Olivia Knight Adams Coca Cola Profiting from Sustainability Conference York Dec 2014
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Transcript of Olivia Knight Adams Coca Cola Profiting from Sustainability Conference York Dec 2014
Coca-Cola and Sustainable Agriculture
Presented by: Olivia Knight-Adams – NWEN Environment Manager
10 December 2014
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Content1. Sustainability at Coca-Cola
2. Why sustainable agriculture matters
3. Our approach to sustainable agriculture
4. What sustainable agriculture means for our suppliers?
5. Sustainable agriculture in practice
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Sustainability at Coca-Cola …
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Enhancing Enhancing Enhancing Enhancing People’s People’s People’s People’s WellWellWellWell----BeingBeingBeingBeing
Building Strong Building Strong Building Strong Building Strong CommunitiesCommunitiesCommunitiesCommunities
Protecting the Protecting the Protecting the Protecting the EnvironmentEnvironmentEnvironmentEnvironment
SUSTAINABLYSUSTAINABLYSUSTAINABLYSUSTAINABLYGROWINGGROWINGGROWINGGROWING
5
COMMUNITIES ENVIRONMENTPEOPLE
NutritionNutritionNutritionNutrition
Active Healthy Active Healthy Active Healthy Active Healthy
LivingLivingLivingLiving
Responsible Responsible Responsible Responsible
MarketingMarketingMarketingMarketing
Product Safety & Product Safety & Product Safety & Product Safety &
QualityQualityQualityQuality
Charitable Charitable Charitable Charitable
ContributionsContributionsContributionsContributions
Human &Human &Human &Human &
Workplace RightsWorkplace RightsWorkplace RightsWorkplace Rights
Women’s Women’s Women’s Women’s
Economic Economic Economic Economic
EmpowermentEmpowermentEmpowermentEmpowerment
Water stewardshipWater stewardshipWater stewardshipWater stewardship
Sustainable Sustainable Sustainable Sustainable
PackagingPackagingPackagingPackaging
Energy Efficiency & Energy Efficiency & Energy Efficiency & Energy Efficiency &
Climate ProtectionClimate ProtectionClimate ProtectionClimate Protection
Sustainable Sustainable Sustainable Sustainable
AgricultureAgricultureAgricultureAgriculture
FRAMEWORKFRAMEWORKFRAMEWORKFRAMEWORKSUSTAINABILITYSUSTAINABILITYSUSTAINABILITYSUSTAINABILITY
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Why sustainable agriculture matters…..
7
Agriculture is critically linked to energy and water and all three are at the heart of the sustainability challenge
greater supply volatility
more unpredictable yieldshigher production costs
8
9
Why sustainable agriculture matters to Coca-Cola?
Brand risk tied to
sourcing
Supply disruptions
£ increases & £ volatility
Changing consumer
preferences
Social media
Power of civil society
Globalization
Declining trust in
corporations
Population growth
Emerging middle class
Climate volatility
Water stress
Soil degradation
More
agricultural
ingredients
2020 Growth
Vision
=
Changing operating
conditions
+
Agricultural
supply constraints
+
Global trends magnifying
market forces
1111
Our approach to sustainable agriculture….
12
We are committed to promoting sustainable sourcing and supporting sustainable sourcing practices across industry
• Incorporating sustainable sourcing criteria into long-term ingredient sourcing
plans
• Working with partners and suppliers to improve livelihoods through efforts
to increase crop yields and reduce production costs
• Helping farmers to improve agricultural practices and reduce environmental impacts such as minimizing use of pesticides & optimizing
fertilizer applications.
• Helping build industry-wide collaboration to gain alignment and effect
change in the agricultural sector
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GOAL: 100% of priority commodities meet sustainable procurement standards
SUSTAINABLE AGRICULTURE
Tea
Sweeteners:
Sugar (Cane)
Sugar (Beet)
Corn(HFSS)
Stevia
Fruit:
Orange
AppleMango
Lemon
Grape
Coffee Soy Palm OilPulp & Paper (Forestry products)
Other:
Coca-Cola’s 2020 Sustainable Agriculture Goals and Commitments
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Environment
7. Water Management
8. Energy Management and Climate Protection
9. Conservation of Natural Habitats and Ecosystems
10. Soil Management
11. Crop Protection
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Human and Workplace Rights
1. Freedom of Association and Collective Bargaining
2. Prohibit Child, Forced or Abuse of Labor
3. Eliminate Discrimination
4. Work Hours and Wages
5. Safe and Healthy Workplace
6. Community and Traditional Rights
Farm Management Systems
12. Harvest & Postharvest Handling
13. Reproductive Material Identity, Selection & Handling
14. Management Systems, Record Keeping and Transparency
15. Business Integrity
Sustainable Agriculture Guiding PrinciplesLAY THE FOUNDATION FOR “SUSTAINABLY SOURCED” EXPECTATIONS
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Building a comprehensive set of criteria
Sustainable Agriculture Guiding Principles
Environment (shortened)
Principle 7. Water Management
� Comply with applicable laws and regulations
� The annual volume of water withdrawn is recorded and withdrawal
amounts do not exceed an authorized or permitted amount
� Sources of water (surface and groundwater) utilized are inventoried.
� Overall demands on local water source(s) are understood. If the water
source is under stress, a dialogue is initiated with other stakeholders to
develop a solution.
� Total water usage is reduced by implementing water saving practices.
� Where irrigation is used, the most efficient system as is technically
available and financially affordable is implemented
� Appropriate management and treatment systems for all wastewater
discharges exist and are maintained.
� Land management practices are implemented to minimize impacts of diffuse pollution (e.g., runoff) on surface and groundwater bodies.
� Irrigation water quality is monitored and managed to minimize negative
impacts on crops and surrounding ecosystems.
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What sustainable agriculture means for our suppliers…..
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Route to SAGP compliance
Beet
Clear expectations
All Tier 1 direct suppliers must have full line-of-sight to farm
locations-which must meet SAGP minimum expectations
Flexible approach
Various pathways to compliance according to commodity &
whether supplier is already working against existing standards
(which we have benchmarked SAGP against)
Industry alignment
Where existing standards do not exist (e.g. beet) we are
supporting development of industry wide initiatives such as
SAI Platform FSA to demonstrate compliance with SAGP
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What is SAI Platform?• Founded in 2002 by Unilever, DANONE & Nestle, as non-profit organization to
exchange sustainable agriculture knowledge across range of food chain stakeholders
• SAI Platform now a global food and drink industry initiative with 60 active
members supporting the development of sustainable farming practices at the field level.
• Retailers are being invited to join SAI further changing the dynamics of the platform
• Aims to make it easier & more flexible for farmers worldwide to adopt sustainable
farming practices
• Developed series of common principles & practices which evolved into Farmer Sustainability Assessment (FSA)
Why SAI Platform FSA?
Meets needs of the industry
A simple, yet comprehensive tool with implementation & verification guidelines to assess farm sustainability
Applicable to all crops (including arable, fruit and vegetables) and all farm sizes
Addresses environmental social &economic criteria & promotes continuous improvement
Offers an easy scoring system resulting in a clear overview of the farm’s sustainability
Unique advantages for farmers
Increases supply chain consistency
Excel tool backed-up by comprehensive IT solution reduces duplications and time requirement by farmers, www.standardsmap.org
Responds to needs of many customers in value chain (Unilever, Heineken, Mondelez, Mars already support joint action on sugar beet) reducing audit needs & costs
Reduces work for the farmer as it pre-filters legislation and cross-compliance requirements (in EU) on the ITC tool
Added value from SAI training, insights & tools for continuous improvement
Our preferred route to demonstrate compliance with SAGP for beet & fruit
Provides harmonised approach to sustainable sourcing across F&D industry
2020
Sustainable agriculture in practice….
Globally: We support over 40 sustainable sourcing projects in 25 countries aimed
at improving crop yields & livelihoods of farmers, while reducing costs &environmental impact
Europe: We actively support Innocent’s Doñana Strawberry & Sustainable Water Management project in Spain & Skylark Foundation in Netherlands (friends in rotation” approach)
England: Partnership with WWF since 2012 promoting water sensitive farming,
supply chain sustainability and good water stewardship. Focussed on River Nar
in Norfolk, source of approximately 80 % of beet used in our drinks made in GB
Collaborating and sharing knowledge with farmers, local communities and other
strategic partners has been key to successful implementation of sustainable
agricultural practices
Pressures on the River Nar
• Nar failed to reach “Good Status” under EU Water Framework Directive
• Soil erosion & compaction resulting in in-river sedimentation
• Phosphate and nitrate loss from soils resulting in in-river eutrophication
• 21 high sediment ingress points identified
• Need identified to reduce farm runoff (which carries nutrients, pesticides and sediments) from entering the River Nar
SolutionsBuilt partnership with Norfolk Rivers Trust – trusted local knowledge
Appointed Farm Advisor to provide farmer support – hotspots identified & bespoke farmer management plans
created
Key interventions included installing:- baffles - swales
- silt traps - reed beds
Achievements & Benefits Preventing agricultural pollution running
into river, restoring 1.8km of river habitat for trout & other species
Reducing need for fertilisers and improving soil quality for farmers
Worked with communities & government in river catchment planning to help
rivers meet good ecological status
Promoted water stewardship through stakeholder engagement
THANK YOU