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COMPLIANCE AND SUSTAINABILITY

COMPLIANCE AND SUSTAINABILITY. Presentation to the Produce Marketing Association Tony Mahar April 2010. agenda. Context Compliance V Sustainability Who’s pushing What’s the response What do we need to do?. Who are we?. Corporate Affairs. Sustainability.

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COMPLIANCE AND SUSTAINABILITY

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  1. COMPLIANCE AND SUSTAINABILITY Presentation to the Produce Marketing Association Tony Mahar April 2010

  2. agenda • Context • Compliance V Sustainability • Who’s pushing • What’s the response • What do we need to do?

  3. Who are we?

  4. Corporate Affairs Sustainability EnergyWaterWasteSocial issues Consumer AffairsCommunicationPublic Relations Supply Chain Health Nutrition Food RegulationsNutrition and HealthFood Safety Product trackingLogisticsRetailer relations

  5. AFGC & sustainability • Industry based forum • Policies and programs • Co-operative and coordinated response • Communicate achievements

  6. Sustainability... Social Bearable Equitable Environmental Economic Viable

  7. Compliance sustainability • Meets rules • Reactive • Short term • Minimalist • Lowest cost • Avoid penalties • Beyond rules • Proactive • Longer term • Strategic • Cost effective • Opportunities

  8. Then Compliance now Sustainability • Food safety • NGERS • National Pollutant Inventory – NPI • Water treatment • Waste audits • Chemical residue limits • Functional foods • Public sustainability report • Company targets • Supplier requirements • Investment in new technology

  9. The sustainability journey... We are here... Compliance Compliance plus Efficiency Strategic Pro-activity Sustainable growth Avoid CostSave moneyMake money

  10. sustainability • More than compliance • Not just a new business card • Bigger than just environment • Incorporated across the business • Trade offs

  11. Who’s pushing? • Business – competitive • Retailers – • less suppliers • sustainability targets • supplier requirements • Government – • regulations for water, waste energy • EEO • Consumers • more awareness • more information ? • more expectations ? Sustainable production

  12. Industry response • Price of entry – food safety! • Compliance by another name = business • Business = Competitiveness • More with less • Complex mix of competitiveness drivers and market dynamics • Inconsistent and clumsy? • Market driven...

  13. Walmart - Sustainability Index • Supplier self assessment • Rationale – • Population is increasing • Resource use is outstripping supply • Consumers want to know ? • 15 questions: • Energy and Climate • Material efficiency • Natural resource use • People and community See - www.walmartstores.com/sustainability

  14. Uk leaders • Tesco – carbon footprint of 000’s products! • M & S – Plan A • Sainsbury’s - cease sale of caged birds • ASDA • cut food miles • extend British growing season ? • increase British farmers ? • Waitrose • reduce emissions by 10% by 2010 • reduce waste

  15. Sustainability Strategy • 40% reduction in carbon emissions by 2015 • 200 million litres of water saved • Use of 3.4 million crates to replace waxed boxes. • Zero food waste to the general waste stream by 2015. • 25% reduction emissions per carton delivered by WW owned trucks.

  16. What are we doing about it • Insight from UK/EU and US • Struggling to keep up – reporting! • We are improving • Building relationships • Developing collective / collaborative responses • Competitive advantage?

  17. Examples... • Water – • information on re-use policy • Energy – • Carbon labelling • standardised procedures for NGERS • Waste – • Guidelines for reviewing packaging • Social – • support for broad industry response – RSPO • Supply chain – • collaborative work on SFP • Health & Nutrition – • Collective response to marketing to children

  18. labels/logos – do consumers care?

  19. The food industry needs to... • Ensure food safety • Improve measuring and reporting • Improve resource efficiency • Engage and participate • Co-operate across the supply chain

  20. Questions & comments...

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