Rozanne Davis - presentation to Fresh Inspirations 2012 Conference

1. Our approach to sustainable ingredients
January 2012

2. Question
What are the key hurdles facing us?
What might be some solutions?

3. an innocent story
the challenge
sustainable sourcing

4. Our philosophy
A simple philosophy underpins the business
Create a business we
can be proud of
a.k.a The Nursing Home Test

5. Company values
This core philosophy drives our 5 company values
Create a business we can be proud of
Be Be Be Be Be
natural entrepreneurial responsible commercial generous
• Keep it human, • Chase opportunities • Leave things a • Create growth and • With time where
put people first and be responsive little better than profit for us and needed
we find them our customers
• Make 100% • Be creative and • With praise
natural, challenge the status • Reduce impacts • Be tough, and be wherever possible
delicious, quo fair
• With wealth with
healthy stuff,
• Prove it can be done • Think clearly, act those that deserve
100% of the time
decisively and it
• Act and talk keep the main
naturally, thing, the main
treating others thing
as you would
want to be
treated.

6. Our approach
•We think sustainability is about…
•Leaving things a little bit better than we find them
•Balancing the needs of
Planet
sustainable business
Profit People
•And focussing on your main impact areas (from farm to fridge and beyond)
Nutrition Ingredients Production Packaging Legacy
what we make what we use how we make it how we deliver it what we contribute

7. Strategy
Sustainable Sustainable Sustainable Sustainable Sustainable
Nutrition Ingredients Production Packaging Legacy
what we make what we use how we make it how we deliver it what we contribute

8. an innocent story
the challenge
sustainable sourcing

9. Balance
It’s not always straightforward, it’s about finding the right balance
Planet
Viable natural
environment
Sustainable
development
People Profit
Nurturing Sufficient
community Economy

10. Loss of arable land

11. Water availability

12. Changing climate

13. Where to source raw materials?

14. the issue
population
energy
consumption
resources
ecosystems
water
labour
We will need to produce more, with less…

15. a fruit business

16. impacts
This presents challenges through our fruit supply chain
Enough volume Price volatility
…of the right quality Sustainable sourcing

17. an innocent story
the challenge
sustainable sourcing

18. 1. Boots on the ground

19. Integration
Sustainability is owned by each supply chain team

20. The buy process
Sustainability is part of every fruit buy
Cost
Availability
Sustainability
Quality
Risk management

21. Get closer
We work to understand the social and environmental challenges for each fruit and country

22. 2. Set your standard

23. Our standard
We have created our own set of innocent
standards

24. Coverage of the issues
No existing certification scheme meets all our requirements
innocent X Y Z
All types & sizes of
Purchasing
farms   
Safety / Quality No additives  
Non GMO    
Food safety 
Social Worker rights/wages   
Worker safety   
Product pricing  
Local community   
Environment Biodiversity protection    
Soil conservation    
Efficient water use    
Agrochemical bans /
restrictions    

25. innocent standards
We have aimed at a set of standards that cuts across the different areas

26. Scope
Our standards cover our full supply chain
Growing Processing
…and we have tried to build in (some) benchmarking to
ease the burden on farmers

27. 3. Keep it practical

28. the implementation challenge

29. Focus
We have broken down the requirements of the standards into three categories
Mandatory • The must haves
Required • The want to see soons
We also have a different
standard for ‘small’ and
‘large’ farms
Desirable • The lets work towards

30. Growing
Need identified
We use risk assessment as a Risk assessment phase 0
High level risk AND opportunity scoping
practical tool
No screamers OR we
identify an opportunity
Risk assessment phase 1
Risk assessment docs and innocent visit
High –
medium Low risk
risk
Risk assessment phase 2
processor response to specific questions OR self-assess
against critical elements Corrective action
plan if required
High- med
Low risk
risk
Innocent or 3rd party audit
assess sample farms Corrective
action plan
Medium -
High risk
low risk
Alternative source Buy certified Investigate
or supplier ingredients project need

31. Baseline
Our assessments are built into a conformance measure…..

32. What then?
…and they also feed into our ingredient strategies
Where are we currently • What’s the conformance for
the supply base
• Where are the macro
Where do we need to focus hotspots
• What trends are correlated
with the hotspots
What does the forward
journey look like • What should our ingredient
strategy look like

33. 4. Tailor the approach

34. Ethical ingredients
We want to buy our fruit from farms that look after both their workers and the
environment
We work to understand the issues for each country/fruit and then choose an approach that
will best meet their needs and ours.

35. Ethical ingredients
Rainforest Alliance is an example of what works very well for some of our fruits
1. Covers both social and environmental issues
2. Encourages farms to build their skills
and capabilities
3. Works with all types and sizes of farms
•All our bananas are from Rainforest Alliance certified
farms.
•We are steadily increasing our volumes of Rainforest
Alliance certified pineapple
•We are actively looking at expanding to other (tropical)
fruits eg.passion fruit

36. Certified fruit
Rainforest Alliance drives positive change for pineapple
better soil
protection
maintain
biodiversity
reduced
pesticides, safer
working

37. 5. You need to focus

38. India
A deep dive shows a number of issues

39. Background
Climate adaptation models show India, the home of mango, is under significant threat
Erratic monsoons and changes in temperature will change the face of Indian agriculture

40. Background
We are investing in a project in the Konkan region
1. Area most susceptible to climate change
2. Significant mango cultivation, 1.6M ha
3. Little scope for other crops

41. Climate adaptation
Konkan Agriculture University has developed a Five-Point integrated package of
practices - we see potential for using this for climate change adaptation

42. Objective
To demonstrate a sustainable model for mango production – to safeguard farm
income by mitigating risks caused by adverse weather
CLIMATIC
IMPACT
pest & disease fruit quality
loading & productivity
CHANGES IN LONG-TERM
MANGO SUSTAINABILITY
CULTIVATION FARM FARM OF MANGO
PRACTICES socio-economic PRODUCTION
INPUTS impact OUTPUTS
RETURN ON INVESTMENT

43. Socio-economic considerations
Farms have been selected to reflect the difference in land size and management
Large, single cropping farming system.
Size of farm
Mango grown as cash crop
Smallholders, typically practice mixed farming,
with limited access to finance and labour.
Subsistence farming, with a few tree [cash] crops

44. Socio-economic considerations
Farms have been selected to reflect the difference in land tenure and management
Owner not active,
but has permanent farm manager
Owner, permanently based and active on farm Tenant
Land ownership, from owner-manager to landlord-tenant

45. Focus areas
Flower regulation
Canopy management
Fruit drop management
Nutrient management Pest/disease management

46. Findings
Two of the five points of the programme were covered for the 2011 harvest – with good
results
The five-point programme witnessed a 50% reduction in chemical loading,
without increased presence of pest and disease in the groves
Fruit retention was 25% higher than the control
Shelf-life of mango was noticeably better, with less incidences of postharvest
diseases

47. 6. Use partnership
(to punch above your weight)

48. Water strategy
Understand and improve water management in the
innocent supply chain
Measure Protect Improve Educate
current areas of supply business
usage water chain partners and
stress processes consumers

49. Starting point

50. Mapping our fruits
Water stress is a measure of water consumption relative to availability of fresh, clean
water – we built a picture of the relative water stress between our sourcing countries

51. Strawberry and banana footprint
The project recipe covered 4 of the top 5 fruits purchased by innocent drinks, whilst
touching a number of water stressed regions
orange
strawberry
apple
banana
red grape
white grape
lime

52. Spanish strawberry footprint
Spanish strawberry had the highest water footprint

53. Competition
…and there is competition for water in the region
strawberries
protected areas

54. Conflict

55. Donana National Park
wetlands dunes and beaches forests
875 plant species and 226 bird species
Annual stop over point for 6 million migratory birds
Wintering spot for 500 000 water fowl
One of the last refuges for Spanish Imperial Eagle and the Iberian Lynx

56. Where to start
It’s about focussing where you can engage and influence

57. A choice
We faced 2 options
or
Change our Face the
sourcing challenge

58. The issues

59. Partnership

60. Measurement
We have solid (commercial) water usage data (covering 10% of all the
strawbs in the region)
What water optimisation is possible

61. Management
The water model is not simple – but we can get going with some Best
Practice Guidelines
Farmers in project are starting to implement changes
in practice for the new season

62. Attitudes
The project has created a (positive) dialogue on water
(Starting) to drive change

63. farmer choice
We are just kicking off a second year of the project
Feed into regional governance – and a long term
solution for the region

64. 7. For the future

65. The future
ROI = security of supply mitigate and adapt think wide

66. Thanks