for our operations and envelopes) helped hundreds of families like Ruth’s. 22Carbon dioxide equivalent expresses the impact of each different greenhouse gas in terms of the amount of CO2 that would create the same amount of warming 23http://www.carbonfootprint.com/uganda_cookstoves_447.html] 13 Priorites for FY16 Key performance indicators Our carbon data covers all scope 1 and scope 2 emissions as well as available data for scope 3 emissions for sources recommended for reporting under the Carbon Neutral Protocol for carbon neutral company status. The scope 3 data not currently available includes outbound courier delivery of packages, third party road transportation and storage of production-related goods and sold products (excluding raw materials freight) (which would require significant data collection effort) and hotels for business travel (which we believe will be immaterial). Table 2 shows our carbon footprint for FY15 and FY14. Scope Gas Refrigeration Company owned vehicle fuel use Total Scope 1 Purchased electricity Total Scope 2 Business air travel Business land travel Commuting Air freight Sea freight Other freight Waste Transmission and distribution losses Water Water treatment Paper Total Scope 3 Total gross emissions Green tariff Total net annual emissions Tonnes of Co2e FY15 (absolute) TC02e per £M turnover (22.4) FY15 TCo2e (absolute) FY14 TC02e per £M turnover (17.08) FY14 8.74 0.00 1.38 10.12 36.11 36.11 70.07 46.82 75.15 53.45 23.58 159.3 0.41 0.39 0.00 0.06 0.45 1.61 1.61 3.13 2.09 3.35 2.39 1.05 7.11 0.02 9.74 0.17 0.00 9.91 35.01 35.01 58.22 33.50 87.46 91.62 27.76 116.31 1.49 0.57 0.01 0.00 0.58 2.05 2.05 3.41 1.96 5.12 5.36 1.63 6.81 0.09 2.91 0.69 0.37 0.63 433.35 479.58 -36.11 443.47 0.13 0.03 0.02 0.03 19.35 21.41 -1.61 19.80 3.04 0.19 0.18 0.01 1.30 420.89 465.81 -29.15 436.66 0.08 24.64 27.27 -1.71 25.57 Now that we are carbon neutral ourselves, we feel OK about asking others to act too. We have set a new climate change target to be carbon neutral in our entire supply chain, from farm to tea cup, by 2045. This is 10 years ahead of the 2055 target set by the IPCC (Intergovernmental Panel on Climate Change). We believe (based on lifecycle assessments completed on conventional tea) that the carbon footprint of our teas is heaviest at the consumer use phase (ie boiling kettles to make tea) followed by the manufacturing phase, followed by the agricultural phase; both of which are managed by supplier and production partners. As we grow, we should have more influence over the choices our suppliers make as well as the resources to encourage energy efficiency and the switch to renewable energy by our consumers. We will begin to plan how we will go about reaching our ambitious target over the next year . It’s a massive undertaking that we can’t achieve alone – so we’ll need to work in partnership with others. As we rapidly grow as a business our absolute carbon footprint is growing too. In the lead up to the United Nations COP21 climate negotiations we have committed to setting science based carbon reduction targets over the next two years24 . 24http://sciencebasedtargets.org/companies-taking-action/ Although out of scope of this report we joined over 118 other companies committed to taking action in the lead up to COP21 http://www.cop21paris.org/ which took place in December 2015. We know that for our business to thrive, a stable climate to grow our herbs is essential, and so climate change poses a significant risk. The continued increase in numbers and severity of unpredictable weather events as a result of climate change will mean ever more difficult growing conditions for farmers. We will continue to focus on looking for ways to build resilience to climate change in our supply chain. Our overall gross footprint of 479.58 tonnes of carbon dioxide has increased by 14 tonnes which is an increase of just 3%. This is the equivalent of driving from Land’s End to John O’Groats and back 28 times or just two first class return flights from London Heathrow to New York. This is an amazing achievement given our rate of growth as a business, which was 32% increase in turnover in FY15. Per £M turnover our carbon footprint has reduced from 27.27 Tonnes to 21.41 Tonnes. The main reason for this cut is a concerted effort to reduce air freight by our Operations team. The flipside of cutting air freight is increased land freight, so the increase here is expected. And as we grow as a business internationally we have seen increased business air travel. This year we included the carbon data from water sewerage treatment. We also switched all the electricity and gas supply that we control to Good Energy in FY15 so we are powered by British sunshine, wind and rain. As this is renewable energy we can deduct it from our total emissions. 14 15 Resource conservation We only have one planet, and we work to keep it Pukka by measuring and reducing our waste. We send zero waste to landfill. We are dependent upon the planet’s capacity to provide resources to help make our products. Things we take for granted like fresh water, sunlight and air to grow our herbs. The planet also provides unseen but essential ‘services’ with its ability to absorb pollution and waste. If we take too many resources or emit excessive pollutants the planet can’t cope. Contaminants to land, air and water can have serious effects on human health and security of food and water supplies and can also result in loss of biodiversity. We continue to implement our sustainable waste management strategy developed last year that follows the waste management hierarchy (reduce, reuse, recycle, recover). From our choice of eco cleaning supplies and 100% recycled office paper we make daily decisions at Pukka to limit our burden on the planet. 16 Achievements for FY15 Turning our waste into craft material for kids Our Pukka tea cartons are too beautiful to go straight in the recycling. As you can imagine, we drink a lot of tea in the Pukka offices! We give our tea cartons a second creative and colourful life by donating them to the Children’s Scrapstore. Here they are reused as creative materials and educational resources to local community groups in Bristol working with children and adults. We sent 3kg of tea boxes and 300kg of cardboard to the Children’s Scrapstore in FY15. Paper cull – every little helps We love trees at Pukka. They are the lungs of the planet and the source of many fine plant medicines. We have focused this year on dramatically cutting our paper use in the office. We took some simple but significant steps. For example we have switched to electronic payslips, we have upgraded our printers to capture and release printing and we contacted all suppliers asking for a shift to email correspondence. These efforts have reduced our paper use by a third from 1550kg in FY14 to 985.47kg FY15. There are still some areas we would like to improve, for example our computer system does not allow us to maintain adequate electronic financial records, so we currently have to print these out. A new system, which will be implemented over the next year and in place by 2017 will help us to further improve. 17 Priorites for FY16 Key performance indicators We purchased 406 reams of paper (down from 595 reams of paper in 2013/4, a reduction of 31%). This is equivalent to 5.1425 reams per person per year. In 2011 an independent environmental audit found that our usage was 14 reams per person per year. Our offices used a total of 686.9 cubic metres of water (557.72m3 in 2013/14). This is equivalent to 8.69 per person. In 2011 an environmental audit found that our usage was 7.7 per person per year Table 3 shows the total waste produced by type of waste and management method. FY15 Material Reuse Recycled Energy recovery Landfill Total (Tonnes) Hazardous 0.00 0.01 0.00 0.00 0.01 Paper and board 1.00 6.70 0.00 0.00 7.7 Other materials 0.83 0.86 0.00 0.00 1.69 Food waste 0.00 2.25 0.66 0.00 2.91 Glass 0.00 1.18 0.00 0.00 1.18 General 0.00 0.00 9.05 0.00 9.05 We will review our waste management policy in FY16. We also plan to work with our suppliers to learn together how to cut waste further. Investigating the amount of embedded water in our products - in other words, the water needed to grow the herbs and make our wellbeing supplements and tea. This is likely to be more than we use in our operations. Total waste produced by management method (tonnes) 1.83 4.28 9.71 1.99 5.37 Reuse Recycled 22.21 Energy Recovery FY14 Landfill 11 FY15 We are excited to be a zero waste to landfill business26. The majority of our waste is recycled, although recycling rates appear to have dropped dramatically. We do not know if this is due to reduced consumption or errors in record keeping by our waste service provider. Our water use has also increased. The data includes some assumptions from our Parkview office which does not have water metering, and the increase in water consumption could be from more cyclists taking showers, but we will investigate further. Paper use has decreased by a third following substantial effort as outlined above. 18 2579 full time equivalent employees in 2015 26Our sanitary waste is still sent to landfi ll as we are tied into a 2 year contract with an organisation that previously recycled this. However this amounts to less than 1 kg per year as per our waste transfer notes. 19 Sustainable communities We are passionate about improving the lives of everyone who comes into contact with us whether they are in the fields growing our incredible organic herbs, or are in our local community of Bristol. We recognise our role as a community member of Bristol, UK and our responsibilities as a job provider, procurer of goods and services and provider of wellbeing products. We also recognise our responsibilities as a global citizen and our impact on the communities of our value chain. Achievements for FY15 Training auditors in India Our first FairWild project in India began in 2011, but it wasn’t until 2015 that it achieved year 1 FairWild certification. One of the main reasons it took so long to get started was the fact that there were no FairWild inspectors in India and it would have been prohibitively expensive to send inspectors from Europe for the annual audit. So in 2015 we trained two local inspectors, who were both from Ecocert India (http://www.ecocert.in), a certification body that was already involved in organic and fair trade certification. A truly collaborative effort, training the inspectors was only possible with additional funding from two different projects: • A partnership project led by DICE (the Durrell Institute of Conservation and Ecology), implemented on the ground by AERF (Applied Environmental Research Foundation), and supported by Pukka Herbs. The 3 year project, “reviving socio-ecological landscapes for biodiversity conservation and climate change adaptation”, was awarded by the Darwin Initiative (http://www.darwininitiative.org.uk/ project/20016/), a UK government funding programme. • A partnership project led by TRAFFIC, implemented by AERF with support from Pukka. The one year project (extended to two), Biodiversity conservation and sustainable livelihoods: medicinal and aromatic plants (MAPs) of India, was funded by the Keidanren Nature Conservation Fund (KNCF) in Japan. Many of our team members live locally. We source several services within Bristol including our cleaning company, refuse service and organic fruit supplier and use some local logistics, packaging and marketing suppliers. We sponsor many local events and donate tea and funds to charitable organisations in the UK and overseas. We focus on supporting events and organisations that promote health and those focused on caring for the planet. This includes financing tree planting at £200 a quarter to restore ancient woodland around an organic farm with our partner the Phaladaayi Foundation. The foundation implements tree planting and water conservation projects which increase farm production. It also promotes organic farming and provides support to farmers in the form of research, training and certification. This is the non-profit branch of an organisation which supplies organic herbs though agreements with smallholder farmers. And closer to home we donate £1000 to the Forest of Avon Trust in our local community here in Bristol, UK. Trainee FairWild auditors being put through their paces 20 Building resilient communities through trading fairly This year we continued to invest in communities via our fair certification. All fair certification schemes include a ‘premium fund’ to benefit local families and community life. For example, our Fair for Life certified Tulsi (all three varieties) suppliers have used their premiums to invest in a new composting unit, and to help people in the community to fix leaky roofs. In most of the communities we source from we are not the sole supplier, so premiums from our business along with those from other companies help support investments in what the communities themselves identify as priority issues. Find out more: http://www.pukkaherbs.com/pukka-planet/ stories/pukka/pukka-tea-a-fairer-cup-from-aroundthe-world/ Tulsi pickers in India Living Himalayas Over the last three years Pukka customers have generously donated over £200,000 to WWF by drinking our teas. This has helped WWF protect the wildlife and communities living in the region known as the Terai Arc, which runs along the border between India and Nepal. These unique areas in the Eastern Himalayas are home to millions of people, incredibly rich in biodiversity, and provide vital habitat for iconic threatened species such as tigers, elephants and one-horned rhinoceros.*To find out more visit: http://www. pukkaherbs.com/pukka-planet/stories/people/ partners/teas-to-protect-tigers-rhinos-andelephants/ 21 Priorites for FY16 Key performance indicators We invested £1,481,135 (£66,122 per £million turnover) in community partnerships and local sourcing27 .This was up from £824,519 (£48,492 per £million turnover) in FY14. Working with our suppliers to identify how we can help build resilient communities together either through our fair trade premiums or supply chain partnerships. Our executive board is made up of four members of whom three are from the local community. Building creative and impactful strategic partners with our key national partnerships including The Soil Association and the Eden Project as we work together to promote our People, Plants and Planet philosophy. We have very specialised requirements for our packers, herb suppliers and testing laboratories due to our organic status, ethical and quality requirements which makes local sourcing difficult, but we commit to building supply networks in our local community where we can. And we are also working with our neighbourhood community networks to help build a healthier, happier and more resilient Bristol. “ By drinking Pukka teas, you can help us create ever-increasing cycles of good around the planet: from the wonderful feeling that comes with connecting with nature in your own home, all the way back to the growers who you support and reward for their hard work. ” 27This is estimated based on the postcodes of suppliers in our purchase ledger of independently owned organisations (not public limited companies) with both a principal base and invoice address falling within the former county of Avon. This comprises Bristol, Bath & North East Somerset, North Somerset and South Gloucestershire which is the boundary used by our Local Economic partnership and Bristol Credit Union. It does not include cash or credit card payments or payments made via expenses. It also includes VAT. 22 23 Ethical practices We recognise that our business decisions have an impact on a range of stakeholders and we have a responsibility to ensure that all our decisions at Pukka are fair to people, plants and planet. We do this by being open and honest in communications, meeting obligations and seeking and acting on feedback from our customers, suppliers, team members and other individuals and organisations. For example, we hold monthly ‘Pukka Pulse’ meetings and a suggestion box so that the opinions of all Pukka team members can be represented and acted upon to help make Pukka a great place to work. We are committed to ensuring the health, safety and welfare of our team members and protecting their freedom, equality and dignity. We source ethical products and services from ethical suppliers, including operating an ethical pension scheme. Our only lobbying activities are carried out through our membership of organisations campaigning for organics, freedom in health choices and a ban on the testing of animals. We make no political contributions. 24 Achievements for FY15 Investing in staff wellbeing and development at Pukka We encourage our team members to live life well and healthily. As part of this we offer all employees the opportunity to claim 50% off the costs of any wellbeing related activity, up to a maximum of £300 each year, and the same for development. Over the last year, 40 Pukka staff have used the fund, claiming a total of £3881.28 for wellbeing and £2113.37 for development opportunities, including gym membership, holistic treatments, sports equipment, personal training, music and sporting lessons and books. Award winning business Pukka won gold in the South West Fairtrade Business Awards 2015 recognising our commitment to sourcing fairly traded ingredients. We were also winners of a prestigious 2degrees award for the third year running! This year for our pioneering reporting with Responsible 100 www.responsible100.com Supporting staff fundraising In June 2015 a handful of Pukka staff across 4 different departments came together to take on the challenge that is the Cotswold Plod, a gruelling 40 mile overnight hike along the Cotswold way. The objective was to raise money for Action Medical Research for Children, a charity dedicated to improving the health of babies and children through medical research. Pukka donated the entry fee for the Plod and the cost of the hall hire for a fundraising event and donated money towards the team’s fundraising target. Chloe Fogaty, our Office administrator was one of the participants: “Working together and achieving something positive was not only a benefit to our health and wellbeing, but we raised just over £2000 for AMRC and connected with and supported local charities. We held our Roaring Twenties fundraising event in the Trinity Community Arts Hall and the catering for the event was purchased from Fare Share South West, who use the thousands of tonnes of perfectly good in-date food that is wasted in the South West each year and redistribute this quality surplus food to groups working with vulnerable individuals in and around Bristol”. 25 Priorites for FY16 Key performance indicators Our ethical practices are measured by our performance in the Responsible100 standard and, in respect of our team members, diversity, training and development, team member retention, staff survey results, sickness rates and salary ratio monitoring. We also report any incidents of corruption and there were none in the year. There were 97 days sick absence in total for the year. This is down from 113 in 2013/14, although sickness reporting is sporadic. There were 16 individuals with zero sick days this year. We measure gender and age diversity of our team members as shown in Table 4 below: Category of team member We have signed up with 1% for the Planet, a global movement of companies donating at least 1% of their annual turnover to environmental organisations worldwide. Although growing in the US, the idea of connecting businesses, consumers, and non-profits together for positive change in this way is new in the UK. Pukka Herbs is one of a handful of pioneering companies who have signed up to 1% for the Planet, pledging to create positive environmental change regardless of how much profit we make. We will develop and implement an Equal Opportunities and Diversity policy. Our data above highlights that we need to identify ways to bring more female representation to our senior management team. Percentage of team members Male Female Aged under 30 Aged 30-50 Aged Over 50 Senior management FY14 86% 14% 0% 71% 29% Senior management29 FY15 100% 0% 0% 80% 20% Other team members FY14 33% 67% 38% 58% 4% Other team members FY152 35% 65% 45% 50% 5% Our executive board is made up of 4 members, all male. (See priorities below) In house, we want Pukka to be a great place to work. We know that our rapid growth means that there are times when Pukka asks a lot from our team members. Staff turnover remains relatively high, with reports of stress in the workplace at times. We will work over the next year to identify pinch points and continue to focus on activities that promote staff wellbeing, in particular raising awareness and understanding of Mental Health. For example, we plan to offer training on ‘Mental Health for Managers’ and will consider introducing Mindfulness practices into our ways of working. We also want to continue to improve our health and safety reports with specific focus on making ‘near miss’ reporting the norm. Our team member turnover rate increased from 19% (12 team members) in 2013/2014 to 23% in 2014/15 (see priorities below). In our staff survey, 47% of respondents agreed that “Pukka is a great place to work”. 2829 28Board & Operating Committee: 5 members 2976 team members 26 27 Progress towards a Pukka Planet Our mission to bring the power and magic of herbs into people’s lives to help them and the planet live a healthier life progressed significantly in FY15 with increased growth of our ethical trade. We made improvements across our five sustainability themes. We seriously upped our game on tackling climate change by becoming a certified carbon neutral company two years ahead of target, and we have set an ambitious goal to be carbon neutral in our supply chain by 2045. 100% of our herbs are organically certified and we’ve continued to grow our fair certified ingredient sourcing, setting the ambitious targets here also to be 100% fair certified in our teas by end 2016. We recognise however that we have significant challenges to overcome regarding the delivery of our mission. In many cases, such as tackling climate change impacts, the issues are too big to tackle alone. We will need to work with others in our industry and beyond to help create a Pukka planet. In order to fully understand our impacts, we must improve our sustainability materiality assessment (identifying our big issues to tackle), stakeholder dialogue (working more formally the people and communities that our business touches to identify issues and find solutions together), data gathering and reporting, which we commit to improving in FY16 and beyond. Last but not least we have signed up to 1% for the Planet, committing to donate 1% of our turnover to environmental charities regardless of how much profit we make. 28 29 Appendix 1: Challenge updates from last year’s report Sustainability Theme Challenge from 2013/14 report Update Product Excellence The sachets used to protect the high essential oil content of our teas not currently recyclable. Ongoing challenge. See Product Excellence. Our computer system does not allow us to adequately monitor our sustainability performance data. New enterprise resource planning (ERP) system expected in 2014/2015. Ongoing challenge, although a new ERP system (IFS) is being phased into the business from Feb 2016 (outside this report scope).** The carbon footprint of our teas is heaviest at the consumer use phase, followed by the manufacturing phase, followed by the agricultural phase; none of which are in our direct control. As we grow, we hope to have more influence over the choices our suppliers make as well as the resources to encourage energy efficiency and the switch to renewable energy by our consumers. Ongoing challenge. See Climate Change priorities. Pukka will offer a year’s supply of tea as an incentive for switching to GoodEnergy - planned for 2016 (outside this report scope). In the future, our new offices are likely to not be under our operational control. This may affect our ability to use a supply tariff certified under the Green Energy Supply Certification Scheme. We will move offices in 2016. This remains a potential challenge, although our new office location is not confirmed (at publication) Data collection challenge as above. As above ** Data regarding the most sustainable options is often not publically available and may be biased or out-ofdate. Ongoing challenge, beyond our control. We seek external expertise where possible. Climate Change Resource Efficiency Appendix 2: Sustainability Policy Pukka Herbs founded in 2001 with the purpose of bringing the incredible power of plants to as many people as possible. We have a collection of organic and fairly traded herbal teas and wellbeing remedies that are all sourced, manufactured and distributed with the principle of optimising sustainability at every step of the chain. We use over 200 species of medicinal herbs, sourced from over 30 countries working with thousands of farmers. Our commitment to sustainability is embedded within our purpose of bringing amazing tasting teas and effective wellbeing remedies to the customers we serve around the world. We are committed to continually improving the social and environmental performance of Pukka to support healthy living though the provision of the highest quality herbal products. We meet organic, Fairtrade and FairWild certification standards for appropriate certified products which conserve plant resources and protect ecosystem services and human rights. We also provide our suppliers and growers with support to improve the yield and quality of their products and the wellbeing of their team members, communities and environment. Data collection challenge as above As above ** Sustainable Communities Ethical Practices We have very specialised requirements for our packers, herb suppliers and testing laboratories due to our organic status, ethical and quality requirements which makes local sourcing difficult. Ongoing challenge. See sourcing policy (Appendix 4) Internet search engines and the widespread use of search engine optimisation by larger companies means that smaller businesses are not always easy to find. Ongoing challenge. We attend many Bristol green networking events to find ethical local suppliers. Data collection challenge as above. As above ** We have outgrown our current building and our team have limited access to leisure and wellbeing facilities. We will move to new offices in 2016. Wellbeing fund established to enable activities outside of work. Our complaints monitoring system includes areas of duplicated effort and does not store the action undertaken in the same place as the no. of complaints and type of action. All of our people data are managed using manual systems which is not efficient. We do not collect data on ethnicity 30 As above ** As above ** We operate a culture of fairness, openness, trust and integrity through sourcing, sharing and giving. We comply with all applicable legislation and prevent pollution from our facilities and operations. We assess the lifecycle impacts of our products and minimise resource use and waste. We measure and report our greenhouse gas emissions and work with our whole value chain to mitigate our impact on climate change and adapt to its effects. We communicate our policy to our team members, contractors and other stakeholders and its values publically via Pukka Planet to promote our vision to the outside world. We provide case studies of sustainable living and facilitate exchange so that we can all learn from each other. We review our policy on an annual basis and report our sustainability progress annually on our website and through Responsible 100 (an open source business responsibility community) to ensure transparency of and accountability for our actions by seeking and responding to external scrutiny. All of these principles are underpinned by Ayurveda, the traditional Indian health system. Its guiding principles are all about fulfilling your potential, and this can be described by the word dharma. This is the true nature of your life-path and promotes a life that supports a healthy individual, society and environment. Dharma, is an ancient concept, promoting a lifestyle that embodies continuity, social awareness and right moral conduct. It is a code that inspires us to keep the whole world whole. Deep down, dharma is about sustainable living and fulfilling Ayurveda’s main focus of healthy living. This is why it is at the heart of everything we create at Pukka as well as being integral to us living our sustainability policy. 31 Appendix 3: Climate change Policy This climate change policy underpins Pukka Herbs’ sustainability policy to mitigate our impact on climate change and adapt to its effects. We recognise that climate change poses a serious risk to global prosperity, sustainable development and security and we support government policies and measures that prepare us to succeed in a low-carbon and climate-resilient economy. We will build our capacity to understand fully the implications of climate change for our business and implement a strategy for minimizing risks and identifying opportunities. We will be a champion for rapid and extensive climate action and will work collaboratively with our partners to implement greenhouse gas reduction initiatives and adaptation projects. We believe that the strongest evidence of our commitment to climate change mitigation is to achieve carbon neutrality for our company and we aim to achieve this by 2017 as a result of the following actions: • • • We will minimise our energy use and encourage low-carbon transportation We will work to minimise our product carbon footprint over the complete lifecycle We will continue to send zero waste to landfill and will consider the carbon cost of our procurement In additional to our carbon neutral commitment, we will undertake the following climate actions: • • • Our offices and warehouses will continue to be powered by 100% renewable electricity We will promote energy conservation and the use of renewable energy by our suppliers and the wider community We will invest annually in community renewable energy, forest conservation and climate adaptation projects We will set climate change targets and will report all direct emissions (Scope 1), indirect emissions from purchased electricity (Scope 2) as well as other indirect emissions (Scope 3) for which activity data is available and strive to continually improve our data coverage and calculation methodology. We will offset all of our reported emissions through verified Gold Standard carbon offset schemes to maximise the social benefits of our contributions. We will report publicly and annually on the achievement of those targets in our annual sustainability report, financial statements and through our membership of the West of England Climate Challenge. We will seek and respond to external scrutiny through our membership of the Responsible 100 Standard for ethical performance. Appendix 4: Sourcing Policy Pukka’s vision is to build a successful business that has a positive impact on people and the planet through producing the highest quality organic herbal products. This core purpose guides our overall Sustainability Policy and specifically, our approach for the growing, collection and processing of the essential herbs we need to source to delight our customers. The purpose of this document is to outline Pukka’s policy in relation to sourcing these critical raw materials. Our sourcing policy can be broken down into three main themes: 1) Trading Fairly, 2) Environmental Sustainability, 3) Product Quality and Safety. Trading Fairly Pukka operates a culture of fairness, transparency, trust and integrity with all our raw material suppliers. All supplier relationships are based on Pukka’s principles of partnership, in which all parties agree to a ‘long-term working relationship in which there is a mutuallybeneficial flow of information and resources with a shared vision of continual improvement of service and products’. We purchase the raw materials direct from the country of origin ourselves or we work with partners who purchase on our behalf. Regardless of how the raw materials are sourced we will ensure there is an appropriate level of traceability and quality control, and that we have the opportunity to visit the farmers and/ or collectors to gain a mutual understanding of each other’s challenges and needs. We will use certified fair raw materials where the quality and availability are appropriate for our products. Regardless of 3rd party certification status, we conduct internal supplier audits to ensure that producers have good working conditions and are fairly remunerated for their work. Environmental Sustainability All of our raw materials are certified organic by internationally recognised and accredited certification bodies. This provides assurance that the raw materials are grown and/or collected using organic methods that rely on ecological processes, biodiversity and natural cycles adapted to local conditions, rather than the use of artificial inputs with adverse environmental impacts. We only source wild collected herbs if we can guarantee that the collection is carried out in a sustainable manner. Where possible FairWild certification is obtained to provide 3rd party assurance of sustainability through rigorous resource assessments, monitoring and regeneration studies. In all activities related to sourcing of raw materials we strive to reduce carbon emissions, minimise waste and conserve resources. We have long-term commitments to partners to support conservation and carbon sequestration projects. This supports our carbonneutral policy. Product Quality & Safety We use pharmacopoeial grade raw materials as the benchmark for our quality standards; this means that before herbs are approved for use in Pukka’s’ products they must adhere to quantitative and qualitative parameters as specified in selected national pharmacopoeias. Where necessary we provide our partners with training and/or guidance on how to implement best practices to achieve pharmacopoeial grade herbs (summarised in a set of guidelines known as Good Agricultural and Collection Practices for Medicinal Plants, or GACP for short). Suppliers must demonstrate strong controls for key criteria; selection of seed, methods of cultivation and processing, packing and storing dried raw materials. For those materials for which there are no pharmacopoeial standards, we use our own specification to ensure consistency in quality. All raw materials are rigorously tested to be safe for consumption and for consistent high quality. This policy will be communicated to all team members, contractors and stakeholders and will be reviewed every two years. 32 33 A big Pukka thanks to… With grateful thanks to Anne Barr and Vicky Murray for writing this report and to Ally Grieveson, Barry Moore, Ben Heron, Chloe Fogarty, Dace Jece, David Anderson, Ian Ashbrook, Laura Jones, Marin Anastasov, Mark Gracey, Mike Lee, Saf Hareshe and Tony Pottrell for providing the data, Tom de Pass for creative input, Sarah Holloway for her expert guidance (http://www.sarahholloway.co.uk/), Lizzie de Pass for the beautiful design (www.elledeepea.com) and everyone at Pukka for supporting our vision to create a Pukka Planet benefiting people, plants and planet.