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Robin Connell Manager, Sustainability Programs . Sustainability Evolution.
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Robin ConnellManager, Sustainability Programs Sustainability Evolution
Del Monte Foods is one of the country’s largest and most well-known producers, distributors and marketers of premium quality, branded pet products and food products for the U.S. retail market, generating approximately $3.7 billion in net sales in fiscal 2011.With a powerful portfolio of brands, Del Monte products are found in eight out of ten U.S. households. Food product brands include:DelMonte®, Contadina®, S&W®, College Inn®. Pet food and pet snacks brands include Meow Mix®, Kibbles 'n Bits®, Milk-Bone®, 9Lives®, Milo’s Kitchen™, Pup-Peroni®, Gravy Train®, Nature’s Recipe®, Canine Carry Outs®. The Company also produces and distributes private label food and pet products.
A Simple Question… • In 2006, “a customer” asked “What are you doing for Sustainability?” • And so it formally began, …we track energy, water & waste KPIs & goals, conduct lifecycle assessments, practice LEAN techniques at our 20 facilities, and analyze our supply chain greenhouse gas footprint. • Next phase….Evolve to implement sustainable supply chain accountability, and social compliance initiatives to manage risk and continue to meet customer & consumer expectations.
Corporate Responsibility At Del Monte Foods, we’re passionate about bringing high-quality, healthy, and nutritious foods to people and their pets in a way that protects the environment, builds strong ties to our communities, and enables our Company to grow and flourish. • People focus • Stewardship of natural resources • Quality and innovation • Our Sustainability Policy reflects three key tenets: PEOPLE PLANET PERFORMANCE
Environmental Sustainability Goals DISTRIBUTION • 10% Reduction in GHG emissions per ton of finished product • 20% Reduction in fresh water usage per ton of finished product • 75% Reduction in solid waste going to landfill from operations per ton of finished product • 15% Reduction in packaging per pound of product • 7% Reduction in GHG emissions in miles per unit sold • PACKAGING For every ton of product we produce, we are committed to reducing our environmental footprint using a baseline year of 2007 and target year of 2016 PROCESSING
Goals – Digestible Data • Largest Impact • Drives Improvement • Drives Competition • Better Managed • Visually conceptualize • Tangible
Considerations • Organizational structure • CY or FY • Metric & Baseline • Normalized or Absolute • Public vs. Aspirational • Standards – WRI/GHG Protocol, E-Star Portfolio Program • Costs/revenue tracking • Production planning • Peer Set • Customer expectation • Materiality • Dynamic software • Communications Strategy
Integrated parts • LEED Gold • Green Workplace Challenge • WCRC Green Business Cert. • CMTA GHG Reduction Award • 80% Corrugate from SFI • Customer social compliance audits • Continue to educate • LCAs on Veg Pouch • Packaging Goal progress
Del Monte Solar Project • Combined 1.9 MWh installation • Over the 25 year life expectancy • Realize $5M in tax deductions and credits • Almost $13M in avoided utility payments • Receive over $3M in rebates • Lease agreement • Total kWh produced Jan 2009 – Feb 2011: 8,720,860 kWh • Total value to date including California Solar Initiative incentive and energy value: $3.20M HANFORD: 6400 panels 2011 PV kWh/ kWh Usage = 9% Renewable KINGSBURG: 2680 panels 2011 PV kWh/ kWh Usage = 44% Renewable
Energy Scoping – 20 facilities, 5 DCs, 2 R&D, Offices • Refrigeration Offices – LEED HQ Energy Star Portfolio Manager Resource Tracking Pressure Cookers & Hot cooling water, and Hot Topping water (VEG) Atmospheric Cookers & warm cooling water, and cool syrup (FRUIT) Ovens (Milk Bone) Extruders (KnB) Hydrostats (wet)
Our Approach as a Customer to Our Suppliers • Supplier Code of Conduct • Appointed Sourcing and Supplier Diversity Manager • Conducted Lifecycle Assessment a segment of our business to understand a portion of our supply chain • canned vs. fresh vs. frozen • Potential product packaging option • Developing co-manufacturing collaboration • Supply Chain GHG emissions evaluation
Evaluating Del Monte’s Supply Chain • Completed Supply Chain GHG emissions evaluation • Understand largest contributors to DM’s carbon footprint
Del Monte Agricultural Practices and Key Points • Dedicated Variety Program • High yield, high recovery crops • About 900 contracted growers • 100% Integrated Pest Management • Average radius from farm to gate is less than 100 miles • Piloting on-farm sustainability metrics with Natural Resource Defense Center for the Stewardship Index for Specialty Crops • 92% Tomato growers utilize drip irrigation • Highly involved in academic institutions such as UC Davis and University of Wisconsin
Progress – Plan Ahead Humility Re-evaluate Re-state & Communicate • Celebration • Communicate • Recognize
Thank you! Robin.connell@delmonte.com