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ARVID NORDQUIST
Sustainability Report 2014
& Certification Guide
”
In 2014, we took the step of offering only100%
sustainability certified coffee to our customers. At the same
time, we have also increased our range of certified foods
and wines. We have chosen to do this to meet the growing
demand for ecolabelled and sustainability labelled products,
but also because we feel it is important to take responsibility for
reducing the negative impact on people and the environment. As
a company, we want to help combat social injustice.
To make things easier for our customers and consumers who also
want to act responsibly, we offer a wide range of ecolabelled
and sustainability labelled products. It can, however, be difficult
to keep up with the many different labelling schemes that we
and others use. Some only apply to one type of product, while
others cover many different product groups, and some focus on a
specific issue.
We therefore begin our first sustainability report with a review of
and guide to the labelling schemes, before reporting on the goals,
actions, results and challenges that our sustainability work entails.
We have begun our progress towards a sustainable
Arvid Nordquist, and we hope as many of our
suppliers, customers and consumers as possible
will be keen to join us on this important and
necessary journey.
Anders Nordquist, CEO
2
”
ABOUT CERTIFICATIONS
4-5
Overview Certifications
6-7
Certification Audit
7
8-9
SUSTAINABILITY REPORT
10-15 Results
MOVING FORWARD
CRITERIA & INDICATORS
16-17
18
Certifications
3
Introduction
ABOUT CERTIFICATIONS
Over recent decades, there has been a minor revolution in the range of certified
food and drinks. The supermarket shelves are packed with evermore goods
bearing labels certifying more sustainable production..
4
When ecolabelling was in its infancy,
it was often the companies that
established their own requirements
and compliance checks. It was not
uncommon for a business to paint
a rather rosy picture of itself, and
consumer confidence plummeted. In
response to the dip in support, many
began using external control bodies.
And so third-party certification was
born and confidence began to recover.
INCREASE
It is not just the volume
of certified goods that has risen in
recent years; the number of certification
schemes has also increased. In fact, the
number of labels continues to grow, with
many of them ‘single-sector’ labels –
applying to one specific product group.
More players are entering the market
for labelled products all the time,
and more companies are
developing their own labels.
CRITERIA & BACKGROUND
To shed a little light on some of the
certifications you can find in store, we have
gone through the criteria and background
for the labels that are relevant to Arvid
Nordquist’s range, plus a few others that
serve as a point of comparison.
In the review, we have used the criteria of
the State of Sustainability Initiatives project.
For each label, we have analysed the
degree to which the label sets requirements
concerning the respective criteria. We have
chosen to focus on criteria that we consider
to be important for a better environment
and improved living conditions. Some of
the certification schemes go a long way in
their ambition to reduce negative impacts,
and we wish to highlight these as examples
of best practice – worth being inspired by
and following.
Better environment and
improved living conditions!
One of the key factors in improving living conditions
and increasing investment in environmental improvements is increasing the earnings of growers in underdeveloped parts of the world. It is not always easy to
analyse how far the certification scheme contributes
to higher profits for the producers, and in the long
run to reducing poverty or ensuring the sustainable
continuation of production. Studies have shown that
the yields from agriculture in underdeveloped parts
of the world have risen with the help of certifications
that combine reduced environmental impact with
better working conditions, education and support for
improved farming methods. Larger volumes, better
quality and higher prices – thanks to the premium
that certification brings – are all contributing to
greater profits.
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Overview
CERTIFICATIONS
KRAV
Fairtrade
Rainforest Alliance
UTZ
4C
SCS Sustainably
Grown
Purpose of certification
Organic certification.
Ethical labelling.
Sustainable forestry
and farming,
biodiversity.
Sustainable supply
chains, transparency
and quality.
Greater responsibility.
Sustainability
labelling.
Food
yes
yes
yes
yes
no
yes
Coffee
yes
yes
yes
yes
yes
yes
Wine
yes, grapes
yes, grapes
no
no
no
yes, grapes
Initiative
Multi-party initiative.
Member-run.
Own initiative.
Multi-party initiative.
Industry initiative.
Own initiative.
Control system
Certification audit
each year,
unannounced visits.
Certification twice
every 3 years, check
every year in between.
Unannounced visits.
Certification every
3 years, check every
year in between.
Unannounced visits.
Certification audit
each year,
unannounced visits.
2nd-party verification
every 3 years, selfassessment each year.
3rd-party certification
each year.
Unannounced visits.
Human rights
ILO Core Conventions
Gender equality
Health and safety
Local commitment
Pay
Contribute to greater earnings
Land/soil
Biodiversity
GMO ban
Waste
Water
Energy
Climate
Chemical restrictions
Chemical additives
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Requirements: None
Pay:
1-33 low
34-66 medium
67-99 high
100 full
None
Earnings: N/A
Minimum wage
No
Recommendations
for living wage
Partly
Requirements for
living wage
Yes
Global GAP
USDA Organic
Soil Association
EU-organic
Bio Siegel
Debio
Demeter
Carbon offset
through Plan Vivo
Sustainable Wine
South Africa
growing
Sustainable Wine
South Africa
wine production
Sustainable
Winegrowing NZ
growing
Sustainable
Winegrowing NZ
wine procution
High Environmental
Value
Sustainable
Viticulture
Champagne
Fair for Life
Sustainability
labelling.
Organic certification.
Organic certification.
Organic certification.
Organic certification.
Organic certification.
Biodynamic.
Climate.
Sustainability
labelling.
Sustainability
labelling.
Sustainability
labelling.
Sustainability
labelling.
Reduce the
environmental impact
of growing.
Reduce the
environmental impact
of growing.
Ethical labelling.
yes
yes
yes
yes
yes
yes
yes
yes
no
no
no
no
no
no
yes
yes
yes
yes
yes
yes
yes
yes
yes
no
no
no
no
no
no
yes
yes, grapes
yes, grapes
yes, grapes
yes, grapes
yes, grapes
yes, grapes
yes
yes
yes
yes
yes
yes
yes
yes
yes
Industry initiative.
State.
Own initiative.
State.
State.
Statligt.
Own initiative.
Own initiative.
Industry initiative.
Industry initiative.
Industry initiative.
Industry initiative.
Industry initiative.
Own initiative.
Own initiative.
Certification audit
each year,
unannounced visits.
Certification audit
each year.
Certification audit
each year,
unannounced visits.
Certification audit
each year,
unannounced visits.
Certification audit
each year,
unannounced visits.
Certification audit
each year,
unannounced visits.
Certification audit
each year. Some
unannounced visits.
Own verification each
year.
Self-audit each year,
random checks.
Self-audit each year,
random checks.
2nd-party verification
every 3 years, selfassessment each year.
2nd-party verification
every 3 years, selfassessment each year.
3rd-party certification
every 3 years.
3rd-party certification.
No requirements on
how often checks
should be made.
Certification audit
each year.
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Method
CERTIFICATION AUDIT
SUSTAINABILITY REPORT
Health
& safety
2014
Water
access to healthcare
You are holding in your hand our first ever sustainability
report. We have taken several steps in our drive to reduce
our negative impact on the environment and social
systems, and now we want to share our successes.
minimum wage
diversity
Local commitment
training
Making a fair comparison on every point is almost impossible.
There
increased
are differences in nuance and detail, but also in crucial factors such as
the market in which the certification scheme operates and its purpose.
Nevertheless, we intend to grasp the nettle and make an attempt.
earnings
Human rights
Waste
for work of
equal value
COMPARISON
safe working
environment
Equal pay
We wish to show the similarities and differences between the labels on
the market, and give an indication of our reasoning when choosing
which products and certification schemes to focus on. The initiatives
we currently support by purchasing their products are ones that we
think maintain a high standard and are truly credible.
Health &
Safety
Minimum age
combat erosion
Anti-discrimination
REASONING
biodiversity
The certifications selected for review are found on
Arvid Nordquist’s products, are usual in trade or
appear on products comparable with ours. There are
many other interesting initiatives, but in this report
we have chosen to limit our scope.
pesticides
School for children
of employees
Energy
Pesticides
Gender equality
Land & soil
Climate
Control System
We have drawn on many good references to help us, but the main
sources of information have been SSI/Entwined’s report ‘The State of
Sustainability Review 2014’ and the various certification schemes’ own
documentation and standards.
The comparison is based on the same criteria and indicators that are used by SSI, although some criteria have
been excluded due to lack of space. The SSI report only includes some of the certifications we are comparing.
For the others, we have gone through the standards and compared them with the indicators in the SSI report.
Our guide focuses on the areas we think are of particular importance and significance in achieving sustainable,
fair and ethical production that turns the spotlight on poverty reduction, human rights, the ILO Core Conventions,
gender issues, a living wage, biodiversity, the climate and pesticide use. In the guide, we have chosen to take a
‘stricter’ stance by prioritising the initiatives that set obligatory requirements over those that set recommendations
or have several different levels. Summary of the criteria and indicators we have assessed is found on page 18.
SUSTAINABLE
PRODUCTION
FAIR
PRODUCTION
ETHICAL
PRODUCTION
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OVERVIEW
OUR TARGETS
In our business, we are dependent on what others
do – how suppliers, customers and other partners
tackle sustainability issues. It is a challenge to
reach out to all these business contacts with our
wishes and our requirements, and to access all the
information we need to gain a picture of the total
impact that our business has.
To meet these challenges and contribute to
sustainable development, we have set four
concrete sustainability targets that are to be
achieved by 2020 at the latest:
In order to gain an overview of our total impact,
in 2014 we conducted a major survey of our
sustainability status in all product areas along the
whole of our value chain, and we identified our
five most prominent sustainability challenges:
Carbon footprint along the whole value chain
Artificial fertiliser, water and pesticides
Corruption and human rights
Resilient food supplies
Knowledge, control and communication
VISION
We want to be a company that is associated with
sustainability, and our employees have a key part
to play in this. We have therefore trained everyone
in the company on sustainability and followed up
on how successful our work has been through our
employee survey.
We are, of course, proud of what we have done,
and of our successes, but above all, we are
inspired to continue. We have seen that change is
perfectly possible.
The company Arvid Nordquist
Our Organisation
ENVIRONMENT
PEOPLE
ECONOMY
1. We shall have at least 80% certified
products.
2. At least 50% of our business shall be
fossil-free.
3. 100% of our major suppliers shall be
audited.
4. At least 90% of our customers, suppliers,
coffee consumers and employees shall
associate us with sustainability.
We are beginning to see the fruits of the work we
have already begun. We have taken a big leap this
year in terms of the share of certified products.
We also know it remains a long way before we
feel satisfied.
By 2020, half of our business is to be fossil-free.
The biggest challenge here lies in deliveries of
goods to us, since we are not always able to clearly
control which type of transport and fuel is used. The
solution lies in intensive improvement work together
with our partners.
We have begun the task of auditing our major
suppliers using a digital questionnaire and followup tool. A great deal of work remains before we
will have a complete picture of all the
circumstances involved.
From farm to consumer
Our Value Chain
Minimise our own
impact on the climate
and environment
Shared responsibility
from raw material to
waste
Treat our own staff fairly
and honourably
Fair trade and code
of conduct requirements
Ensure the company’s
survival in the short term
and long term
Shared interests and
partnership with costumers
and suppliers
Locally and globally
Wider Society
Contribute to
environmental improvement
initiatives
Promote people’s health
and wellbeing
Contribute to society’s
prosperity and
development
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Summary
RESULTS SUSTAINABILITY REPORT
In 2014, Arvid Nordquist had a resource flow of just
over 55,000 tonnes. This is the total quantity of food
and packaging that has passed through our value chain
all the way to our consumers in the Nordic region. In
order to follow up on our sustainability targets, we
have now reviewed our impact and the results of our
improvement work.
61%
SUSTAINABILITY CERTIFIED
PRODUCTS
CERTIFICATIONS
With six years left until 2020, the target of 80% certified products
has quickly come within reach. The proportion of sales of products
with sustainability certification approved by Arvid Nordquist rose
from 44% to 61% in 2014. This means that almost two-thirds of
Arvid Nordquist’s sales are now sustainability certified.
Arvid Nordquist coffee
– 100% sustainability certified.
The substantial increase is largely due to the Coffee product area,
since 2014 marked the transition to offering Arvid Nordquist coffee
that is 100% sustainability certified. The proportion of certified
product sales also rose in the Food and Wine product areas over
the year. Sales of HiPP organic baby food grew by around 20%
and the Food range was expanded to include a brand of certified
sweets: Ekorrens ekologiska. In the Wine product area, bestseller
Candidato has switched to organic and several new certified wines
have been launched. We are constantly seeking out new quality
wines with sustainability certifications and over the year we
achieved a level of 63% certified in our wine and beer range.
Proportion of sustainability certifications per product area (%)
100
2013
90
2014
80
70
60
50
40
30
20
10
0
10
Food
Wine
Coffee
Total
USE OF RESOURCES
Growing Arvid Nordquist’s products makes use of land,
water and agricultural supplies. In 2014, just over 20,000
hectares of agricultural land was farmed to produce our
goods. Almost 4,900 tonnes of mineral fertiliser and a
shade over 330 kg of pesticide were used in the production.
In relative terms this represented a reduction, since the
proportion of certified products increased by almost 40%,
and such farming makes no or little use of pesticides and
artificial fertiliser. Almost 5.5 million cubic metres of water
was used, some of that in certain sensitive areas.
Use of resources 2014
- just over 20,000 ha of agricultural land
- almost 4,900 tonnes of mineral fertiliser
- a shade over 330 kg of pesticide
- almost 5.5 mn m3 of water
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Summery
RESULTS SUSTAINABILITY REPORT
11%
CARBON FOOTPRINT
A steep rise in sales caused our carbon footprint to
increase over the year, from 86,000 tonnes to nearly
104,000 tonnes CO2e. The largest component of the
carbon footprint comes in the growing phase, but the footprint of deliveries from suppliers is also relatively large, since
our products are generally imported from countries that are a
long distance geographically from Sweden.
FOSSIL-FREE ENERGY
IN TRANSPORT AND ROASTERY.
Carbon footprint and fossil-free business (tonnes CO2 e)
120 000
100 000
80 000
60 000
Growing
Processing
Inward
delivery
40 000
Packaging
Distribution
20 000
0
2013
2014
ENERGY
39,000 MWh energy was used in transport and at the roastery. There is a good deal still to be done to reach the target
that Arvid Nordquist’s business shall be 50% fossil-free by 2020. In 2014, a figure of 11% fossil-free energy use was
achieved in these areas.
Our transport suppliers are gradually increasing the addition of biofuels and over the year, we switched our inward
deliveries of products including the rosé wine Puychéric and GreyPoupon mustard from road to rail.
Energy usage fossil-based/fossil-free (kWh)
40 000 000
1%
8%
Fossil-based
1%
Distribution
7%
35 000 000
Processing
30 000 000
Inward delivery
25 000 000
12%
Fossil-free
20 000 000
Distribution
15 000 000
Processing
10 000 000
71%
5 0000 000
0
Fossil-based
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Fossil-free
Inward delivery
SUPPLIER AUDITS
In its task of auditing all suppliers and ensuring good
performance on the environment and social sustainability, Arvid Nordquist uses a digital supplier control
system. Questionnaires were developed over the year
to simplify things for the respondents, and thus improve
the response rate.
In the previous year, around 25% of the suppliers found
the time to complete the questionnaire. Issues concerning
sustainability are also tackled on an ongoing basis in
meetings with our suppliers and when we visit the
production sites. We are also gradually establishing
specific sustainability partnerships with our suppliers.
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Summary
RESULTS SUSTAINABILITY REPORT
ASSOCIATED WITH SUSTAINABILITY
The target that 90% of our customers, consumers, employees
and suppliers shall associate us with sustainability by 2020 is
to serve as an indicator that we are on the right path. It is clear
that our work has made an impression, since this target was
practically already reached in 2014.
The customer and employee surveys conducted over the year
show that 90% of supermarket customers and more than 90%
of employees associate Arvid Nordquist with sustainability.
90%
SHALL ASSOCIATE US WITH
SUSTAINABILITY BY 2020.
Survey sustainability (%)
Arvid Nordquist employees 2014
Supermarkets survey 2014
100
90
80
70
60
50
40
30
20
10
0
Are you aware of the company’s
sustainability work?
Do you feel that Arvid
Nordquist is a leader in
sustainable business?
In your job, are you able to
have a positive influence on
the company’s sustainability
work?
How would you rate the
suppliers’ ability to work on and
take responsibility for issues of
sustainability and CSR?
In Sustainability Brand Index consumer survey of 2014, Arvid Nordquist Coffee came in 11th place in the
food sector, after companies such as Saltå Kvarn, Lantmännen, Arla and Scan. Which is a gain of the previous year.
As regards the environment we came in ninth, and on seventh place on social responsibility.
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MOVING FORWARD
2014 has seen us analyse our impact, identify our challenges, set
targets, take action, follow all this up and produce a report.
The focus on certifications is a core component of our
sustainability work, since they make us better able to check and
monitor our suppliers. The use of resources is being curtailed
and made more sustainable. The rights of the people involved in
production are being upheld to a greater extent.
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OVERVIEW
The examination of the certifications highlighted
the fact that some key criteria are still not given
sufficient weight in the vast majority of certification
schemes. The issue of climate change is one, as
is the issue of a living wage, which could have a
real impact in the fight against poverty. Experience
and research also show that investments in
strengthening the position of women and maintaining a clearer focus on gender issues have an
excellent effect in reducing poverty.
Work on developing the certification standards is
a continuous process. We therefore believe these
issues will be given greater attention in many
certification schemes at some point in the future.
WHERE ARE WE NOW?
Over 61% of our products are certified and 100%
of our coffee is certified as either organic, Fairtrade
or UTZ. We have also offset the carbon emissions
for our coffee, our olive and rapeseed oils and
some of our wine by planting trees through the
Plan Vivo project.
61% of our products are certified
100% of our coffee is certied with either
organic, Fairtrade or UTZ
Offset the carbon emissions by planting trees
CHALLENGES
Our greatest challenges relate to our carbon
footprint and the climate. Our goods are
delivered to us by modes of transport that use
over 95% fossil fuels, something that we currently
have little scope to influence directly, since it is
usually our suppliers who are responsible for the
shipments. The transport used for distribution to our
customers, an area where we are better able to set
requirements, is around 20% fossil-free.
We are a company that relies on what the soil provides, and that makes a mark.
Our main impact occurs locally in the countries where the growing, harvesting
and packing take place. Our target of checking all our suppliers has not yet
been reached, and it will still take some time. Achieving sustainable and resilient
production of the coffee, food and wine we sell depends not only on us monitoring
our suppliers, but also on a large dose of transparency and trust. In the next report,
our ambition is to be able to report even more progress than we have seen so far.
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BELOW IS A SUMMARY OF THE CRITERIA AND INDICATORS WE
HAVE ASSESSED IN THE CERTIFICATION GUIDE.
Criteria area
Control system
Human rights
Gender issues
ILO Core Conventions
Indicators
- Third-party certification
- Annual checks
- Unannounced visits
-
Criteria area
Land/soil
- Requirement to combat erosion
- Requirement to maintain soil quality
Biodiversity
- Requirement to set aside land to
preserve biodiversity
Requirement on housing standards
Requirement on healthcare provision
School for children of employees
Training for employees
- Anti-discrimination
- Women in leading positions
- Requirement to strive for gender
neutrality in the workplace
- Women´s health
- Requirement to use methods that do
not jeopardise biodiversity
- Ban on claiming areas of high
biodiversity for production
GMO ban
- Ban
Waste
- Reduce amount of hazardous waste
- Requirement for an effective and safe
waste management system
- Requirement to minimise emissions
of pollutants to air, water and soil
- Ban on forced and hard labour
- Freedom of association and protection
of the right to organise
Water
- Right to organise and bargain
collectively
- Discrimination in respect of
employment and occupation
- Requirement for wastewater treatment
Energy
- Requirement to phase out the use of
fossil fuels
- Opposition to the worst
of child labour
Local commitment
18
- Requirement for a safe working
environment
- Access to clean drinking water
- Access to clean toilets
- Access to occupational healthcare
- Training in health and safety
- Requirement for local participation
- Requirement to employ local people
Pay
- Requirement for minimum wage
- Requirement for living wage
Contribute to greater
earnings
- Price premium
- Programme/training/support
for improved productivity
- Calculate and survey energy
consumption
- Requirement for energy efficiencies
- Minimum age for work
Health and safety
- Requirement to have water-saving
measures in areas of water scarcity
- Requirement for a plan to reduce
water consumption
- Equal pay for work of equal value,
irrespective of gender
- Abolition of forced labour
Indicators
- Transition to renewable electricity
Climate
- Requirements to measure
carbon emissions
- Requirement for measures to reduce
emissions and to document this
- Climate issues taken up in a
separate section as a critical factor
Pesticides
- Total ban on the use of pesticides
- Integrated pest management
- Application of a ’restricted use’ list
CONTACT
Arvid Nordquist HAB
Box 1285
S-171 25 Solna, Sweden
Phone: +46 (0)8-799 18 00
E-mail: [email protected]
www.arvidnordquist.se
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