here - arvid nordquist
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here - arvid nordquist
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. 5 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 6 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. 7 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 8 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 9 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 11 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 12 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. 13 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. 14 15 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. 16 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. 17 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 19
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