ARVID NORDQUIST
Transcription
ARVID NORDQUIST
ARVID NORDQUIST Sustainability Report 2015 & Certification Guide ” The trend of eating more sustainable food was confirmed in 2015, and demand for products with ecological, Fairtrade-certified and other certifications continued to increase. In our sales, we have seen signs of people’s greater understanding and commitment regarding sustainability issues. 2015 was also a year with many sombre headlines of crises, wars and disasters. At the same time, the world in many ways is a better place to live in now than previously. Never before has such a small proportion of the global population been poor, and never before have so many children gone to school as now. A new international climate agreement was reached, accompanied by tears of joy and backslapping. Much remains to be done regarding the environment and the climate, as well as for mankind and social systems. In order to meet these challenges, the United Nations established during the year 17 global goals for environmentally, socially and economically sustainable development. More companies, organisations and institutions have adopted the new goals compared with the previous Millennium Development Goals, and related their activities to them as well as taking them more seriously. We have done likewise at Arvid Nordquist. Over a period of years, we have based an increasingly larger proportion of our operations on various sustainability certifications. In the years to come, we shall also focus on the relevant sustainable development goals. This Sustainability Report contains a review of the global goals for sustainable development in order to identify those that are most pertinent for us, as well as which goals relate most to our operations. We also compare the contents of our certifications with the goals to see how our certification procedures lead to achieving the global development goals. We naturally also review our own operations, what we have done during the past year, the challenges that lie ahead, and our objectives regarding our sustainability work. We hope that you will join us on this important journey. Anders Nordquist , CEO 2 ” The UN’s development goals 4-6 7 8-9 Sustainability report introduction 10-11 Results 12-14 Sustainability labels Overview certifications 3 THE UN’S DEVELOPMENT GOALS Arvid Nordquist’s contribution to achieving the UN’s global goals. In 2015, the United Nations adopted 17 global goals for economically, socially and environmentally sustainable development, and resolved to ensure that they be fulfilled by 2030. They are a continuation of the eight Millennium Development Goals, which have already contributed to important development progress. Extreme poverty has been halved compared with the level in 1990, although around 1.2 billion people still live in extreme poverty. Gulfs are growing both among and within a large proportion of the world’s countries. And we face enormous challenges with regard to climate change and the related consequences. 4 THE NEW GOALS A crucial difference between the new global goals and the Millennium Development Goals is that the new goals are global, instead of being oriented towards developing countries. The new goals also embrace the entire sustainability issue and cover both the environment and the fight against poverty, because it is not possible to solve poverty and environmental and climate challenges separately. End poverty in all its forms everywhere. End hunger, achieve food security and improved nutrition and promote sustainable agriculture. Ensure healthy lives and promote well-being for all at all ages. The goals are rather vaguely formulated, and provide scope for players to specify which goals are significant for them, and how they interpret them. It is important to bear in mind that it is not the UN that will realise the fulfilment of the global goals - but that this responsibility shall be that of all society: trade and industry, civil society, politicians, and public authorities. ”The responsibility lies with all society” It is a natural further stage in Arvid Nordquist’s sustainability work to consider which of the goals are relevant for our company, which goals we have the possibility to contribute to in our operations, and which goals we are dependent on being achieved so as to be able to continue our activities in the future. Ensure inclusive and quality education for all and promote lifelong learning. Achieve gender equality and empower all women and girls. Ensure access to water and sanitation for all. BILD Ensure access to affordable, reliable, sustainable and modern energy for all. Promote inclusive and sustainable economic growth, employment and decent work for all. Build resilient infrastructure, promote sustainable industrialisation and foster innovation. Reduce inequality within and among countries. Make cities inclusive, safe, resilient and sustainable. CAN WE ACHIEVE THE GOALS BY FOCUSING ON LABELS? Ensure sustainable consumption and production patterns. An important part of Arvid Nordquist’s sustainability work is to focus on goods with sustainability labels and certifications. We believe that this approach enables a good contribution to sustainable development and to fulfilling the global goals. In order to appraise to what extent this is correct, we have compared the requirements in and the goals for the certifications that we use with the 17 global goals and the 169 sub-goals. In the first stage, an appraisal was made of the 17 global goals where Arvid Nordquist has an influence - or the possibility to influence - through its operations and production of goods. An analysis was then made as to whether the certifications could contribute to fulfilling the goals that are relevant for Arvid Nordquist’s operations. Take urgent action to combat climate change and its impacts. Conserve and sustainably use the oceans, seas and marine resources. Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss. Promote just, peaceful and inclusive societies. Revitalise the global partnership for sustainable development. Further information about the method and the background material is available at our website. 5 RELEVANCE FOR ARVID NORDQUIST Of the 17 global goals for sustainable development, 10 are relevant for Arvid Nordquist to take into consideration - either through demands on suppliers or on our own operations. We have compared these 10 goals with the criteria and objectives of the sustainability certifications used for our products. There are therefore 18 sustainability certifications that have been compared with the 10 relevant global goals. Relevant Relevant to a certain degree GOOD EFFECT Sustainability certifications have a good effect for three of the goals: Goal 6: Ensure access to water and sanitation for all. Goal 12: Ensure sustainable consumption and production patterns. Goal 15: Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss. CERTAIN EFFECT Sustainability certifications have a certain effect for five of the goals: Goal 1: End poverty in all its forms everywhere. Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for all. Goal 13: Take urgent action to combat climate change and its impacts. Goal 17: Revitalise the global partnership for sustainable development. We have gained insight as to what we need to work more with, which sustainability certifications reach furthest within the relevant global goals, and which goals are not reached through the certifications that we use. We have chosen to a large extent to use UTZcertification for our coffee, and the results of our survey show that this was a good choice. Our investment in sustainability certifications has the capacity to provide good results. At the same time, it shows that two of the goals that we have identified as being relevant - goals that concern gender equality and equal opportunities - are not being achieved through the certifications that we use. One of the challenges that we face is therefore to find strategies that will contribute to the goal of gender equality, in dialogue with the certifications that we use. NO APPARENT EFFECT Sustainability certifications have no apparent effect for two of the relevant goals: Goal 5: Achieve gender equality and empower all women and girls. Goal 10: Reduce inequality within and among countries. GIVE RESULTS FOR MOST GOALS We have also seen which of the certifications give results for most goals. In this comparison, Fairtrade and the Universal Trade Zone (UTZ) have come furthest, closely followed by Krav, Rainforest Alliance, SCS Sustainably Grown, and Sustainable Wine Production South Africa. These are examples of certifications that embrace sustainability work broadly, and that include ecological, economical and social aspects of their goals and standards. 6 The following parts of the Sustainability Report describe what we have done within the framework of our sustainability work, our goals, as well as our various challenges. SUSTAINABILITY LABELS It is not easy to find a complete overview of the most important sustainability labels for foodstuffs. Our Sustainability Report for 2014 contained a theme about various sustainability labels and the content of their respective standards. We also published a table overview that was much appreciated, and we have therefore chosen to publish it again this year. In this overview, we have used the same criteria and indicators that are used by the State of Sustainability Initiative (SSI). The SSI is an NGO that analyses and reports the qualities, performance and trends of different sustainability initiatives so as to help decision-makers navigate in an ever-increasingly complex world of sustainability standards. 7 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 75 67 80 93 47 75 ILO Core Conventions 100 100 100 100 85 100 Gender equality 0 73 53 70 25 50 Health and safety 50 100 80 95 35 100 Local commitment 0 0 90 0 0 100 Pay 50 75 50 75 20 75 Contribute to greater earnings Nej Ja Till viss del Ja Nej Nej Land/soil 100 60 80 80 20 75 Biodiversity 100 60 93 13 13 15 GMO ban 100 100 100 0 100 100 Waste 100 53 60 33 30 30 Water 100 50 70 95 30 30 Energy 100 60 80 60 40 50 Climate 80 70 47 50 0 50 Chemical restrictions 100 53 60 60 50 40 Chemical additives 90 0 0 0 0 0 8 Requirements: Non Pay: Earnings: Non No 1-33 low Minimum wage Partly 34-66 medium Recommendations for living wage Yes 67-99 high Requirements for living wage 100 full 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. 33 0 100 0 0 0 0 50 70 70 0 0 0 0 50 20 0 100 0 0 0 0 0 100 100 0 0 0 0 75 20 0 50 0 0 0 0 50 0 0 0 0 0 0 50 100 0 70 0 0 0 0 0 100 100 50 50 0 0 50 0 0 50 0 0 0 0 100 50 50 0 0 0 0 75 20 0 100 0 0 0 0 0 100 100 50 50 0 0 50 Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej Nej 100 100 100 100 100 100 100 0 100 50 100 100 50 50 30 75 100 100 90 90 90 100 100 100 0 50 50 80 30 50 0 100 100 100 100 100 100 0 100 100 0 0 0 0 100 100 100 100 100 100 100 100 0 90 90 40 40 0 30 30 100 100 100 90 90 90 100 0 100 90 90 90 75 30 50 20 100 100 90 90 90 75 0 75 50 50 50 0 25 30 0 0 0 0 0 0 0 100 50 50 0 0 0 0 30 67 100 100 90 90 90 100 0 50 50 33 33 80 60 30 N/A 0 N/A 60 60 60 100 0 N/A 75 N/A 33 0 0 0 9 Coffee SUSTAINABILITY REPORT 2015 was the first full-year when we sold 100 percent certified coffee. During the year, sales of our ecological coffee increased by 33 percent. Each sixth cup of our coffee is now ecologically produced and thereby cultivated entirely without chemical pesticides and artificial fertilisers. By having moved 2015 Sales of our ecological coffee have increased by 33 percent. 2015 was a good year both for Arvid Nordquist and for sustainability. Sales increased for several of our certified products, which in turn has lead to significantly improved sustainability performance. Each certified product that is sold instead of a conventional product implies that slightly less pesticide and artificial fertiliser have been used, and that ecosystems have been exposed to a little less pressure, along with slightly better conditions for production staff. Food Sales of certified goods are also growing within other brands. Our organic baby food, HiPP, has seen sales rise by 17 percent, despite an increase of the offering of organic baby food from other players during the year. One of the future challenges is to explain to consumers why they should choose HiPP instead of other baby food, and above all instead of other certified baby food. HiPP chose during the year to discontinue Krav-certification of all goods, and to instead use EU-ecological. Meat and dairy products for HiPP’s baby food come from Germany, where our baby food is produced, and demands regarding conditions for animals in Germany differ from Krav’s rules. Instead of having the Krav label on certain cans and jars, and EU-ecological on others, we have chosen to have EU-ecological through the whole line. Sales of HiPP have increased by 17 percent. 10 from conventional coffee to UTZ.-certified, the use of artificial fertilisers has declined by one fifth, and the use of pesticides has been cut by half. This implies that many watercourses and soils have not been over-fertilised, many climate gases have not been released, and that many workers, plants and animals have escaped being affected by pesticides. Moreover, we have contributed SEK 33 million in premiums to the UTZ and Fairtrade, which cultivators will receive in order to improve conditions for both people and the environment. Through our climate compensation, we have contributed SEK 3 million to the plantation of trees so that roughly 80 hectares of forest could be planted. SEK 33 million in premiums to the UTZ and Fairtrade. Wine There has not been any distinct rise in sales of certified wine. We continue to try to broaden our range of certified wines, and 15 of our 25 new wines were either sustainably or ecologically produced during the year. We have held, and will continue to hold, an intensive dialogue with producers in Italy and South Africa and other countries in order to persuade them to go over to a more sustainable production process. A general trend in the sector is an increase in the proportion of ecological wine production, but many producers still need to be convinced of the advantages of daring to take the first step. Arvid Nordquist worked with implementing the BSCI’s new Code of Conduct during the year. The code will be followed up in the coming year both at wine producers and at plantations. We have strengthened our competence through three people having attended a diploma course at the Academy for Human Rights in Business. Arvid Nordquist worked with implementing the BSCI’s new Code of Conduct during the year. A SELECTION OF VARIOUS SUSTAINABLE ACTIVITIES DURING THE YEAR We have launched a line with seven Fairtrade-certified teas. We are a proud co-financier of the newly opened social food store, Matmissionen, in Rågsved where exposed and vulnerable people can buy food at low prices. At the same time, the initiative contributes to reducing food wastage because producers and stores can donate goods that would otherwise be discarded. We have also initiated a collaboration agreement with the Africa Wildlife Foundation and contribu ted with about SEK 215,000 for the protection of Africa’s elephants. GOALS AND CHALLENGES We have previously identified our five most prominent sustainability challenges: Carbon footprint along the entire value chain Artificial fertiliser, water and pesticides Corruption and human rights Resilient food supplies Knowledge, control and communication To meet the challenges and contribute to sustainable development, we have set four sustainability targets that are to be achieved by the year 2020. 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. 80% CERTIFIED PRODUCTS BY 2020 The goal of 80 percent certified products will need to be revised further to taking over the distribution and sale of the Kellogg’s and Pringles brands in 2016. For the moment, these two brands do not have any certified products, and the proportion of certified goods in our range is subsequently lower. Our ambition is to work with sustainability issues and certifications for these two brands. 50% FOSSIL-FREE BY 2020 The goal of that at least half of our business shall be fossil-free is challenging. In 2015, we improved and developed our monitoring of emissions from transportation and increased the use of fossil-free fuel in both incoming deliveries to our roastery and outgoing transport from the roastery. Incoming deliveries represent the largest challenge regarding the target of halving the use of fossilbased energy, because we cannot always control the type of transport and fuel used for incoming goods in the same way as when goods leave our roastery. We have also started a project that in the near future will find solutions to create a completely fossil-free roastery. We still have some way to go with regard to monitoring our 100 largest suppliers. Within the wine segment, several audits will be performed in 2016 in order to follow up the requirements of the Code of Conduct. By increasing our proportion of certified products, we also reduce the need of own controls at producers, because they are audited as part of the certification process. 2015 AND MOVING FORWARD In general, we can see the results of the work that we have started. We have come a long way with the goal to be associated with sustainability. In 2015, we strengthened our ranking in both the Sustainable Brand Index and in Handelsattityder’s index. We will now continue to strengthen both our sustainability work and our brand. Continued intensive dialogues with wine and food producers shall lead to a higher number of certified goods; explicit consumer information shall further increase the sales of these goods; and through courses and internal projects we shall strengthen both our own competence and our internal process of reducing our environmental impact - at the same time as we continue to secure and strengthen the positive effects on communities where our goods are produced. RESULTS 11 Summary RESULTS SUSTAINABILITY REPORT FOSSIL-FREE OPERATIONS Arvid Nordquist aims to reduce dependence on fossilbased fuel with the target of at least 50 percent fossil-free operations by the year 2020 regarding inward deliveries, processing and distribution of all of the Company’s products. Energy is compiled and calculated in kWh. In total, energy usage is unchanged despite an increase in sales. The fossil-free proportion has however risen by 8 percent. Inward deliveries represent close to 70 percent of the energy usage. Fossil-based and fossil-free energy usage 2014-2015 (kWh) 40 000 000 35 000 000 30 000 000 25 000 000 20 000 000 RESOURCE FLOW 15 000 000 Arvid Nordquist’s influence within the sustainability areas of the environment, society and economics are strongly dependent on our resource flow. In 2015, the total resource flow increased by about four percent, and amounted to more than 70,000 tonnes of original raw materials and packaging (of which products constitute about 46,000 tonnes). Total resource flow - original raw materials + packaging spread by business area (kg/year) 70 000 000 10 000 000 5 0000 000 0 Fossil 2014 Fossil-based and fossil-free energy usage spread by inward deliveries, processing and distribution in 2015 (kWh). 60 000 000 1% Fossil-free Fossil-free 2014 2015 Fossil Distribution Processing 2% Inward delivery Food, p. 40 000 000 Fossil-free Food, r. m. 30 000 000 Wine, p. 20 000 000 Wine, r. m. Distribution 13% Processing Inward delivery Coffee, p. 10 000 000 12 9% 6% 50 000 000 0 Fossil 2015 Coffee, r. m. 2013 2014 2015 69% CARBON FOOTPRINT IN ARVID NORDQUIST’S PRODUCT LIFECYCLE The calculation of the carbon footprint embraces the lifecycle from the production of input goods for agriculture, through to cultivation, processing and ultimate transportation to the store shelf. The calculation does not include any possible deforestation effects before the ground is cultivated. Arvid Nordquist’s carbon footprint has risen with increased sales volumes. However, the large increase has been caused by changes to the standard for how climate calculations shall be made. As of 2014, so-called biogenic emissions from the processing of coffee beans after cultivation are now included. Carbon footprint for Arvid Nordquist’s operations and product portfolio 2013 - 2015 (tonnes CO2e) Arvid Nordquist’s carbon footprint therefore increased by 21 and 29 percent for the years 2014 and 2015 respectively, compared with the year 2013. The increases are due almost entirely to the inclusion of the biogenic emissions in conjunction with the processing of coffee beans where the pulp is removed. The largest part of Arvid Nordquist’s carbon footprint comes from the cultivation phase, and represents about 48 percent. Climate gases from the processing phase then follow with about 20 percent. 120 000 100 000 80 000 Processing coffee beans Growing Processing 60 000 40 000 20 000 Inward delivery Packaging Distribution 0 2013 2014 2015 SUSTAINABILITY-CERTIFIED FOOD The most effective way for Arvid Nordquist to influence the production chain of the Company’s products is to endeavour to increase the proportion of sustainability-certified products. The goal is to have at least 80 percent of products certified by the year 2020, where coffee shall be 100%, wine 75% and food 50%. Compared with 2013, when 44 percent were certified by a sustainability certification approved by Arvid Nordquist, the proportion in 2015 was 66 percent. Wine is the only business area where the proportion of certified products declined slightly compared with the previous year. Proportion of sustainability-certified products per business area 2013 – 2015 (%) 100 2013 90 80 2014 70 2015 60 2020 50 40 30 20 10 0 Food Wine Coffee Total 13 SUPPLIER AUDITS OTHER SUSTAINABILITY DATA Another way of securing sustainability performance in the supplier and production chain is to monitor and control the suppliers. The goal for 2020 is that 100 percent of all major suppliers shall be audited, and that cooperation for sustainability shall be established with key suppliers. In 2015, the proportion of audited suppliers was 25 percent. Arvid Nordquist’s production chain takes into consideration a number of other resources that generate a series of various environmental and social effects. The Company’s products are cultivated on close to 20,000 hectares of land in different parts of the world. In 2015, the cultivation of Arvid Nordquist’s products used approximately 4.6 million tonnes of water, where the production of wine was particularly dependent on water. In addition, a shade over 300,000 kg of pesticides and around 4,700 tonnes of mineral fertiliser were used. COMMUNICATION OF ARVID NORDQUIST’S SUSTAINABILITY WORK It is important for Arvid Nordquist to measure and monitor how the surrounding world perceives the Company’s sustainability work. The goal is that at least 90 percent of customers, suppliers, employees and coffee consumers shall associate Arvid Nordquist with sustainability by the year 2020. A number of studies were carried out in 2015, and Arvid Nordquist performs well in all of them. Consumer - Sustainable Brand Index 2015: 1 ST place Environmental responsibility - coffee companies 2 nd Social responsibility - coffee companies place 11th Total all food companies place Customer - Handelsattityder 2015: 1 ST Sustainability Hot Drinks (6.4 of 7) plats Employees – Employee survey: The next measurement of our employees’ perception of our sustainability work will be performed in 2016. 14 Of the 17 global development goals adopted by the UN, the work for economically, socially and environmentally sustainable development in the world represents an important milestone. However, there are no guarantees that we achieve the goals if all parts of society - trade and industry, civil society, politicians, and public authorities - do not actively endeavour to achieve change in a sustainable direction. Each company and activity that has the ambition to secure its future existence and success has every reason to observe the development goals, and evaluate how to actively and in the best way contribute to achieve them. We at Arvid Nordquist feel inspired and strengthened in our sustainability work and are convinced that a continued investment in certified products lies well in line with the 17 global goals, particularly if we combine this process with clear steps towards fossil-free operations and greater control of our entire value chain. We are moving in the right direction, but will definitely not reach our destination for some time yet. 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 15
Similar documents
here - arvid nordquist
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 th...
More information